Surging Power Costs Force One in Five Americans to Cut Food, Survey Shows

2 min read
Source: CBS News
Surging Power Costs Force One in Five Americans to Cut Food, Survey Shows
Photo: CBS News
TL;DR

A new Consumer Reports survey indicates that rising electricity bills are forcing one in five Americans to reduce grocery spending. Approximately 80% of long-term homeowners report increased costs over the past three years, with 28% seeing hikes between 20% and 49%. Consumers are cutting back on food and discretionary items to prioritize utility payments, while distrust of state regulators grows. The surge is attributed to data center demand, higher fuel costs, and grid upgrades, prompting Consumer Reports to launch a bill-analysis initiative.

Key points

  • Consumer Reports surveyed over 2,000 adults, finding that 20% have cut grocery budgets to afford electricity.
  • Nearly 80% of residents in the same home for three years report higher bills, with 28% seeing increases of 20-49%.
  • Federal data shows electricity prices in major U.S. cities have risen 14% over the last three years.
  • Consumers blame utility profit motives and data center expansion for rising costs, leading to widespread distrust of regulators.
  • Consumer Reports launched 'Power Smarter' and a 'Bill Decoder' tool to help households analyze charges and advocate for lower rates.

Background

This follows earlier reports on utility mergers and rate freezes, such as Virginia Governor Abigail Spanberger’s demands for rate stability and bill credits in the NextEra-Dominion merger. The current crisis reflects broader trends where data center demand and grid upgrades drive up residential costs, exacerbating affordability issues for fixed-income households.

How outlets are covering it

CBS News and WRAL emphasize the direct impact on food budgets and the launch of Consumer Reports’ advocacy tools. The New York Times highlights the human toll through detailed accounts of families in Oklahoma facing disconnection risks due to extreme heat and high bills, noting that one in six U.S. households are behind on utility payments. WRAL also notes local efforts like 'Electrify the Triangle' to help residents navigate bills and rebates, while CBS News focuses on national distrust of regulators and the role of data centers in driving demand.

Why it matters

Rising electricity costs are reshaping household budgets, forcing trade-offs between essential services and food. This trend is intensifying political distrust and influencing voter priorities ahead of midterm elections, as families struggle with compounding energy, fuel, and food expenses.

What to watch

Consumer Reports will use anonymized bill data from its 'Bill Decoder' initiative to analyze national and state-level price trends. State regulators in North Carolina and other regions will decide on proposed rate increases, while advocacy groups push for clearer billing practices and expanded assistance programs for vulnerable households.

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