Utility costs have declined this year, but increasing demand will drive them back up, report says

A new report finds that Americans are seeing lower costs in their utility bills, but increasing demands for power are expected to drive up costs again soon. 

Year-over-year growth in utility payments shot up by about 15% over the course of 2022 and 2023, according to the Bank of America report, but went negative this year. Between March and May 2024, they declined 1.4% relative to the same period in 2023. 

Since the March-May period of 2019, median utility payments per customer, according to the report, increased close to 20% across all generational age groups. Younger millennials saw increases of nearly 40%, likely because they are buying larger homes. 

The report notes that, while there’s some relief for consumers, this could be short lived. Increased demand from data centers, onshoring of manufacturing, electrification and electric vehicles will stretch electricity supply. To meet the demand, there will need to be significant investments in electricity generation. This will, according to the report, put upward pressure on consumers’ utility bills for the foreseeable future.