A report from Congress’ Joint Economic Committee is shedding light on the impact inflation has had on Americans’ energy costs. According to the report, Pennsylvania households are spending “$88 more per month on energy” compared to January 2021 when President Joe Biden took office. The total number comes out to more than $3,500 since Biden’s inauguration on increased energy costs alone.
The report indicated total spending for a Keystone State family has spent more than an additional $25,000 in costs since January 2021.
The U.S. Bureau of Labor Statistics, which in addition to labor market data catalogs electricity prices for specific regions, shows Philadelphia has seen a 33% increase in per kilowatt-hour prices in the same time frame. Reporting earlier this year showed the rise in electricity prices was higher than inflation, with prices across the country having risen 3.6% compared to inflation’s 3.2%.
Polling shows energy affordability is “easily one of the biggest concerns” for Pennsylvania voters, with 77% of PA voters saying higher energy prices have put “serious pressure on family finances.”
Just last week, PPL Electric announced its intent to raise electricity rates on customers effective December 1st. The change requires approval from the Pennsylvania Utilities Commission.
Some believe the rise in consumer costs has more to do with the “huge demand for electricity” to power data centers popping up across the country from companies like Facebook, Google, and Amazon.
Energy prices are not only top of mind for Pennsylvania. California Governor Gavin Newsom recently signed an executive order that would “[trim] down several state programs that could be inflating utility bills, while also assessing wildfire mitigation expenses.”
