Data centers, climate change and other factors have caused utility rates in the United States to increase by 38% since 2020.
Utility rates in the United States are rising steadily, which panelists on a recent S&P Global webinar warn could have a negative impact on city finances nationwide. "If fewer homebuyers and businesses choose to move to cities where utility rates are high — shrinking the tax base — those cities could have less money to pay for utility infrastructure costs," Vicky Uhland writes for Smart Cities Dive.
Smart Cities Dive reports:
“Data centers, climate change and other factors have caused utility rates in the United States to increase by 38% since 2020, pushing local utility bills into the national spotlight,” said Gabe Grosberg, S&P managing director, North America regulated utilities. That is “something we’ve never seen before,” he said.
While utility rates are high in cities, Sarah Sullivant, S&P sector lead for America's public finance, said sustainable debt for public transportation in underserved communities, along with affordable housing, are "bright spots."
Read the full story: Utility costs could put pressure on cities’ finances, S&P experts warn
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Data centers, climate change and other factors have caused utility rates in the United States to increase by 38% since 2020.
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