Fortnightly Magazine - February 24, 2025

Affordability: Lon Huber

Duke Energy

“The beauty of economic development is if done right, it increases utility revenues and puts downward pressure on rates because of the increase in utility sales-billing volumes.”

Affordability: Roger Kranenburg

Eversource

“There’s a temporal challenge, with EVs, data centers, and substation investments. Those decisions to enable serving that load are made 5-to-7 years before load shows up. It’s carrying 5-to-7 years of costs before seeing benefits. In the short term, you’re challenged by the impact on rates.”

Affordability: Scott Corwin

American Public Power Association

“The big issue we’re looking at this year is one that could impact capital costs in a public power utility; the need for tax-exempt municipal financing. The tax-exempt status would instantly raise costs if it were taken away.”

Affordability: Caroline Wolfe

New York PSC

“Customers currently qualify for the energy affordability program if household income is below 60% of state median income. This will soon extend to moderate-income households. Customers can demonstrate this to utilities by identifying enrollment in state and federal programs, such as the home energy assistance program or Medicaid.”

Energy Affordability by the Numbers

State Data

Tables report where energy is least and most affordable in the United States. All but two states saw a decrease, and generally saw a substantial decrease, in the average residential share over the last quarter century.

More Energy Affordability by the Numbers

Residential Electric, Gas

Energy was generally more affordable for U.S. households in 2024 than anytime in recent memory, when averaged nationally. Of course, for individual households, energy affordability varies immensely.
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