If your latest electric bill made your jaw drop, you’re not alone, MSN reports.

Across the country, Americans are opening winter utility statements showing totals of $600, $800 — even $1,000.

The painful truth is that electricity isn’t just spiking because of cold weather. It’s becoming structurally more expensive — and that’s squeezing household budgets even as overall inflation cools.

The retail price of electricity for households has jumped roughly 21% in the past three years.

In freezing weather, as much of the U.S. has experienced this winter, electric heating systems can run almost nonstop.

Homes that rely on electric resistance heat or heat pumps see usage climb sharply when temperatures stay below freezing. At the same time, utilities lean more heavily on natural gas–fired power plants to meet peak demand.

When demand surges, wholesale electricity prices often rise, and those higher costs eventually flow through to customers.

In other words, households are facing a double hit: electricity costs more per unit than it did a few years ago, and winter forces you to use more of it.

Much of the U.S. power grid still depends on natural gas. When gas prices swing, electricity prices tend to follow. As coal plants and some nuclear facilities retire, the grid becomes more exposed to fluctuations in gas markets.

At the same time, utilities are investing heavily in upgrading aging infrastructure.

The transition to cleaner energy also carries upfront costs. While wind and solar power have low operating expenses, integrating large amounts of renewable energy requires new transmission lines, backup capacity and grid-balancing services. Those reliability payments and infrastructure upgrades show up on residential bills.

Extreme weather has added another layer of spending.

Wildfires, polar vortices, hurricanes and heat waves have prompted utilities to invest in resilience measures such as undergrounding lines, expanding reserves and strengthening equipment. The costs of those projects are ultimately borne by ratepayers.

All of these pressures have been building quietly for years. Historically, electricity prices have risen slightly faster than overall inflation. In recent years, the pace has accelerated.

What You Can Do to Lower Your Bill

You can’t control utility pricing — but you can control usage.

Lower the thermostat. Even reducing your heat by 1–2 degrees can cut costs meaningfully. Layer clothing and use blankets at night.

Seal leaks. Caulking windows, adding weather stripping, and insulating attic spaces can pay off quickly.

Check your water heater. Set it to 120°F and limit long showers — hot water is a major hidden electricity user.

Run appliances smartly. Wash clothes in cold water. Avoid running dishwashers or dryers during peak hours if your utility uses time-of-use pricing.

Ask about budget billing. Many utilities offer payment smoothing programs that spread winter spikes across the year.

Look for rebates. Federal and state programs may offer incentives for insulation upgrades, smart thermostats, or more efficient appliances. If your bill seems unusually high, compare it to last year’s usage. Sometimes a malfunctioning heat strip, water heater, or thermostat setting can silently inflate costs.