I Used Less Energy—So Why Did My Utility Bills Go Up?
Like many homeowners, I’ve been paying closer attention to my utility bills. Energy costs have been in the spotlight for a while now, so when I compared my December 2025 bill to the same month in 2024, I expected an increase.
What I didn’t expect was to see my electric usage drop—while my total bill climbed anyway.
That disconnect raised a bigger question: if I’m using less energy, why am I paying more for it?
Digging into the numbers led me beyond simple usage and into how electricity and gas are priced, billed, and delivered—and it also made one thing clear. While homeowners can’t control utility rates, there are ways to control how efficiently our homes use the energy we’re paying for.
The Electric Bill Breakdown: What Changed and What Didn’t
Looking at my electric bill side by side, some things stayed exactly the same. Utility and state charges were identical in both years, and those fixed charges now account for roughly 40% of my total bill.
The increase came from the electricity itself. My electric usage was down 2% year over year. Despite using slightly less electricity, my bill was noticeably higher.
The actual cost of electricity rose by about 25%, shifting it from around 50% of my total bill to nearly 60%. In short, I paid significantly more for essentially the same amount of power.
Why Electricity Costs Are Rising in New Jersey
The reason electric rates have jumped isn’t complicated, but it’s rarely explained clearly.
New Jersey has shut down most of its in-state electrical generating facilities. With fewer local power sources, utilities are now forced to buy electricity on the open market, often from out-of-state providers at higher prices, and transmit it over power lines owned by other companies.
At the same time, the state is pushing residents and businesses to move away from fossil fuels and rely more heavily on electricity. The combination of less local supply and growing demand was always going to lead to higher costs.
It’s Not Just Electricity—Gas Bills Tell the Same Story
Electricity isn’t the only utility showing this pattern. My natural gas bill tells a nearly identical story.
According to my South Jersey Gas bill, December of last year was about 11% colder than the previous year. That explains some increase in usage; my gas usage was up 16%. But my total gas bill increased by 22%.
A More Practical Path Forward
I can’t control how utilities set rates, how energy-related policies are implemented, or which fees are layered onto my bill that distract from the rising costs of energy sources. Most homeowners can’t. But what is within reach is reducing how much energy a home needs to stay comfortable in the first place.
That starts with efficiency—not just newer equipment, but how the entire home works together.
Regular HVAC maintenance ensures systems run as efficiently as possible, rather than quietly wasting energy month after month. Properly sized HVAC installations matter too; oversized or undersized systems cycle inefficiently, drive up costs, and shorten equipment life.
Just as important is what happens outside the equipment itself. Air leaks in attics, crawl spaces, and around plumbing and electrical penetrations allow conditioned air to escape year-round—hot air in summer, warm air in winter. Encapsulating and sealing these gaps, then properly reinsulating, reduces the workload on heating and cooling systems before energy is ever billed.
Rising utility costs may be beyond our control, but how prepared our homes are to handle them isn’t. Education, maintenance, and smart upgrades won’t eliminate higher rates—but they do put homeowners back in control of how much energy they’re paying for.
Contact Comfort Now by Bob McAllister at 609-493-0994 or request service online for an energy consultation and recommendations for helping reduce your energy waste