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Higher Energy Costs, Lower Income

By KSEE News
February 10, 2012 Updated Feb 10, 2012 at 7:19 PM PDT

Energy costs are higher, and on average, we're making less money as a nation than we did ten years ago.

If you do the math, it adds up to tough times.

Sure, a lot of us have felt the effects of the recession.

While many of us fought to keep our bank accounts above water, comparative information on energy costs was being compiled that could explain why it felt like we were drowning.

In 2001, people who made $10,000 or less a year put 36% of their budget towards energy costs. These days, it's 78%.

The higher the income over the years, the lower the percentage. PG&E says, it's costing more now to produce electricity. It depends on the cost of fuels.

Denny Boyles, PG&E Spokesperson: "Your energy cost is based on what your using. It's like your fuel costs and your car. If you're driving your car a lot, your fuel costs are going to go up. Electricity and gas are essentially the same. It's based on what you use."

In 1999, the median household income was about $53,000 a year. In 2010, it was just under $50,000.

According to the report by the American Coalition for Clean Coal Electricity, this year, gas expenditures will have increased by 136% from 2001.

Residential energy costs, like heating and cooling will have gone up 43%.

It's estimated the average American family will spend just over $6,000 on energy this year.

You can bet many of us will be pretty upset about it. PG&E is expecting it.

"People are struggling right now. With everything, not just with electricity or gas costs, but with everything in their lives and we want to talk to them. We want to do whatever we can to help."

In anticipation of the higher energy costs, PG&E is urging customers to participate in its programs that help manage energy costs.

They stirred up quite a controversy in recent years, but with your Smartmeter, you can see where your energy is being used at home.
You can access that at PGE.com.

It can be tedious, but local PG&E reps say there are ways to save on energy at home. You can find a list for that at KSEE24.com. Just click on newslinks.