Why are electric bills rising so fast?

Electric bills are rising across the United States, driven by the costs of aging electrical infrastructure and surging demand from data centers that power artificial intelligence. What can be done about the bottom line for American households?

Electricity bills are “rising even faster than the cost of groceries,” said The Wall Street Journal. While overall consumer prices rose 2.4% year-over-year in May, power costs increased 4.5% during the same time period, and federal officials expect this summer’s air conditioning bills to be 4% higher than last year’s. That is largely due to a “jump in natural-gas prices,” though grid upgrades and data centers also factor into the hike. The rise in power costs began about the same time Russia’s invasion of Ukraine started driving up the price of natural gas, which is the “largest source of power generation.”

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