10 cities where AC costs are about to skyrocket this summer

Across the U.S., millions of homeowners and renters are heading into summer facing higher power bills. But in some cities, this will be due to much more than just blasting the AC. Big jumps in electricity prices are coming June 1. Why are rates going up? Electricity demand from data centers and AI, along with extreme temperatures and frequent heat waves is outpacing the slow rollout of new plants and transmission. Our power grids in the U.S. have become extremely strained, their infrastructure is outdated, and costs are getting pushed to everyday people. 

In several major cities, standard utility rates are scheduled to rise starting June 1, 2025, and most are locked in through November 30, 2025. That means if you don’t act, you could be stuck paying more for six months or longer. Depending on where you live, you might also have a major opportunity to save. 

Because these areas have deregulated electricity markets, you can save with lower rates. We’ll break down where electricity prices are about to increase the most, and which cities currently have competitive third-party rates available that could help you save hundreds this summer. If you live in one of these cities, you may still have a chance to lock in a lower rate before it hits.

Cities where power bills are about to spike, and how much you could save

If you live in one of these cities, your bill could rise automatically starting June 1.

The lower rates available in each market change frequently, but these are some of the rates available as of April 2025, and give a good idea of how third-party rates are trending in these cities compared to the confirmed standard rates going into effect June 1. 

‍Here’s how we calculated your estimated Summer electricity costs

At Arbor we pull all pricing data from utility filings and supplier offers across deregulated U.S. markets. Here's how we calculated estimated monthly costs: 

• We used 900 kWh/month, the U.S. average household electricity usage.
• Estimated monthly cost = supply rate × 900 kWh
• We compared the utility’s upcoming standard rate to the lowest third-party supply rate available in each market.

Your final summer bill totals will depend on how much electricity you specifically use and will also include taxes, fees, etc. But this should give you a good idea of what to expect if you live in one of these metro areas. 

Same power. Same usage. Big difference in cost.

If you stay on your utility’s new default supply rate, your summer bills will certainly go up, and not just from the heat. Yes, you’ll likely start using more electricity. But when these rates increase, you’ll be paying more per kWh too. 

Take Cincinnati, for example:

• On the new rate (10.45¢/kWh): $94.05/month
• On a lower rate available (8.02¢/kWh): $72.18/month

That’s over $20/month in savings, or more than $240/year, just by making the switch.

This is the reality in deregulated markets:

🔌 Same power
🏠 Same home
📈 Very different bills

What you can do, and why most people don’t

If you live in a deregulated electricity market, you can shop around for a better supply rate. But most people either don’t know they can, or don’t know where to start.

That’s where Arbor comes in:

• We track your current rate
• We compare it to what's available
• We switch you automatically when there's a better deal

Because in 2025, saving $200/year on electricity isn’t just “nice to have” — It’s a week of groceries. A flight to visit friends. It’s meaningful. 

📉 Want to avoid a surprise rate hike this summer? Look into your options now, don't wait!