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Texas leads nation in utility shutoffs as electric bills rise, federal report finds

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Texas had more residential electricity shutoffs than any other state in 2024, according to a new federal report that offers one of the clearest national pictures yet of how often households are left in the dark because they cannot pay their bills.

The U.S. Energy Information Administration found that utilities disconnected residential electricity service 13.4 million times nationwide in 2024. Texas accounted for more than 3 million of those disconnections, the highest total in the country.

The report also found Texas had 206,372 residential natural gas disconnections, again the largest state total.

Margo Weisz, executive director of the Texas Energy Poverty Research Institute, said the numbers show that Texas is an outlier. She said Texas residents make up about 9% of the nation’s electricity customers but accounted for 22.5% of all electricity disconnections.

“So we’re seeing a real challenge specifically in Texas where we purport to have very low electricity bills,” Weisz told Texas Public Radio.

Weisz said the problem is especially acute for low- and moderate-income Texans. TEPRI survey data found that half of those households report struggling every month to pay energy bills. Many cut back on basic needs, including food, medicine or school supplies, to keep the lights on.

The pressure is rising as electricity bills climb.

A TEPRI affordability outlook found residential electricity prices in the ERCOT competitive retail market rose by roughly 30% between 2021 and 2025, adding about $35 to $40 a month to a typical low- or moderate-income household’s bill. The group projects another 29% increase from 2025 to 2030, driven largely by transmission and distribution investments.

Those investments are tied in part to Texas’ rapid growth, extreme weather demands, grid hardening after the 2021 winter blackout, and new large electricity users, including data centers, crypto mining and industrial operations.

ERCOT serves about 90% of Texas electric demand, and recent reporting has shown the grid operator is facing a surge of large-load requests as data centers and heavy industry seek power connections.

For customers who are disconnected, Weisz said the burden can deepen. They may have to enter a payment plan, pay overdue balances and fees, or find another retail electric provider — often at less favorable terms.

“Once you’re disconnected, you don’t have sort of the same level of choice in terms of accessing affordable plans,” Weisz said. “So your electricity actually becomes more expensive because you have to get paid up before you can get reconnected again.”

For Texans already limiting air conditioning use during hot weather to avoid higher bills, Weisz said the stakes are about more than household budgets.

“Energy is foundational to our daily life,” she said.

David Martin Davies can be reached at dmdavies@tpr.org and on Twitter at @DavidMartinDavi