US Families Face Huge Electricity Bills as Energy Costs Soar Amid Policy Changes
January 11, 2026
Millions of Americans are struggling with rising energy bills. Kristy Hallowell, from Greenwood Lake, New York, lost her job and saw her electricity bill triple to $1,800 a month. Unable to pay, her gas and electricity were cut off. She and her family lived six months using a generator. Though electricity was restored through help from a local non-profit, her gas remains off and utility debt totals about $3,000. According to a recent report, nearly 1 in 20 US households risk having utility debts sent to collections this winter, with overdue debts rising 3.8% recently.
Electricity prices have jumped 6.9% in November compared to the previous year, much faster than inflation. Despite claims by President Trump that energy costs are falling, Americans face higher bills amid surges in natural gas prices and policy rollbacks on clean energy. The Trump administration paused offshore wind projects, which experts say could drive bills even higher.
Laurie Wheelock, an advocate for low-income utility users in New York, says unpaid utility debts have soared from $400-$900 pre-pandemic to amounts over $6,000 now. Winter heating costs are expected to rise 9.2% due to rising fuel prices and cold weather.
Another factor pushing prices up is energy demand from expanding AI data centers run by tech giants like Alphabet and Amazon. These centers consume huge electricity, pushing the grid’s costs higher.
Some state officials, like Virginia's governor-elect, are pushing for large data centers to pay their fair share of power costs. Meanwhile, the federal government blames external factors like Biden's policies and interest rates for high costs.
Solar energy helps some, like Ibrahim Awadallah in North Carolina, who lowered bills with solar panels. Still, he worries proposed data centers near his home could hike prices again.
Energy experts warn that relief for consumers will be slow, and high residential energy prices are expected to persist for months.
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Tags:
Energy prices
Electricity Bills
Utility Debt
Us Households
Trump administration
Clean energy
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