Hotter temperatures mean higher utility costs for millions of Americans

As Americans recognize Earth Day, consumers may have noticed one effect of climate change: Higher temperatures around the U.S. are straining their budgets, and in some cases even forcing families to choose between cooling their homes and buying groceries. 

More intense heat is driving higher energy consumption, with over half of U.S. counties facing potentially higher utility and other related costs, the Bank of America Institute found in a recent analysis of its customers' spending patterns. As of March, customers' total monthly utility bills, including, water, gas and electricity, averaged nearly $300 — up roughly 25% compared with 2019.

"As climate events and conditions continue to grow in frequency and intensity, households will likely face additional expenditures. For example, households exposed to heat waves and higher average temperatures are more likely to use air conditioning, which could increase their energy consumption and associated expenses," the report's authors wrote.