Are electricity bills getting more expensive? What to know about rising costs in Louisiana

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If your utility bill has increased recently, you're not alone.

Electricity costs are, on average, 5.5% higher today than a year ago and natural gas has increased by 13.8%, according to data from the U.S. Bureau of Labor Statistics.

U.S. citizens are paying more for electricity this summer due in part to a combination of extreme temperatures and the expansion of data centers needed to support the increase of artificial intelligence usage, USA Today reported.

From May 2024 to May 2025, the average residential price for one kilowatt-hour of electricity increased almost 6.5%, according to the U.S. Energy Information Administration (EIA).

Why are electricity bills going up? What to know about energy and natural gas prices in Louisiana

Electricity costs can vary due to energy rates, taxes and utility fees in an area, with nearly 60 utility companies set to increase electricity rates this year, which will affect more than 57 million citizens, CBS News reported.

In Louisiana, the average residential electricity prices increased 14.1% between May 2024 and May 2025, according to data from the EIA

Many factors can influence the price of electricity, such as fuel prices, power plant costs, weather conditions like extreme temperatures, transmission and distribution system, as well as unregulated and regulated prices, according to the EIA.

In Louisiana, the increase in electricity bills is also due largely in part to a spike in natural gas prices, which a number of power plants use to generate electricity. Utility companies then pass costs on to customers as fuel adjustment charges, according to the Louisiana Public Service Commission.

Additionally, increased coal prices also contribute to higher overall fuel costs for power generation, which impacts customers' bills, says the Louisiana Public Service Commission.

Beyond natural gas and coal, Louisiana's electrical grid has aging transmission and distribution lines that lack efficiency and wastes power. While some improvements have been made, the costs of less efficient systems are passed on to customers, Louisiana Illuminator reported.

Residential customers purchasing electricity from the Community Power Coalition of New Hampshire can expect an average $26 increase to their bill, driven by a rate hike of between 31 and 41%.
Residential customers purchasing electricity from the Community Power Coalition of New Hampshire can expect an average $26 increase to their bill, driven by a rate hike of between 31 and 41%.

How can I lower my electricity bill amid rising prices?

While residents can't control natural gas prices, they can monitor fuel costs by how much natural gas is being used in a household.

As for energy efficiency, residents can ensure thermostats are working correctly to avoid unnecessary use of electricity for air conditioning.

Presley Bo Tyler is a reporter for the Louisiana Deep South Connect Team for Gannett/USA Today. Find her on X @PresleyTyler02 and email at [email protected]

This article originally appeared on Shreveport Times: Why is my electricity bill so high? What to know in Louisiana

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