Rising Energy Costs as Summer Approaches

As summer nears, many Americans are gearing up for higher energy bills. This situation is unsustainable for countless families already dealing with escalating expenses.

This issue extends beyond just the heat. It stems from a deeper imbalance in our energy system that’s leading to increased costs.

The demand for electricity is surging, spurred by various factors: data centers, new manufacturing, growing populations, and the push towards electrifying everything from cars to heating systems. The U.S. is consuming more electricity than ever, yet we haven’t expanded our power generation capacity adequately to match this growth. In short, we need more supply.

In Exelon’s utilities, around 75% of the recent rate hikes relate to generation costs, which are influenced by wholesale market prices and directly impact consumers.

It’s important to note that while these price increases won’t directly benefit Exelon’s power companies, customers still bear the financial burden.

When supply can’t keep up with demand, price increases and volatility are inevitable, and American households end up footing the bill.

America needs an energy strategy that encompasses all these elements to quickly and responsibly ramp up power supply. This includes investing in energy storage, nuclear energy, natural gas, renewables, new technologies, energy efficiency, and the necessary transmission infrastructure.

We recognize the pressure on our customers, serving approximately 11 million Americans. We listen to their concerns about rising bills. To help, we’ve initiated the Exelon Promise, which features a $60 million customer relief fund and safeguards to prevent large energy users from unfairly shifting costs to families and small businesses. Additionally, we’re investing heavily in strengthening our power grid and enhancing reliability to meet the growing demand.

However, to significantly lower energy bills nationwide, it’s not enough to have a less capable grid. We must focus on straightforward, sensible solutions. The priority should be on producing more energy rapidly.

In various areas, electricity supplies are not just limited but are also decreasing due to older plants closing down faster than new ones are being built. Demand continues to climb. The North American Electric Reliability Council has warned that over half the country faces an increased likelihood of power shortages during peak summer periods, which could lead to brownouts or outages.

It’s not merely a reliability concern; it’s also about the rising costs reflected in your monthly bill.

On average, monthly electricity bills have jumped nearly 30% from 2021 to 2025, as per the National Energy Assistance Directors Association. Families and small businesses are feeling the sting.

What’s often overlooked is the root of these increases. Too frequently, discussions fixate on symptoms rather than addressing the underlying issues.

America needs a comprehensive energy strategy that swiftly brings more power online in a responsible manner. This involves funding energy storage, nuclear energy, natural gas, renewables, new technologies, and enhancing transmission infrastructures.

We must also tackle the obstacles that hinder progress. Lengthy permitting processes, inefficient supply chains, and outdated regulations can delay new energy projects for years. We don’t have that luxury of time.

We should remain open to solutions that yield results on a large scale. For instance, permitting regulated utilities to develop and generate their own electricity could expedite the process, making it more cost-effective. A study by Charles River Associates indicated that this approach might save Americans up to $20 billion a year while lowering the risk of outages.

Our goals shouldn’t be based on ideology but on practical needs: increasing supply, ensuring stability, and ultimately driving down costs.

No single power company can independently address the nationwide supply issues.

As we near our nation’s 250th anniversary, it’s essential to recall what has always distinguished America: our capacity to dream big and build the infrastructure that nurtures freedom and prosperity. From railroads connecting vast distances to the electric grid supporting homes and businesses, American workers and energy providers have forged a robust economy. We must confront substantial challenges with determination.

Energy is fundamental to our economy. It powers homes, drives innovation, and supports everything from small enterprises to advanced technologies.

If we aim to advance and reduce the financial pressures on American families, we must act swiftly and decisively.

This begins with establishing clear priorities. We need to focus on generating more energy, bringing additional supply into play, and utilizing all available resources to achieve that.

Because when America increases its energy production, Americans benefit from lower costs.