There is a national conversation today about energy prices, whether for heating our homes or filling our gas tanks. Prices are going up, in some places resulting in over 50% increases in energy costs. The burden of these bill increases and uncertainty disproportionately impacts low- and moderate-income families. Because driving to work and keeping our homes warm are not discretionary expenses, bill increases represent real hardship for millions of American families.
Policymakers should immediately address the current bill hardships American households are facing because of spiking fossil fuel prices. They also have an opportunity to get at the root cause of this repeating pattern by passing the electrification measures in the Build Back Better Act. Transitioning American households to efficient electric machines in their basements, garages and driveways will give American families the energy bill security they need and deserve.
- Households using natural gas for heat should expect to pay $161 more than last year over the heating season, and households using propane and fuel oil should expect to pay over $500 more. Meanwhile, households with electric heat pumps can only expect to pay $21 more– just 13% of the cost increase gas heated homes will face.
- Over the past two decades, modern electric heat pumps would have supplied 38% lower bill volatility than fossil fuels for home heating, and electric vehicles would have cut driving bill volatility by 88%.
- Compared to last year, average monthly driving costs are expected to be $118 higher for households driving gasoline vehicles, while only $4 higher for those with electric vehicles.