Every year, millions of US households are disconnected from essential electricity service due to nonpayment — often for small debts, with little warning, and during moments of extreme weather. These utility shutoffs are more than just financial setbacks — they pose serious risks to health, housing stability, and overall well-being, and deepen long-standing patterns of energy poverty. And the impacts ripple out: Disconnections harm not only the households affected but also utility operations, public health, and other ratepayers.
New analysis from RMI reveals the scale and severity of this growing crisis. Despite gaps in reporting, millions of utility shutoffs have been reported in the past several years. In 2023 alone, nearly 2 million disconnections were reported across just 22 states and Washington, D.C., while total arrears ballooned to $20 billion nationwide.
The burden is not borne equally. Despite affecting millions of households, disconnections are most likely to affect households already struggling with low incomes, poor housing quality, and high energy bills. On average, about 2.5% of residential utility customers in the areas we have data for (22 states and Washington, D.C.) are disconnected each year.
To address this systemic issue, public utility commissions (PUCs) can use a range of policy tools, including targeted shutoff and collection protections for specific populations, establishing affordability programs, and broader reforms that ensure consistent access to electricity. The report outlines a step-by-step roadmap for regulatory action, starting with data transparency and ending with lasting policy change.
