Millions risk power shutoffs as energy costs soar
A new report from The Century Foundation and Protect Borrowers finds nearly 1 in 20 U.S. households were in arrears or collections on utility bills as of June 2025, with higher distress in the South and Appalachia. NEADA data show residential electricity prices rose 10.5% from January–August 2025 and project average winter heating bills to climb 7.6% to $976, warning utility shutoffs could reach 4 million households this year.
📌 Key Facts
- As of June 2025, ~1 in 20 U.S. households were in arrears/collections on utility bills; ~1 in 12 in parts of the South/Appalachia
- Average overdue utility balance rose 32% in three years, from $597 to $789
- Residential electricity prices increased 10.5% (Jan–Aug 2025), per NEADA’s analysis of government data
- NEADA estimates 3.5M power shutoffs in 2024 and projects 4M in 2025
- NEADA forecasts average winter energy bills of $976 (+7.6%)
- Con Edison reports ~168,000 customer shutoffs this year (over 5x last year)
- States without cold-weather shutoff protections include AK, FL, HI, KY, NE, ND, SC, TN, UT
📊 Relevant Data
As of June 2025, 10.8 percent of Black households carry an overdue utility balance, which is roughly three times the rate for white households.
Fueling Debt: How Rising Utility Costs Are Overwhelming American Families — The Century Foundation
Black households in the U.S. spend 43% more of their income on energy compared to white households, according to ACEEE analysis.
Understanding Energy Burden: Why Some Communities Pay More — Institute for Energy Justice
Racial disparities in energy burden are primarily attributed to socio-economic inequality, such as low income and inefficient housing, with African Americans more likely to live in older, energy-inefficient homes with structural deficiencies.
Racial disparities in the energy burden beyond socio-economic inequality — ScienceDirect
In the South, higher energy burdens are due to monopoly utilities' outdated profit-making models that result in low efficiency savings, according to the Southern Environmental Law Center.
Tackling the South's energy burden — Southern Environmental Law Center
Appalachia faces higher utility arrears due to loss of coal jobs, the opioid crisis, and older homes that are harder to heat efficiently.
Why Cutting LIHEAP Is a Deadly Blow to Eastern Kentucky — Mountain Association
Electricity prices have surged by 13% in Virginia, 16% in Illinois, and 12% in Ohio due to the concentration of data centers.
Electricity bills in states with the most data centers are surging — CNBC
Wholesale electricity costs are up to 267% higher than five years ago in areas near data centers, which is being passed on to customers.
AI Data Centers Are Sending Power Bills Soaring — Bloomberg
📊 Analysis & Commentary (2)
"The WSJ opinion argues that progressive climate mandates have driven higher electricity prices and reliability problems in blue states, prompting some Democratic leaders to moderate policy — a reality check on ambitious energy transition plans."
"The piece argues Democrats should respond to high energy costs (and the political risk of shutoffs) by adopting pragmatic, supply‑focused policies and targeted relief that make electricity genuinely cheaper rather than relying on rhetorical or cost‑increasing climate measures."