Ken Thomas woke up last Wednesday morning in his home in Boca Raton to discover that the power had gone out. He received a text message from his utility company informing him that a piece of equipment had failed at 2 a.m. By the time a repair crew arrived eight hours later, the sweltering Florida summer heat had already begun to take its toll. “You just don’t realize how important your power is until you don’t have it,” says Thomas, a retired air traffic controller. “In Florida's heat, you just can't live without air conditioning, especially this time of year.”
To combat the high temperatures, Thomas has invested in energy-saving windows and insulation to maintain a comfortable home environment. However, even with these improvements, his electricity bills still exceed $400 a month. “It’s painful to see that bill when it comes in,” he laments.
Thomas's experience reflects a broader trend across the country, where electricity prices have surged more than twice as quickly as the overall cost of living in the past year. This spike in electricity costs becomes particularly burdensome during the sweltering summer months when air conditioning units are working overtime. In Pembroke Pines, Florida, resident Al Salvi faces similar challenges; his power bill can soar to $500 a month. “There are a lot of seniors down here living paycheck to paycheck. They can barely afford prescriptions, let alone high utility bills,” says Salvi, who is 63 and uses a wheelchair. “Now we have to decide whether to pay the electric bill or buy medication. It’s not fair.”
This year, the utility company serving both Thomas and Salvi, Florida Power & Light, proposed a rate increase that would raise bills for the average South Florida resident by approximately 13% over the next four years. In response, the AARP initiated a petition drive to oppose the rate hike, quickly garnering tens of thousands of signatures. “Our members are pretty upset,” states Zayne Smith, AARP Florida's director of advocacy. “This is just another way people are getting nickel and dimed out of being able to afford to live here in Florida.”
Recently, Florida Power & Light announced a tentative agreement on rates with commercial and industrial customers, with CEO Armando Pimentel asserting that the deal would ensure the company can continue to provide reliable electricity to support the state's rapid growth while keeping customer bills low. However, specific details of the new rate proposal have yet to be disclosed.
Florida is not alone in grappling with soaring electricity costs. Across the United States, electricity prices are rising rapidly due to a mix of factors related to both demand and supply. One significant contributor to this trend is the increasing number of power-hungry AI data centers that are emerging to meet the growing demand for artificial intelligence. The Energy Department predicts that data centers and other commercial customers will surpass household electricity usage for the first time next year. This presents a challenge for policymakers who must find ways to accommodate the additional demand and determine who will bear the financial burden.
“Regulators are always playing catch-up,” explains John Quigley, a senior fellow at the Kleinman Center for Energy Policy at the University of Pennsylvania. “The growth of data centers is outpacing the responses from grid managers and public utility commissions across the country.”
Another factor driving up electricity costs is the soaring price of natural gas, which is used to generate more than 40% of the nation’s electricity. As the United States exports more natural gas as liquid natural gas, competition from foreign customers is pushing domestic prices higher. According to the Energy Department, the cost of gas used for electricity generation surged over 40% in the first half of this year compared to 2024, with an additional 17% increase expected next year. “Any way you look at it, gas-fired power is expensive,” Quigley notes. “It’s going to become increasingly costly as natural gas exports rise. The future lies in making electricity cheaper through clean energy solutions.”
Currently, one in six households struggles to pay for electricity. Although solar and wind power can be cheaper alternatives to gas-fired plants, the construction of new power supplies and the necessary infrastructure will require significant investment. “We’re not questioning whether the grid needs to be rebuilt,” asserts Mark Wolfe, executive director of the National Energy Assistance Directors Association, which advocates for low-income energy customers. “But for low-income families, the capacity to pay more than they currently do is simply unattainable without leading them into shut-off situations.”
The federal government allocates approximately $4 billion a year to assist low-income families with their energy bills. However, Wolfe argues that this support is insufficient to cover the rising costs associated with cooling during the summer months. Additionally, proposed budget cuts could eliminate this vital assistance entirely.
In Boca Raton, Ken Thomas expressed relief upon having his power restored after enduring nearly ten hours without air conditioning. However, he remains apprehensive about his upcoming electric bill. “I value my utility that I need to stay cool in the summer and warm in the winter,” Thomas reflects. “But I also know that there’s a limit to what we can afford to pay.” As electricity prices continue to rise, many Floridians are left wondering how to manage their energy costs while maintaining a comfortable living environment.
