Why is my electric bill so high in the summer?

Two things stack: air conditioning and rates. Cooling is the single largest electricity load in most US homes in summer — central AC alone commonly adds several hundred kWh to a monthly bill. And in 2025–26, most mid-Atlantic and Midwest states also saw their default supply rates reset upward on June 1, driven by record PJM capacity auction results ($269.92/MW-day in 2024, $329.17 in 2025 — the FERC cap). So this summer you're running more hours at a higher price per kWh than last summer.

How much of my summer electric bill is air conditioning?

For homes with central air, cooling typically accounts for a third to half of the summer bill (ESTIMATE — depends on unit size, insulation, and thermostat settings). A 3-ton central AC drawing roughly 3.5 kW can add 300–900 kWh in a hot month depending on runtime. Compare your July kWh to your April kWh on your bills — the difference is almost entirely cooling.

How can I tell if it's the AC or the rate that raised my bill?

Pull two numbers from your bill: the kWh used and the ¢/kWh supply rate. Compare each against the SAME month last year. If kWh jumped but the rate didn't, it's usage (weather/AC). If the rate jumped, it's the supply reset — most PJM-state default rates rose on June 1. If both jumped, they're stacking — which is what's happening to most households in 2026.

Does turning up the thermostat actually save money?

Yes — the US Department of Energy estimates you can save around 10% a year on heating and cooling by setting your thermostat back 7–10°F for 8 hours a day (for example while you're at work). In summer that means setting it higher when you're away. A smart or programmable thermostat automates this. Ceiling fans let you raise the setpoint ~4°F with no comfort loss — but turn them off in empty rooms; fans cool people, not air.

Why did electricity rates go up in summer 2026?

Most utilities in the PJM grid region (PA, OH, NJ, MD, DE, DC, northern IL, and parts of VA/WV) reset their default supply rates on or around June 1. The 2026 resets carry record PJM capacity auction costs — prices hit an all-time high of $333.44/MW-day in the December 2025 auction, and the July 14, 2026 auction cleared at $325/MW-day, the third consecutive auction pinned at the FERC price cap, driven largely by data-center demand growth. Utilities pass these supply costs through with no markup.

What's the fastest way to lower a high summer electric bill?

In order of speed: (1) Check whether a third-party supplier is charging you more than your utility's default rate — that's an overcharge you can fix in one call. (2) Raise the AC setpoint and use fans — each degree matters. (3) Shift laundry/dishwasher to evenings if you're on a time-of-use rate. (4) If the bill is a hardship, apply for LIHEAP or your utility's assistance program — many states run summer crisis programs during heat emergencies.

Bill diagnosis · summer edition

Why is my electric bill so high in summer?

Last reviewed: July 3, 2026 · Independent — no supplier commissions.

Two things are stacking on your summer bill, and most explanations only mention one of them. The first is air conditioning — the single largest electricity load in most homes from June through September. The second is that the price per kWh itself went up this summer: most utilities in the PJM grid region reset their default supply rates on June 1, carrying record capacity-auction costs. More kilowatt-hours, at a higher price each. That's why this July feels worse than last July even if your habits haven't changed.

The 2-minute diagnosis

Grab this month's bill and the same month last year (most utility portals show 13 months). Compare two numbers separately: kWh used and the supply ¢/kWh. Usage up, rate flat → it's the heat. Rate up, usage flat → it's the June reset. Both up → they're stacking, and the fixes below address each side.

Compare your bill against your state's average →

Side 1: the air conditioning math

A typical 3-ton central air conditioner draws roughly 3.5 kW while the compressor runs. In a hot month it can easily run the equivalent of 4–8 hours a day — which works out to roughly 420–840 kWh of cooling in a single month (ESTIMATE — unit size, insulation, and your setpoint move this a lot). At a 15¢/kWh all-in price, that's $60–$125 of your bill that simply doesn't exist in April.

Window units are smaller (0.5–1.5 kW each) but add up fast when three of them run all evening. The quickest way to see your own number: compare your July kWh to your April kWh — the gap is almost entirely cooling.

Run your own numbers: what central AC costs per month → · electricity cost calculator →

What actually cuts cooling costs (in order of impact)

· Raise the setpoint when you're away. The US DOE estimates ~10%/year savings from a 7–10°F setback for 8 hours a day. A programmable thermostat does this for you.
· Ceiling fans let you set the thermostat ~4°F higher at the same comfort — but they cool people, not rooms; off when the room's empty.
· Close blinds on sun-facing windows during afternoon peak — solar gain is a real load.
· Replace a clogged filter. A starved system runs longer for the same cooling.

Side 2: the rate went up on June 1

This is the half most "10 tips to save on summer bills" articles skip. Most mid-Atlantic and Midwest utilities reset their default supply rate on or around June 1 — and the 2025 and 2026 resets carry the record PJM capacity auction results. The auction that pays power plants to be available on peak days cleared at $269.92/MW-day in July 2024 (roughly 9× the prior year), hit an all-time high of $333.44/MW-day in December 2025, and cleared at $325/MW-day on July 14, 2026 — the third consecutive auction pinned at the FERC price cap, driven largely by data-center demand growth.

Your utility passes these supply costs through with no markup — it's not utility profit — but it means every kWh your AC pulls this summer costs more than the same kWh did last summer. See exactly what changed for your utility →

The one summer overcharge you can fix in a phone call

If you're in a supplier-choice state (PA, OH, NJ, MD, IL, DC, DE) and a third-party supplier is charging more than your utility's default rate, summer is when it hurts most — the overcharge multiplies across every AC kilowatt-hour. Check the supply line on your bill against your utility's default rate. Our audit runs on your device; we never see your numbers.

Check my rate — free, 2 minutes

If the bill is a genuine hardship

Summer help exists and goes unused every year: LIHEAP runs summer crisis components in many states during heat emergencies, most utilities offer payment plans and income-based programs, and every state we cover has shutoff protections worth knowing before a disconnection notice arrives. Start here: help paying your electric bill, by state →

Common questions

Why is my electric bill so high in the summer?: Two things stack: air conditioning and rates. Cooling is the single largest electricity load in most US homes in summer — central AC alone commonly adds several hundred kWh to a monthly bill. And in 2025–26, most mid-Atlantic and Midwest states also saw their default supply rates reset upward on June 1, driven by record PJM capacity auction results ($269.92/MW-day in 2024, $329.17 in 2025 — the FERC cap). So this summer you're running more hours at a higher price per kWh than last summer.
How much of my summer electric bill is air conditioning?: For homes with central air, cooling typically accounts for a third to half of the summer bill (ESTIMATE — depends on unit size, insulation, and thermostat settings). A 3-ton central AC drawing roughly 3.5 kW can add 300–900 kWh in a hot month depending on runtime. Compare your July kWh to your April kWh on your bills — the difference is almost entirely cooling.
How can I tell if it's the AC or the rate that raised my bill?: Pull two numbers from your bill: the kWh used and the ¢/kWh supply rate. Compare each against the SAME month last year. If kWh jumped but the rate didn't, it's usage (weather/AC). If the rate jumped, it's the supply reset — most PJM-state default rates rose on June 1. If both jumped, they're stacking — which is what's happening to most households in 2026.
Does turning up the thermostat actually save money?: Yes — the US Department of Energy estimates you can save around 10% a year on heating and cooling by setting your thermostat back 7–10°F for 8 hours a day (for example while you're at work). In summer that means setting it higher when you're away. A smart or programmable thermostat automates this. Ceiling fans let you raise the setpoint ~4°F with no comfort loss — but turn them off in empty rooms; fans cool people, not air.
Why did electricity rates go up in summer 2026?: Most utilities in the PJM grid region (PA, OH, NJ, MD, DE, DC, northern IL, and parts of VA/WV) reset their default supply rates on or around June 1. The 2026 resets carry record PJM capacity auction costs — prices hit an all-time high of $333.44/MW-day in the December 2025 auction, and the July 14, 2026 auction cleared at $325/MW-day, the third consecutive auction pinned at the FERC price cap, driven largely by data-center demand growth. Utilities pass these supply costs through with no markup.
What's the fastest way to lower a high summer electric bill?: In order of speed: (1) Check whether a third-party supplier is charging you more than your utility's default rate — that's an overcharge you can fix in one call. (2) Raise the AC setpoint and use fans — each degree matters. (3) Shift laundry/dishwasher to evenings if you're on a time-of-use rate. (4) If the bill is a hardship, apply for LIHEAP or your utility's assistance program — many states run summer crisis programs during heat emergencies.

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