Defense and Compliance Attorneys
Nearly 6 million U.S. households have utility debts so severe that they are at imminent risk of being reported to collection agencies, according to new analysis from The Century Foundation, drawing from the University of California Consumer Credit Panel.
Severity of Utility Debt
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Past due balances to utility companies rose 9.7% between April-June 2024 and the same period in 2025, reaching an average of $789 per household.
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Monthly energy bills jumped 12% in the same time frame, driving overdue balances higher and causing distress for families prioritizing these payments alongside mortgages and auto loans.
Causes and Context
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The spike in delinquencies reflects not only rising utility costs but also broader pressures on household budgets, as some families fall behind on other bills, too.
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Increased demand and costs are partly driven by the growth of electricity-hungry AI data centers, while local regulations and energy policies also play a role.
Political and Economic Implications
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President Donald Trump faces political criticism over high utility costs, especially as affordability concerns dominate national discussions.
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The Trump administration points to state-level regulation and higher costs in Democratic states with more renewables, but critics argue national policies are impeding renewable energy generation and contributing to price hikes.
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Consumer debt trends also show rising delinquencies in mortgages, auto loans, and student debt, while broader analyses suggest most families remain financially stable overall.
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