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Families face utility shut-offs as costs surge
Kristy Hallowell spent six months last year powering her New York home with a generator after her monthly energy bill tripled to $1,800, leaving her unable to pay. The 44-year-old single mother, her two children, and her mother now owe about $3,000 in utility debt, with her gas still disconnected and electricity at risk of another shut-off this winter.
Debt crisis deepens nationwide
A recent analysis by the Century Foundation and Protect Borrowers reveals that nearly 5% of US households risk having their overdue utility bills sent to collections as winter approaches. The number of households with severely delinquent energy debt increased by 3.8% in the first half of 2026, coinciding with President Donald Trump's second term.
Electricity prices rose 6.9% year-over-year in November, outpacing overall inflation, according to official data. The National Energy Assistance Directors Association projects winter heating costs will jump 9.2% this season, driven by higher natural gas prices and colder-than-average weather.
Political blame game amid economic strain
The Trump administration has pointed to Federal Reserve interest rates and policies under former President Joe Biden as the root cause of economic hardship. In a November social media post, Trump claimed energy costs were "tumbling down" under his leadership, despite campaign promises to halve utility bills.
With consumer confidence declining and Democrats making gains in recent state elections, the administration has shifted its messaging to emphasize affordability. Meanwhile, federal proposals seek to reduce funding for state programs assisting low-income residents with energy bills.
"Costs under the TRUMP ADMINISTRATION are tumbling down, helped greatly by gasoline and ENERGY."
President Donald Trump, November 2025
Clean energy rollbacks and AI demand fuel price hikes
Experts warn that the administration's decision to pause offshore wind leases and scale back clean energy initiatives could further inflate electricity prices. A report by Climate Power notes that canceled projects would have generated enough power for 13 million homes, contributing to a 13% rise in residential electricity bills since Trump's return to office.
John Quigley, a senior fellow at the University of Pennsylvania's Kleinman Center for Energy Policy, attributes part of the price surge to the natural gas industry's increased exports, which have driven up domestic costs. Additionally, the artificial intelligence boom has strained the power grid, with tech giants like Alphabet and Amazon expanding data centers that consume vast amounts of electricity.
"Electricity generation is being saddled with ever-increasing costs of fuel."
John Quigley, Kleinman Center for Energy Policy
State-level efforts to shield consumers
Some states are taking steps to mitigate the burden on households. Virginia regulators recently created a separate rate category for large electricity consumers, such as data centers, requiring them to pay a larger share of costs. Governor-elect Abigail Spanberger has pledged to ensure tech companies "pay their fair share" by promoting on-site clean energy generation.
In North Carolina, Ibrahim Awadallah, 30, installed solar panels last year to reduce his energy costs. While his bills remain lower than his neighbors', he noticed a 10% increase in October, even while traveling. A proposed data center nearby has raised concerns about further price hikes.
"I don't think things are getting better anytime soon."
Ibrahim Awadallah, North Carolina resident
Nonprofits report surge in utility debt cases
Laurie Wheelock, executive director of the Public Utility Law Project of New York, said her organization has seen a rise in utility shut-offs for unpaid bills in 2025. Before the pandemic, clients typically owed $400 to $900 in debt. Now, many face balances exceeding $6,000.
"There's been this difficult mix of increased costs and financial instability."
Laurie Wheelock, Public Utility Law Project of New York
Alex Jacquez of the Groundwork Collaborative emphasized the need for long-term structural fixes while addressing immediate affordability concerns. However, relief for consumers is unlikely in the near term, with residential energy prices expected to remain elevated.
