Energy Affordability Past, Present, Future
Ups and Downs
I’m confident our industry and our regulators are up to the challenge, as has been proven time and time again in our history. Energy will become even more affordable going forward.
Fortnightly Magazine - February 24, 2025
Four Utility and Regulatory Leaders on Energy Affordability
Duke Energy, Eversource, APPA, NY PSC
Public Utilities Fortnightly examines the issues surrounding affordability challenges with leaders in the know.
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
APPA
“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.”
State Utility Commissioners' Survey on Affordability
The States
Twenty percent of the nation’s 200 state utility Commissioners completed PUF’s three-question anonymous survey.
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.
How PG&E's Simple, Affordable Model is Powering Progress
PG&E
“By combining lower operating and financing costs with a growing customer base to help share those costs, we can reduce upward pressure on rates over time.”
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.