I have been thinking about a looming expense coming and I am realizing utilities have become a double-edge sword. But why is my electric bill so high?
I have had the air-condition on the past week as we experience a heat wave in NYC.
But that is just for a few days. With summer approaching, my air conditioner will be on probably every single night at the very least.
My electricity provider is Con-Edison (ED is the stock ticker).
I own 105 shares of ED. My utility pays me $372.75 annually in dividends. Some months I get paid a dividend that full covers my electric bill for that month.
The problem is electricity rates have risen drastically in the last 2-3 years.
As a result, my electric bills have gone up enormously – particularly over summer.
Increasing Electric Costs
For those who do not know, I have been tracking my monthly expenses here since 2021.
I have a historic record of my electric bills each month for each year.
Let’s look at my electric bills each August from 2021 to 2025.
August 2021: $91.94
August 2022: $91.85
August 2023: $119.66
August 2024: $145.51
August 2025: $170.81
Electricity costs have nearly doubled in the last 5 years.
Meanwhile, nothing I have done has changed.
I live in a studio apartment. August of each year I had my AC on when I sleep or if I am home for a few hours. Nothing new was added. My lifestyle remains the same at home.
Why the increase? Some say higher natural gas prices, delivery costs, and/or not enough power generation.
There may not be one single culprit, but a significant portion appears to be those AI data centers that devour vast amounts of power driving up demand and electric prices.
Conclusion
Why is my electric bill so high? I don’t have a complete answer, although multiple culprits can be pointed at with the most notable being those AI data centers.
But there is my double-edge sword.
On the one hand, I am a shareholder of my utility, and they pay me a quarterly dividend each year (and increased it over many years).
On the other hand, my utility company is billing me increasing amounts each year.
A double-edge sword for sure.
Well, this looks like it will be a more expensive summer.
How about you guys? Have you noticed a surge in electric costs?
Let me know in the comments below!