Key facts
- About one in six U.S. households is behind on utility bills, owing $23 billion.
- Electricity prices are up more than 10% since January 2025.
- Heating costs are expected to rise 9.2% this winter, with winter bills projected to jump 11%.
Millions of Americans are facing a utility bill crisis, with record heat and cold driving up demand and costs. Electricity prices have surged over 10% since January 2025, and heating costs are projected to rise significantly this winter. Approximately one in six U.S. households is now behind on payments, collectively owing $23 billion to utilities. This situation is impacting middle-class families, not just low-income households, creating a broadening affordability crisis with potential political ramifications.
Utility companies are seeking substantial rate increases, with requests totaling $9.4 billion in the first three months of 2026, following a record $31 billion in 2025. While utilities cite factors like extreme weather, aging infrastructure, and the energy demands of data centers, consumer advocates argue that the utility business model, which guarantees returns on capital investments, incentivizes spending over efficiency. Investor-owned utilities reportedly made $244 billion in profit from 2021 through 2024, with a significant portion of customer bills going towards wealth transfer to Wall Street and executives rather than infrastructure improvements.