Currently, electricity prices are rising, on top of all the uncongested demand caused by the Covid-19 pandemic, where the global economic slowdown and pressure from policymakers have impacted utility bills.
“I think if we repeated this analysis next year, there would probably be a small increase this year, but the data I’m looking at doesn’t show a really significant increase in a historical context,” said Geoffrey Blanford, lead author of the EPRI report.
But this isn’t just one story unfolding across the country.
The United States has a particularly confused energy system. How much people pay to airy their homes, keep them heated and move around varies greatly by state and even by neighbor. For example, households in Texas spend a larger share of their budget keeping their pickup trucks running, while families in Massachusetts spend a larger share on heating.
So no – we don’t have an energy crisis, but it’s unlikely that electricity bills will go down anytime soon. But there is good news: Americans will actually be prepared to spend a smaller share of their income on energy in the coming years as technology makes it more profitable to shift away from fossil fuels.
“In our future scenarios, one of the key drivers of change is electrification, particularly of light vehicles,” Blanford said. “This actually reduces your energy portfolio in real terms per household over time, even if you spend more on electricity.” Though electric car sales have fallen in the USA they continue to enter more and more driveways. Increasing the efficiency of your homes and appliances will also lend a hand reduce your energy bills. The report shows that based on current trends, the average U.S. household’s energy portfolio will shrink by 36 percent by 2050, with state-level declines ranging from 10 to 50 percent.