Low-income Americans face climbing energy costs and the possibility of summertime power shutoffs—even amid a devastating heatwave—if they can’t pay their utility bills, thanks to a lack of legal protections in most states. A report issued Tuesday by the Center for Energy Poverty and Climate (EPC) and the National Energy Assistance Directors Association (NEADA) highlights the urgent need for increased federal funding to address this issue, as more than 100 million Americans this week face heat advisories and extreme temperatures driven by climate change become increasingly common.
The report, released by EPC and NEADA, warns that many low-income people face the prospect of extreme heat inside their own homes. “For households who will be shut off from electricity this summer because they cannot afford their bills, even being inside their homes is dangerous,” the report states. With 31 states offering no summer shutoff protections, many families are left vulnerable to the dangers of prolonged heat exposure.
The report estimates that the average American household will spend $719 on cooling costs between June and September of 2024, an 8.7 percent increase over last year. Rising costs of basic goods have left low-income households forced to decide between paying for food, energy, rent, and other essentials such as medicine. Despite the increased need, federal funding to help low-income Americans cover their energy costs declined in fiscal year 2024. The Low Income Home Energy Assistance Program (LIHEAP) budget was cut significantly—from $6.1 billion to $4.1 billion—and only 12 percent is estimated to be allotted to summer cooling initiatives.
Republicans in the U.S. House of Representatives initiated the cut, attempting to make it even more dramatic. EPC and NEADA have called for the funding to be restored, and progressive lawmakers have regularly pushed for more funding for the energy needs of low-income Americans in recent years. “Energy companies are skimming profits from rate hikes,” Food and Water Watch wrote in a briefing released Wednesday, citing examples in California, Louisiana, and Florida.
Power shutoffs in summer months are common across much of the U.S. and affected roughly 1 million customers or more in 2022, according to energy insecurity researchers Sanya Carley and David Konisky. Writing about what they call the “disconnection crisis,” Carley and Konisky noted that large investor-owned utilities in Florida, Georgia, South Carolina, and Indiana have averaged disconnection rates near 1% of customers, with some city utilities reporting even higher rates.
One in four Americans faces energy insecurity—a figure that hasn’t improved in the last decade, according to data from the U.S. Energy Information Administration. The problem is prevalent among people with incomes less than twice the federal poverty line and is especially common in Black and Hispanic households. A 2021 study in Nature Energy confirmed these disparities.
The monopolistic power that utilities hold, including their influence in state capitals, contributes to the high prices and the lack of protections for consumers. Residents feel the squeeze and are forced into difficult choices—made worse by the extreme weather caused by climate change. “Aside from unreasonable rate hikes, my May usage was up 10 percent from last year because of rising heat,” David Coleman, a retiree in Florida, told Food and Water Watch. “I pay that bill out of my UnitedHealthcare healthy food benefit. Less for food; more for energy.”
As climate change drives more frequent and severe heatwaves, the strain on low-income households grows. Prolonged heat exposure without relief can lead to severe health issues, including heatstroke and dehydration, further exacerbating the challenges faced by these communities.
EPC and NEADA recommend increased federal funding and policy changes to protect vulnerable populations from power shutoffs during extreme weather. Advocacy groups like Food and Water Watch emphasize the need for fair energy pricing and robust consumer protections to prevent these crises.
“The rising costs and lack of protections are putting millions of Americans at risk,” said an EPC spokesperson. “We need immediate action to ensure that no family has to choose between cooling their home and putting food on the table.”
The call for action is clear: To address energy insecurity, especially as climate change makes extreme weather events more common and more severe, increased protections and funding are urgently needed.
COMMENTS