Bipartisan Policy Center Report Highlights Rising Energy Burdens for Low-Income U.S. Households
A recent report from the Bipartisan Policy Center (BPC) indicates that inflation-adjusted electricity and natural gas costs have increased in 31 U.S. states over the past five years. The analysis reveals that low-income households in 48 out of 50 states face high or severely high energy burdens, meaning a significant portion of their income is spent on energy bills. Specifically, 25 states, including populous ones like Texas, California, and New York, are experiencing a problematic combination where energy burdens are high, electricity and natural gas rates are rising, and household incomes are not keeping pace. The U.S. Department of Energy defines a high energy burden as exceeding 6% of household income, with severe burdens surpassing 10%. The report, which utilizes data from McKinsey & Company, underscores that while average electricity rate growth may appear low, the impact on low-income households is substantial and worsening across a diverse range of states.