Utility Costs on the Rise Nationwide

June 25, 2008 — -- The Vasquez family from Chicago is feeling the summer squeeze of skyrocketing utility bills, and they're worried about how they're going to afford their bills for the rest of the summer.

From May to June, the Vasquez's electricity bill doubled, from $165 to $333. The gas bill went up even more — from $111 to $256.

Tracey Vasquez says it's especially frustrating because the family of seven are doing their best to conserve energy.

"We've been sleeping with the windows open at night. I limit myself to doing only one load of laundry a day," she said.

But the bills keep rising. "We don't have the extra income to compensate for that, so it's definitely scary," she said.

From coast to coast, utilities are passing on high energy costs to consumers, raising rates up to 29 percent. On top of near-record grocery and gas prices, many consumers are forced to make choices they never thought they'd have to.

"Because it's summer, and they figure they're not going to freeze to death they're choosing not to pay their utility bills, and the utility companies are coming after them and shut down their service in many cases," said Wall Street Journal columnist and "GMA" contributor Wendy Bounds.

Electricity and gas shutoffs are near-record levels in many places, according to the National Energy Assistance Directors' Association.

The Vasquez family will make their payment this month, but barely.

"How are we going to come up with the extra money just to cover the basic needs?" Tracey Vasquez said. "I'm not sure what we are going to do and that's scary."

For many people, paying all the bills in full each month is close to impossible. Mellody Hobson, "GMA" financial contributor and president of Ariel Investments, says if that's the case, you can prioritize your spending and debt in order to soften the financial blow.

Hobson says paying off credit card debt should be the first priority, because if you miss payments the finance charges will only drive you deeper into debt.