Are electricity bills getting more expensive? What to know about rising costs

If your utility bill has increased recently, you’re not alone.

Electricity costs are, on average, 5.5% higher today than a year ago, and natural gas has increased by 13.8%, according to data from the U.S. Bureau of Labor Statistics.

U.S. citizens are paying more for electricity due in part to a combination of extreme temperatures and the expansion of data centers needed to support the increase in artificial intelligence usage, Shreveport Times reported.

From May 2024 to May 2025, the average residential price for one kilowatt-hour of electricity increased by almost 6.5%, according to the U.S. Energy Information Administration (EIA).

Why are electricity bills going up?

Electricity costs can vary due to energy rates, taxes and utility fees in an area, with nearly 60 utility companies set to increase electricity rates this year, which will affect more than 57 million citizens, CBS News reported.

Many factors can influence the price of electricity, such as fuel prices, power plant costs, weather conditions like extreme temperatures, transmission and distribution system, as well as unregulated and regulated prices, according to the EIA.

In some regions, the increase in electricity bills is also due in part to a spike in natural gas prices, which a number of power plants use to generate electricity. Utility companies then pass costs on to customers as fuel adjustment charges, according to the Louisiana Public Service Commission.

Additionally, increased coal prices also contribute to higher overall fuel costs for power generation, which impacts customers’ bills, says the Louisiana Public Service Commission.

Beyond natural gas and coal, electrical grids could have aging transmission and distribution lines that lack efficiency and can waste power. While some improvements have been made, the costs of less efficient systems are passed on to customers, Louisiana Illuminator reported.

How can I lower my electricity bill amid rising prices?

While homeowners can’t control prices, they can monitor fuel costs in a household.

As for energy efficiency, residents can ensure thermostats are working correctly to avoid unnecessary use of electricity for air conditioning.

Presley Bo Tyler is a reporter for the Louisiana Deep South Connect Team for Gannett/USA Today. Find her on X @PresleyTyler02 and email at PTyler@Gannett.com