10
Loading video...
By Giulia Carbonaro
Senior Reporter
0
Share
Newsweek is a Trust Project member
See more of our trusted coverage when you search.Prefer Newsweek on Googleto see more of our trusted coverage when you search.
Nearly 20 percent of Americans could see their electricity bills surge next year, as energy demand is growing and supply is expected to dwindle following closures of coal and natural-gas fired plants across the country.
According to Bloomberg, who first covered the expected rise, more than 65 million Americans will face significantly higher electricity bills in the year from June following a power auction, for which results will be released on Tuesday afternoon, July 30. While the exact increase is yet to be known, analysts cited by the media outlet think that electricity prices could come in two to four times higher than they currently are.
Pennsylvania-based grid operator PJM Interconnection LLC, which is conducting the auction, is responsible for coordinating the movement of wholesale electricity in all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia, as described on its website.
Read More on News
More From Newsweek Vault: The Hidden Costs of Homeownership
...
The company runs auctions aimed at ensuring sufficient electricity supply across its area of jurisdiction and that its transmission grid remains reliable. These auctions also influence what prices will be charged to homes and businesses across PJM's operating region.
Some of the experts surveyed by Bloomberg believed prices could change as little as $35 per megawatt-day and as much as $125 per megawatt-day, with most expecting prices to jump to somewhere in the middle.
More From Newsweek Vault: These Credit Cards Earn up to 5% Cash Back on Utilities
Newsweek contacted PJM for comment by email on Tuesday morning.
Either way, it would be a drastic change from the outcome of the latest power auction held in 2023, which saw prices reach a decade low of $28.92 per megawatt-day. But the situation in the U.S. has since changed significantly.
In an emailed statement to Bloomberg, PJM spokeswoman Susan Buehler could not comment on the possible increase but said that the grid operator "has been expressing its concern about a supply and demand mismatch for quite some time now."
A supply crunch is expected to follow the closure of several coal and natural-gas fired plants which will remove about 4 gigawatts of generating capacity from the grid, as reported by the media outlet. That's enough energy to power roughly 3.2 million homes.
The city of Baltimore in Maryland is expected to be hit by a particularly high price increase as the Brandon Shores coal-fired plant from which it draws power is about to close. According to Bloomberg, electricity bills in the city could increase to $400 per megawatt-day, more than five times the current rate.
Are you worried about the potential increase in electricity bills? Tell us about your concerns by emailing g.carbonaro@newsweek.com.
View 0 Comments
Submit Correction
View Editorial & AI Guidelines