Customers of California’s largest utility face seventh rate hike since 2024
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Winter is definitely here, but with no clear path to ending the government shutdown yet, states are sending out SOS to prevent millions of Americans from soon freezing to death.
The National Energy Assistance Directors Association (NEADA), which represents state directors of the Low-Income Home Energy Assistance Program (LIHEAP), announced last week that it is calling on electric and gas companies nationwide to immediately stop disconnecting service for nonpayment until federal LIHEAP funds are released and households regain access to financial assistance.
Rep. Don Beyer (D-Va.) and 53 other members of Congress also wrote a letter to major power companies to end late penalties and utility shutoffs for federal employees and contractors during the government shutdown. The environmental nonprofit Sierra Club also joined in a petition asking power companies to keep power on for low-income Americans.
The government shutdown, which began Oct. 1 and is on pace to become the longest government shutdown in U.S. history, has delayed the delivery of energy assistance, leaving some of the nation’s poorest households without assistance to heat their homes as cold weather approaches, NEADA said. At the same time, electricity and natural gas prices have risen sharply, putting further strain on already strained household budgets, the report said.
“The situation is very challenging in terms of (energy appreciation) pricing and the availability of LIHEAP funds,” said Mark Wolfe, executive director of NEADA. “Even if everything goes well now, we won’t get the funding until December at the earliest.”
How many Americans are behind on their utility bills?
According to NEADA data, approximately 21 million households, or one in six households, are behind on their utility bills. Since December 31, 2023, average residential energy has increased by approximately 31% from approximately $17.5 billion to $23 billion by June 30, 2025.
According to NEADA, the number of closures will increase from 3 million the previous year to 3.5 million in 2024. The number of power outages is expected to continue to rise as more Americans face rising energy costs, according to the report. NEADA said 4 million people could be out of work by 2025.
Why are more people falling behind on their utility bills?
Energy prices are soaring due to rising electricity rates due to public investment in power transmission and distribution systems, rising costs of natural gas used for power generation, and increased demand for electricity due to the rapid growth of large data centers. According to NEADA, electricity prices rose 9.5% through July, exceeding the overall annual inflation rate of 3% in September.
NEADA predicts the average cost of home energy will increase 7.6% this winter as electricity bills rose 10% from $1,093 a year ago to $1,205. On top of this, the average summer bill has hit $776, the highest in at least 12 years, putting a strain on household budgets.
“Families should not be forced to choose between heating and eating because of delays in federal funding,” Wolf said. “Utility companies must act in the public interest and suspend power outages until federal aid becomes available again.”
Where are the biggest increases?
From July 2024 to July of this year, electricity prices in 10 states and the District of Columbia increased by more than 15% on average, and five states saw increases of more than 20%. Americans living in these states see their monthly bills increase by $25 to $41.
The locations with the highest increases were:
- Illinois: 28.3%
- Indiana: 25%
- Ohio: 23.4%
- DC: 23%
- New Jersey: 20.6%
- Massachusetts: 18.8%
- Iowa: 17.4%
- Missouri: 17.2%
- Michigan: 15.9%
- Virginia: 15.4%
- Maine: 15%
Medora Lee is USA TODAY’s money, markets and personal finance reporter. Please contact us at mjlee@usatoday.com. Subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday morning.
