Electric Utility Disconnections

January 31, 2023 R47417

Electric Utility Disconnections
January 31, 2023
When an electricity customer does not pay their electricity bill in full and on time, a process
begins which can culminate in disconnection. Disconnections are closely related to electricity
Ashley J. Lawson
affordability, which has long been a topic of congressional interest. This interest increased during
Analyst in Energy Policy
the Coronavirus Disease 2019 (COVID-19) pandemic. Proposals to address electricity

affordability and disconnections were included in multiple pandemic relief bills introduced
Claire Mills
during the 116th Congress, but none was enacted. The 117th Congress enacted pandemic relief
Research Assistant
legislation that does, in part, provide funding to low-income customers to help pay for electricity

bills. The 117th Congress also provided funding to existing programs, such as the Low Income
Home Energy Assistance Program and the Weatherization Assistance Program, that provide

assistance to customers who may be facing affordability challenges. Additionally, the 117th
Congress passed legislation aimed at promoting energy efficiency, electrification, and renewable energy, all of which could
potentially promote energy affordability in the long term.
In the early part of the pandemic, approximately 88% of residential electricity customers were protected temporarily from
disconnection by state-issued disconnection moratoria or voluntary utility practices. By the end of 2021, nearly all these
pandemic-related moratoria had expired, and disconnections for nonpayment resumed across the country. Observers expect
disconnections will continue to increase as customers and utilities deal with arrearages accumulated when moratoria were in
effect. Increased energy prices since 2021—especially for natural gas, a key input to electricity costs—add to affordability
challenges.
Researchers estimate that approximately 1% of households are disconnected each year. Broader measures of energy
insecurity (e.g., foregoing other necessary expenses like food or medicine) are higher, with approximately 30% of American
households experiencing some form of energy insecurity. Black and Hispanic households appear more likely to be
disconnected than non-Hispanic White households, even when accounting for the rates at which they receive disconnection
notices. Comprehensive national data on disconnections do not exist currently, complicating analysis and policymaking in
this area. In December 2022, Congress directed the U.S. Energy Information Administration to begin collecting national data
on disconnections.
In the 117th Congress, some Members supported universal bans on disconnections, identifying electricity access as a basic
human right. Others proposed narrower approaches, such as federal funding to cover arrearages accumulated during the
pandemic. Another approach is to increase federal data collection in this area, which could potentially support future
policymaking to address disconnections. The House Energy and Commerce Committee has conducted some oversight
activities in this area.
Disconnections touch on multiple policy issues the 118th Congress might consider. Cost allocation is one. This issue concerns
who should pay for costs associated with late payments and disconnections: the customer who did not pay, other customers of
the same utility, utility shareholders (for investor-owned utilities), federal taxpayers, or some combination? Another issue is
equity. Given that some racial and ethnic groups appear to be disconnected more often than others, are policy measures
needed to address any inequalities in the disconnection process and existing financial assistance programs? A third issue is
federalism. Current law and policy give state and local regulators essentially all authority regarding disconnection policies
and practices. Any national policy might require a change in this framework.
Additional policy areas involve more uncertainty, because they are driven by current conditions in the energy system and it is
unclear how these conditions may change over time. Climate change is one such area. Climate change increases factors (e.g.,
temperatures, extreme weather) that can increase electricity costs for some customers. Whether and how climate change may
ultimately affect electricity affordability and disconnections is not well understood. A second uncertain policy area is the
effects of the COVID-19 pandemic. Economic impacts and policy responses to the pandemic appear to have changed
affordability and disconnections since 2020. On the one hand, levels of energy insecurity and rates of disconnection
decreased in 2020 when policy support was strongest. On the other hand, the cessation of that support may lead to an increase
in disconnections. Energy prices have increased in response to the pandemic, the war in Ukraine, and other factors. If higher
energy prices persist, disconnections could increase.
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Electric Utility Disconnections

he Coronavirus Disease 2019 (COVID-19) pandemic raised interest in electric utility
disconnections—customers losing their power when they do not pay their bills. In the
T early part of the pandemic, approximately 88% of residential electricity customers were
protected temporarily from disconnection by state-issued disconnection moratoria or voluntary
utility practices.1 By the end of 2021, nearly all these pandemic-related moratoria had expired,
and disconnections for nonpayment resumed across the country.2
Disconnections are closely related to electricity affordability, which has long been a topic of
congressional interest. Some existing federal programs address affordability by providing
financial support directly to individuals or utilities for purposes of covering utility expenses,
thereby avoiding disconnection. Those programs are mentioned briefly in this report, but not
discussed at length.
This report covers disconnections of residential customers for nonpayment. Residential electricity
customers can lose their power for other reasons (e.g., safety, preventative power shutoffs), but
those are not discussed herein. Additionally, disconnections for non-residential customers (e.g.,
businesses) are not discussed. This report provides information on the frequency of utility
disconnections for residential customers, discusses existing federal policy related to utility
disconnections and affordability, summarizes legislation introduced and enacted in the 116th and
117th Congresses aimed at reducing utility disconnections, and discusses potential policy
considerations for the 118th Congress. This report focuses on electric utilities and does not cover
disconnections from other utility services (e.g., natural gas, drinking water), though some issues
and policies may apply to these other services.
Background
Energy Burden and Energy Insecurity
Energy burden is the percentage of gross household income spent on energy costs (electricity,
natural gas, and other energy services combined) and can be higher for households with low
income, high energy costs, or both. The average American household spends 3.1% of their
income on energy bills, but low-income households spend 8.1% of their income on energy bills.3
In addition, the median energy burden for Black households is 43% higher than non-Hispanic
White households, and Hispanic households have an energy burden that is 20% more than non-
Hispanic White households.4 In 2020, more than 30.6 million households experienced a high
energy burden in America, defined by experts as greater than 6% of income.5 Of these 30.6

1 CRS estimated the number of residential electricity customers covered by mandatory and voluntary pandemic-related
disconnection moratoria using utility-reported customer data and moratorium information from utility websites and
state regulatory documents. For more information, see CRS Report R46401, COVID-19 Electric Utility
Disconnections, by Richard J. Campbell and Ashley J. Lawson.
2 National Association of Regulatory Utility Commissioners (NARUC), “Map of Disconnection Moratoria,” updated
September 9, 2021.
3 Ariel Drehobl, Lauren Ross and Roxana Ayala, How High Are Household Energy Burdens? An Assessment of
National and Metropolitan Energy Burden Across the United States, American Council for an Energy-Efficient
Economy (ACEEE), September 2020, p. iii.
4 Ibid.
5 Ibid. The ACEEE report uses the definition of a high energy burden calculated by the Applied Public Policy Research
Institute for Study and Evaluation (APPRISE). APPRISE used the formula that housing should not cost more than 30%
of a household’s income, and energy costs should not be more than 20% of the housing cost. Applied Public Policy
Research Institute for Study and Evaluation, LIHEAP Energy Burden Evaluation Study, U.S. Department of Health and
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million households, half have a severe energy burden, defined by the American Council for an
Energy Efficient Economy (ACEEE) as greater than 10% of their income being dedicated strictly
to energy bills.6 Energy burdens vary across the country, as shown in Figure 1. Low-income
energy burdens are consistently higher than median energy burdens by region (see red values
compared to purple values in the figure). The largest differences between the median energy
burden and the low-income energy burden are in the Mid-Atlantic and New England, with low-
income energy burdens approximately three times higher than household energy burden overall.
Figure 1. Median Household Energy Burden by Region and Income Level

Source: Ariel Drehobl, Lauren Ross and Roxana Ayala, How High Are Household Energy Burdens? An Assessment of
National and Metropolitan Energy Burden Across the United States, American Council for an Energy-Efficient
Economy, September 2020, p. 14.
Notes: Purple values in parentheses show median energy burden across all households. Red values show median
energy burden for low-income households, defined in this study as below 200% of the federal poverty line.
Alaska and Hawaii are in the Pacific region.
High energy burden can lead to energy insecurity. Energy insecurity is the lack of access to
consistent energy sources due to either high energy costs, low income in the household, or both.
The U.S. Energy Information Administration (EIA)7 uses the following measures to assess energy
insecurity in the United States: reducing or forgoing basic necessities (e.g., medical care, food) to
pay an energy bill, keeping the home at unhealthy or unsafe temperatures in order to reduce
energy bills, or receiving a disconnection notice for bill nonpayment. According to EIA, 34
million households (27%) reported at least one of these forms of energy insecurity in 2020, as
shown in Figure 2.8

Human Services, July 2005, p. 12.
6 Ariel Drehobl, Lauren Ross and Roxana Ayala, How High Are Household Energy Burdens? An Assessment of
National and Metropolitan Energy Burden Across the United States, American Council for an Energy-Efficient
Economy, September 2020, p. ii.
7 For background on the U.S. Energy Information Administration (EIA), see CRS Report R46524, The U.S. Energy
Information Administration, coordinated by Ashley J. Lawson.
8 EIA, Today in Energy, “In 2020, 27% of US Households Had Difficulty Meeting Their Energy Needs,” April 11,
2022, https://www.eia.gov/todayinenergy/detail.php?id=51979.
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Figure 2. U.S. Household Energy Insecurity in 2015 and 2020

Source: U.S. Energy Information Administration, https://www.eia.gov/todayinenergy/detail.php?id=51979.
Notes: Data from the Residential Energy Consumption Survey, conducted approximately every five years.
Disconnection Process and Regulation
When a residential electricity customer does not pay their electricity bill in full and on time, a
process begins which can culminate in the customer’s power being shut off, a disconnection. The
details of the disconnection process are determined by state and local regulations. As a result,
disconnection policies vary among the nearly 3,000 electric utilities in the country.9 Processes
typically follow a common sequence of events. First, the utility contacts the customer, usually
several times over a period of up to several months, to attempt to receive payment. Any unpaid
amount accrues during this time as an arrearage. Utilities may assess late fees as well. Customers
may be able to enter into a payment plan with the utility to pay back the arrearages, including late
fees, over a period of time (e.g., a year). Some customers may qualify for financial assistance
from a utility-administered program, a state-administered program, or both. If customers are
unable to pay their bill (with or without financial assistance) or enter into a payment plan, the
utility may disconnect the customer. Utilities will reconnect the customer after receiving payment
and (if applicable) a reconnection fee.
Federal Role
The federal role in utility disconnections is limited. Most aspects of electricity distribution are
overseen by state or local regulators (e.g., state public utility commissions) pursuant to the
Federal Power Act (16 U.S.C. §§791 et seq.).10

9 The number of distribution utilities is from U.S. Energy Information Administration (EIA), “Investor-Owned Utilities
Served 72% of U.S. Electricity Customers in 2017,” August 15, 2019.
10 For a discussion of the boundaries of federal jurisdiction for electricity, see CRS In Focus IF11411, The Legal
Framework of the Federal Power Act, by Adam Vann. Distribution refers to the delivery of electricity to consumers,
and is widely considered to be the endpoint of the electricity system (which begins with electricity generation, followed
by transmission). Electric distribution utilities act as natural monopolies, under a regulatory compact implemented by
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Congress has identified multiple preferred utility policies (standards) under the Public Utility
Regulatory Policies Act of 1978 (PURPA; P.L. 95-617). One such standard relates to termination
of electric service (i.e., disconnection). The standard encourages the following requirements
regarding disconnection:
 Utilities may not disconnect customers without giving “reasonable prior notice”
and allowing customers “a reasonable opportunity to dispute the reasons for such
termination.”
 Utilities may not disconnect customers who are unable to pay for electricity
service (or can only pay in installments) “during any period of time when
termination of service to an electric customer would be especially dangerous to
health.”
 Disconnection procedures must take into account “reasonable provisions for
elderly and handicapped consumers.”11
Details of how these requirements are implemented vary by state, as discussed below.
States’ Role
Notwithstanding the general procedures for disconnection outlined above, many states have
adopted regulations prohibiting utilities from disconnecting certain customers in certain
conditions, in line with the PURPA standard. Some disconnection prohibitions cover households
with someone of a certain age living in them (e.g., an adult older than 65 or a child). Other
policies prohibit disconnection when certain income thresholds are met, when a resident qualifies
for energy assistance, or when a resident has a medical condition. Many states use more than one
of these criteria in their disconnection policies.12 Some states protect these customers from
disconnection at all times of the year, and some states protect them only during certain times,
usually based on temperature.
As shown in Figure 3, state prohibitions on disconnection cover cold times of the year more than
hot times. According to data compiled by the Low Income Home Energy Assistance Program
(LIHEAP) Clearinghouse, via a contract with the Department of Health and Human Services, 32
states prohibit disconnections for at least some customers during the winter months (the District
of Columbia is included as a state for this purpose). Of these, four prohibit disconnections during
winter and summer. One additional state (Arizona) prohibits disconnections during the summer
months only. Some states prohibit disconnections when certain temperature thresholds are met.
These states may or may not also implement seasonal disconnection prohibitions. The figure does
not distinguish whether a state has one or both kinds of prohibitions in place. States usually
define “cold” temperatures as 32°F, but some states set lower temperatures (e.g., 20°F in Iowa) or
higher temperatures (e.g., 35°F in Kansas). States usually define “hot” temperatures as 95°F, but
some states set higher temperatures (e.g., 105°F in Delaware) or base it on other criteria (e.g., a
National Weather Service heat warning in Louisiana).

each state (including the District of Columbia, and U.S. territories). Briefly, regulatory compacts exempt distribution
utilities from competition while requiring utilities to provide universal service (i.e., they provide electricity to all
customers) and subject themselves to regulation by state or local authorities.
11 16 U.S.C. §2625(g).
12 A summary of different state disconnection policies is available at https://liheapch.acf.hhs.gov/Disconnect/
SeasonalDisconnect.htm. Typically, policies are set by state regulators and may not apply to all utilities. Specifically,
publicly owned utilities and electric co-operatives in a state may have different policies.
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Figure 3. State Disconnection Policies

Source: CRS analysis of data from LIHEAP Clearinghouse, https://liheapch.acf.hhs.gov/Disconnect/
SeasonalDisconnect.htm.
Notes: Includes the District of Columbia. Specific date ranges for seasonal protections vary, but typically cover
three or more months. Specific temperature thresholds vary as well. Some states implement both seasonal and
temperature-based disconnection prohibitions. Such states are represented more than once in this figure.
Electricity costs tend to be highest in most of the country during summer months when air
conditioning demand peaks. As a result, disconnection prohibitions that apply during cold periods
but not hot periods may not be well suited for addressing electricity affordability.
COVID-19 Disconnection Moratoria
In response to the COVID-19 pandemic, many utilities and their regulators implemented
moratoria on disconnections in certain cases. Under the moratoria, utilities were prohibited from
disconnecting certain customers for nonpayment, though the policies generally allowed
disconnections for safety reasons to continue. The policies were meant to both improve living
conditions for individuals experiencing financial hardship due to the pandemic, and limit close
contact (and potential COVID-19 spread) between utility workers and customers.13
Approximately 88% of U.S. residential customers were covered by a moratorium for at least
some portion of the pandemic.14 Most states had lifted their pandemic-related moratoria by the
end of 2021. Anecdotal evidence suggests that disconnections increased after the end of
pandemic-related moratoria, at least in some parts of the country.15

13 For example, the Kentucky Public Service Commission noted “disconnection processes ordinarily lead to in-person
contact and, as such, pose a significant health risk due to the potential for transmission of COVID-19.” Kentucky
Public Service Commission, Order in the Matter of Electronic Emergency Docket Related to the Novel Coronavirus
COVID-19, p. 3, https://psc.ky.gov/pscscf/2020%20Cases/2020-00085/20200316_PSC_ORDER.pdf.
14 CRS estimated the number of residential electricity customers covered by mandatory and voluntary pandemic-related
disconnection moratoria using utility-reported customer data and moratorium information from utility websites and
state regulatory documents. For more information, see CRS Report R46401, COVID-19 Electric Utility
Disconnections, by Richard J. Campbell and Ashley J. Lawson.
15 See, for example, Will Wade and Mark Chediak, “‘Tsunami of Shutoffs’ Looms with 1 in 6 Late on U.S. Energy
Bills,” Bloomberg, August 23, 2022; Jake Zuckerman, “AEP Cut 164,000 Ohioans’ Power for Nonpayment Last Year,
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Some disconnection moratoria also prohibited the assessment of late fees or other charges that
customers would normally owe in cases of nonpayment. For example, Colorado’s governor
issued an executive order calling on utilities to stop disconnections and “waive reconnection fees
and suspend accrual of late payment fees” for certain customers.16 Other disconnection moratoria
did not include such provisions.
In general, pandemic-related disconnection moratoria were not bill forgiveness programs. In other
words, the policies allowed customers to keep electricity access in cases of nonpayment, but did
not remove the obligation to pay. As a result, some customers have accrued electricity bills
covering many months. The National Association of Regulatory Utility Commissioners
(NARUC) noted (emphasis added):
There is a growing consensus among state PUCs [public utility commissions], the private
utility sector, and key advocates that the blanket moratoria policies enacted early on in the
pandemic response could have been more strategically implemented. Moratoria policies
could be more exclusive to low- and moderate-income customers with caveats that
customers in arrears need to work with their utility on repayment plans to qualify.
Customers and utilities alike were unprepared for the massive arrearage burden stemming
from blanket moratoria policies prohibiting disconnections. 17
NARUC identified more explicit communications and greater outreach regarding payment plans
as two efforts that could have prevented the observed accumulation of past due bills.18
As of January 2023, no federal agency tracked arrearages in a comprehensive way at the national
level. However, according to NARUC, some states began tracking arrearages during the
pandemic.
Experts have identified an increase in arrearages since the start of the pandemic. For example, an
analysis of Massachusetts utilities found that the total amount in arrears among all customers
increased from $575 million in March 2020 to $794 million in June 2021. By June 2021, 460,149
customers (17.4% of Massachusetts households) were more than 90 days past due on their utility
bill, compared to 362,800 (13.7% of Massachusetts households) such customers in March 2020.19
The National Energy Assistance Directors’ Association (NEADA) estimated that nationwide
arrearages for electricity and heating bills combined increased from $8.1 billion at the end of
December 2019 to $16.1 billion as of August 2022.20
Under current law, state and local utility regulators have the authority to decide how to address
utility arrearages accrued during the pandemic. They could require utilities to write off this debt
(where financially possible), raise rates from other utility customers to cover the cost, collect the

More Than Any Other Utility,” Ohio Capital Journal, July 7, 2022; Hannah LaClaire, “As Energy Prices Rise,
Thousands of Mainers at Risk of Losing Power,” Portland Press Herald, May 22, 2022; Alicia Inez Guzmán and
Luciana Perez Uribe Guinassi, “New Mexico Confronts a Deluge of Pandemic-Related Utilities Shutoffs,” Searchlight
New Mexico, April 2, 2022.
16 Governor Jared Polis, Order Limiting Evictions, Foreclosures, and Public Utility Disconnections and Expediting
Unemployment Insurance Claim Processing to Provide Relief to Coloradans Affected by COVID-19, March 20, 2020.
17 National Association of Regulatory Utility Commissions (NARUC), Lessons Learned from the Ongoing Response to
the COVID-19 Crisis, October 2021, p. 20.
18 Ibid., p. 21.
19 National Consumer Law Center, More Can and Must Be Done to Prevent Utility Consumers from Losing Service
Due to Mounting COVID-Driven Arrearages in Massachusetts and Other States, November 2021.
20 National Energy Assistance Directors Association, Press Release: Families Drowning in Utility Debt—Families Owe
More Than $16 Billion, November 7, 2022, https://neada.org/wp-content/uploads/2022/11/20millionbehindPR.pdf.
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debt from the customers who owe it, shift costs to the federal government through existing
financial assistance programs (discussed below), or some combination of these options.21
How Many Americans Are Disconnected?
Unlike some other electricity information (e.g., rates, sales), the federal government has not
collected comprehensive information about utility disconnections.22 As a result, available
estimates are based on consumer surveys or analysis of selected groups of utilities, and may not
be fully representative of the number of disconnections occurring nationwide.
In an attempt to answer the question, “How many Americans are disconnected?” CRS identified
four organizations that have extensively studied utility disconnections. Their most recent findings
are summarized in Table 1 and discussed in more detail below.
Table 1. Major Utility Disconnection Datasets
Estimated
Number of
Organization
Disconnections
Time Period
Sample Size
Notes
U.S. Energy
12.36 mil ion
Jan 2020 to
18,500
Data on actual
Information
disconnection
December 2020
households—
disconnections is
Administration
notices
nationally
not col ected at this
Residential Energy
representative
time. Data also
Consumption
sample
available for
Survey
previous years.
U.S. Census Bureau
731,000 nationwide
January 2021 to
An integrated
Racial breakdown
American Housing
(includes utilities
December 2021
national longitudinal
data available.
Survey
other than
sample of
Historical data
electricity)
households and an
available for the
integrated
years 2017 and
metropolitan
2013.
longitudinal sample
Center for
5.7 mil ion
January 2020 to
Utilities in 33 states
Study covered
Biological Diversity
cumulative
October 2022
and DC
utilities with
nationwide
information
reported to state
regulators.
Indiana University’s
1.5 mil ion
May 2020 to May
4 separate surveys
Survey administered
Energy Justice Lab
nationwide
2021
of 1,000 individuals
to low-income
from low-income
households at or
households each,
below 200% of the
nationally
Federal Poverty
representative
Line. Breakdowns of
data by race also
available.
Source: CRS analysis of U.S. Energy Information Administration, Residential Energy Consumption Survey data,
https://www.eia.gov/consumption/residential/data/2020/; U.S. Census Bureau, American Housing Survey,
https://www.census.gov/programs-surveys/ahs/data.html; Center for Biological Diversity, Energy and Policy

21 Additional discussion of the options available for recovering costs of pandemic-related arrearages is available at
Herman K. Trabish, “Utility Customers Owe Up To $40B in COVID-19 Debt, But Who Will Pay It?,” Utility Dive,
December 3, 2020.
22 As discussed in the section “Options for Congress,” in December 2022, Congress directed EIA to begin collecting
monthly disconnection data. These data were not available as of the cover date of this report.
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Institute, and BailoutWatch, Powerless in the United States: How Utilities Drive Shutoffs and Energy Injustice, January
2023; Indiana University’s Energy Justice Lab, “Survey of Household Energy Insecurity in Time of COVID:
Preliminary Results of Wave-4 and Waves 1 Through 4 Combined,” July 5, 2021.
Residential Energy Consumption Survey
EIA conducts the Residential Energy Consumption Survey (RECS) periodically to assess
residential energy consumption, including housing characteristics such as building stock,
consumption patterns, and demographics.23 RECS is administered approximately every five years.
For 2020, the year of the last RECS, a nationally representative sample of around 18,500
households were surveyed to assess critical trends in household energy consumption.
In 2020, EIA found that 12.36 million households received a utility disconnection notice.24 At this
time, RECS does not collect data on utility disconnections specifically.
Researchers have used data from the RECS combined with other surveys to estimate the number
of utility disconnections that have occurred nationally. For example, Graff and Carley used RECS
data to estimate that 2 million households were disconnected for nonpayment in 2015.25 Laird and
Hernandez estimated that more than 3 million households were disconnected in 2015 by assessing
the number of Americans reported being unable to use their heating or cooling equipment due to
nonpayment in the 2015 RECS data.26
American Housing Survey
The U.S. Census Bureau, on behalf of the Department of Housing and Urban Development,
conducts surveys every two years of the American public on a wide range of housing topics. Data
from the 2021 survey found that 731,000 households had their utilities disconnected, though the
report does not provide information about electricity disconnections specifically.27 In other words,
this estimate might include disconnections from other utility services.
Center for Biological Diversity
The Center for Biological Diversity tracked disconnections throughout the pandemic, finding that
there were at least 5.7 million disconnections cumulatively from January of 2020 through October
2022.28 Their data have been reported in a series of three reports between September 2021 and
January 2023. Their analysis uses disconnection data collected by state PUCs throughout the
pandemic. Not all states collected data, so nationwide values might be higher. They found
shutoffs increased 79% from 2020 to 2021, following the end of most pandemic-related

23 Residential Energy Consumption Survey (RECS) data are available at https://www.eia.gov/consumption/residential/
index.php.
24 Residential Energy Consumption Survey, “Household Energy Insecurity HC 11.1,” Energy Information Agency,
May 2022, p. 1, https://www.eia.gov/consumption/residential/data/2020/hc/pdf/HC%2011.1.pdf.
25 Michelle Graff and Sanya Carley, “Covid-19 Assistance Needs to Target Energy Insecurity,” Nature Energy, vol. 5,
May 2020, pp. 352-354.
26 Diana Hernández and Jennifer Laird, “Surviving a Shut-Off: U.S. Households at Greatest Risk of Utility
Disconnections and How They Cope,” American Behavioral Scientist, 2021, vol. 66(7), pp. 856–880.
27 All data for the 2021 American Housing Survey can be found at https://www.census.gov/programs-surveys/ahs/
data.2021.List_1739896299.html#list-tab-List_1739896299.
28 Center for Biological Diversity, Energy and Policy Institute, and BailoutWatch, Powerless in the United States: How
Utilities Drive Shutoffs and Energy Injustice, January 2023.
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disconnection prohibitions.29 They found disconnections also increased 29% in the first ten
months of 2022 compared to the same months in 2021.30
Indiana University’s Energy Justice Lab
The Energy Justice Lab at Indiana University completed multiple nationally representative
surveys to assess the impact of disconnections on Americans. The survey sample was 1,000
people, and administered to households at or below 200% of the federal poverty line. Researchers
conducted four waves of the survey between May 2020 and May 2021. Each survey wave asked
about energy expenses, household behavior and activities since the onset of the pandemic. The
waves differed in the number of months they covered, ranging from one month (May 2020) to
five months (September 2020 – January 2021).31
These researchers estimated that between May 2020 and May 2021, 1.5 million low-income
households had their electricity disconnected. In addition, the rate of utility disconnections was
consistent between May 2020 and May 2021 at close to 3% of respondents (Figure 4).
Figure 4. U.S. Energy Insecurity Among Low-Income Households
May 2020–May 2021

Source: Indiana University’s Energy Justice Lab, “Survey of Household Energy Insecurity in Time of COVID:
Preliminary Results of Wave-4 and Waves 1 through 4 Combined,” July 5, 2021.
Notes: Energy insecurity is defined in this study as inability to pay a bil , receiving a disconnection notice, or
being disconnected. Low-income households are defined in this study as households with incomes at or below
200% of the federal poverty line.

29 Center for Biological Diversity, BailoutWatch, and Tiger Moth LLC, Powerless in the Pandemic 2.0: Electric
Utilities Are Still Choosing Profits over People, April 2022.
30 Center for Biological Diversity, Energy and Policy Institute, and BailoutWatch, Powerless in the United States: How
Utilities Drive Shutoffs and Energy Injustice, January 2023.
31 Details about each wave of the Indiana University Energy Justice Lab energy insecurity surveys are in the
preliminary reports for each wave, available at https://energyjustice.indiana.edu/projects/household-energy-
insecurity.html.
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Disconnection Data by Racial and Ethnic Group
Energy burden, energy insecurity, and utility disconnections affect some racial and ethnic groups
more than others. The share of Black households experiencing energy insecurity is about twice as
high as that for White households (52% compared to 27% in 2020).32 Similarly, the share of
Hispanic or Latino households experiencing energy insecurity is about twice as high as that for
households that are not Hispanic or Latino (47% compared to 25% in 2020).33
Data from the American Housing Survey for 2021 (Table 2) indicates that Black households were
14% of the population that year and 34% of the disconnections, and Hispanic households were
12% of the population and 15% of the disconnections.
Table 2. U.S. Utility Disconnections by Race of Householder, 2021
Thousands of housing units

Total Households
Disconnected Households
Race
Count
Percent by Race
Count
Percent by Race
White
99,310
77%
429
59%
Hispanic
16,317
12%
109
15%
Non-Hispanic
82,992
65%
320
44%
Black
18,128
14%
252
34%
Native American or Alaska
1,589
1%
—
—
Native
Asian
6,948
5%
—
—
Pacific Islander
470
<1%
—
—
Two or More Races
2,058
2%
—
—
Total
128,504
100%
731
100%
Source: U.S. Census Bureau American Housing Survey, “2021 National Delinquent Payments and Notices—All
Occupied Units” American Housing Survey Table Creator, https://www.census.gov/programs-surveys/ahs/data/
interactive/ahstablecreator.html?s_areas=00000&s_year=2021&s_tablename=TABLES08&s_bygroup1=9&
s_bygroup2=1&s_filtergroup1=1&s_filtergroup2=1.
Notes: Blank cells indicates data that did not meet American Housing Survey publication standards or were
withheld to avoid disclosure. Thus, disconnected households shown do not sum to totals. Total households may
not sum to totals because of rounding. Pacific Islander includes Native Hawaiian and other Pacific Islander. The
American Housing Survey considers Hispanic an ethnicity, not a race. Data for Hispanic households of races
other than White are not shown.
Data from Indiana University’s surveys indicates similar findings. Figure 5 shows that low-
income Black, Hispanic, and other non-White households were disconnected at a rate of at least
three times more than low-income White households. In Indiana University’s estimation of low-
income families, 3.2% of White households were disconnected, compared to 9.7% of Black
households, 12.9% of Hispanic households, and 11.3% of households of other racial groups.

32 EIA, “In 2020, 27% of U.S. Households Had Difficulty Meeting Their Energy Needs,” April 11, 2022,
nmjhttps://www.eia.gov/todayinenergy/detail.php?id=51979. In previous years, 11.3% of Black households at or below
150% of the federal poverty level were disconnected, compared to 5.5% of White households at or below the same
level. National Association for the Advancement of Colored People, Lights Out in the Cold: Reforming Utility Shut-Off
Policies as If Human Rights Matter, March 2017, p. 14.
33 EIA, “In 2020, 27% of U.S. Households Had Difficulty Meeting Their Energy Needs,” April 11, 2022,
https://www.eia.gov/todayinenergy/detail.php?id=51979.
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These trends were consistent throughout the four waves of the survey, indicating a persistent
difference in connection rates.
Additionally, Figure 5 shows how non-White low-income households are more likely to be
disconnected, even after accounting for levels of energy insecurity. For example, in Indiana
University’s study, the percentage of responders who could not pay a bill was 2.2 times higher for
Black households compared to White households, and the percentage disconnected was 3.0 times
higher.
Figure 5. U.S. Energy Insecurity Among Low-Income Households by Race
May 2020–May 2021

Source: Indiana University’s Energy Justice Lab, “Survey of Household Energy Insecurity in Time of COVID:
Preliminary Results of Wave-4 and Waves 1 Through 4 Combined” July 5, 2021, https://energyjustice.indiana.edu/
doc/wave_4_report.pdf.
Notes: Energy insecurity is defined in this study as inability to pay a bil , receiving a disconnection notice, or
being disconnected. Racial groups are as reported by the Energy Justice Lab, and may not match racial or ethnic
groupings used in other surveys and analyses. Low-income households are defined in this study as households
with incomes at or below 200% of the federal poverty line.
Summary
The available data suggest three main features of disconnections. First, the scale of the issue is
not precisely known, as there is not currently a centralized reporting system for utility
disconnections for nonpayment. However, millions of Americans are disconnected each year,
potentially up to 1% or so of households. Even more households experience other forms of
energy insecurity. Second, low-income households are at a higher risk for disconnections. Third,
Black and Hispanic households are disconnected from their utilities at a higher rate than non-
Hispanic White households, even after accounting for levels of energy insecurity. Data indicate
that this discrepancy predates the pandemic and persisted throughout the pandemic.
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Federal Assistance
Several federal programs provide financial assistance to cover some portion of electricity bills for
some individuals. Such programs aim to prevent disconnections by providing funds that can be
used to pay electricity bills.
The main federal program providing financial assistance for utility bills is the Low Income Home
Energy Assistance Program (LIHEAP). LIHEAP was established in 1981 and is funded through
annual and supplemental appropriations. Through the program, the federal government makes
annual grants to states, tribes, and territories to administer energy assistance programs for low-
income individuals. LIHEAP does not target electricity bills specifically; program administrators
have discretion in how to use funds. Historically, LIHEAP funds have been used for heating
expenses more than cooling expenses. Additional information about LIHEAP is available in CRS
Report RL31865, LIHEAP: Program and Funding, by Libby Perl.
Congress established additional assistance programs in response to the COVID-19 pandemic.
Specifically, the Consolidated Appropriations Act, 2021 (P.L. 116-260) established the
Emergency Rental Assistance program (ERA) to provide funds to states, localities, and tribes to
provide rental assistance, housing stability services, and energy assistance (including paying
utility arrearages). The American Rescue Plan Act of 2021 (ARPA; P.L. 117-2) provided a second
round of ERA funding. ARPA also established the Homeowner Assistance Fund (HAF) to support
homeowners with housing costs, including utility expenses. Additional information about these
programs is available in CRS Report R46688, Pandemic Relief: The Emergency Rental
Assistance Program, by Grant A. Driessen, Maggie McCarty, and Libby Perl, and CRS Report
R46830, The Homeowner Assistance Fund in the American Rescue Plan Act: In Brief, by Katie
Jones.
The Weatherization Assistance Program (WAP) was established in 1976. Under the program, the
federal government provides grants to states, the District of Columbia, and U.S. territories to
administer weatherization programs for low-income households.34 Weatherization improvements
(e.g., adding insulation) can reduce energy expenses by improving a home’s energy efficiency.
WAP does not target electricity use specifically. For example, some WAP funds may be used for
water heaters and space heating equipment that do not necessarily use electricity. Additional
information about WAP is available in CRS Report R46418, The Weatherization Assistance
Program Formula, by Corrie E. Clark and Lynn J. Cunningham.
Other federal programs and policies provide indirect financial assistance by subsidizing energy
efficiency upgrades or solar installations that serve to lower electricity bills. Some of these
policies target low-income households which, as noted above, have higher energy burdens on
average than other households. Other subsidy programs, such as federal tax credits, are available
more broadly. The extent to which these policies could prevent disconnections depends in part
upon the extent to which individuals having trouble paying their bills can access them. Given the
time it takes to implement efficiency and related measures, these programs may be best suited to
addressing long-term affordability challenges as opposed to short-term challenges or existing
arrearages.
P.L. 117-169, commonly known as the Inflation Reduction Act of 2022 (IRA), established the
Home Owner Managing Energy Savings (HOMES) rebate program to provide rebates for
residential energy efficiency improvements. Low-income households qualify for larger rebates,

34 Additional information about the Weatherization Assistance Program is available at https://www.energy.gov/eere/
wap/about-weatherization-assistance-program.
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up to a few thousand dollars in most cases for single-family homes. The rebate program is to be
administered by state energy offices. IRA also established the High-Efficiency Electric Home
Rebate Program for states and tribes to provide rebates for certain efficiency upgrades or
appliances. Some eligible recipients could potentially replace appliances that use greater amounts
of electricity, thereby lowering bills. For example, the program covers heat pumps, which could
be used to replace air conditioners. Low-income individuals qualify for larger rebates under this
program as well. Any specific improvement cannot qualify for both the high-efficiency electric
home rebate and the HOMES rebate. Additional information about these programs is available in
CRS In Focus IF12258, The Inflation Reduction Act: Financial Incentives for Residential Energy
Efficiency and Electrification Projects, by Martin C. Offutt.
Federal tax credits are available for certain home improvements that could reduce energy use,
including energy-efficient windows, heat pumps, and solar panels. In general, the value of the tax
credits is 30% of the cost of the improvement.35 Individuals with low or no tax liability may not
be able to benefit from this policy.
Legislative Proposals in the 116th and 117th
Congresses
CRS conducted a search of bills on congress.gov addressing utility disconnections introduced in
the 116th and 117th Congresses. The search terms used were “utility disconnection,” “utility
shutoff,” “electricity,” “service disconnected,” “termination service,” “disconnect service,” and
“loss energy service.” Search terms were searched alone or in combination with each other, and
words within terms were searched in proximity to each other.
In the 116th Congress, congressional debate focused on ways to address the pandemic. Three
proposals related to disconnections were included in various pandemic relief bills:
 would have prohibited actions related to debt collection, including
disconnections;
 would have provided financial assistance for housing costs, including utility bills;
and
 would have made pandemic relief funding contingent upon taking action to
prohibit disconnections, where relevant.36
A fourth proposal (in S. 4519) would have authorized $10 billion for grants to states to provide
low-income households assistance with energy bills, including arrearages and reconnection fees
that occurred during the COVID-19 emergency. None of these four proposals were enacted
during the 116th Congress.
Disconnection-related proposals in the 117th Congress generally were less centered on pandemic
relief, although utility expenses were included as eligible expenses in the authorizations for the
Homeowners Assistance Fund and the Emergency Rental Assistance program, both of which
were enacted in 2021. Other proposals in the 117th Congress generally focused on providing

35 Additional details of the energy efficient home improvement tax credit and the residential clean energy credit are
available in CRS Report R47202, Tax Provisions in the Inflation Reduction Act of 2022 (H.R. 5376), coordinated by
Molly F. Sherlock.
36 See, for example, Sec. 110402, Sec. 110202, and Sec. 190701 of H.R. 6800, The Heroes Act, as engrossed in the
House. These provisions were contained in several standalone bills as well.
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funding to customers to cover arrearages, providing funding to utilities to cover arrearages, and
establishing universal bans on disconnections (see Table 3).
Table 3. Legislative Proposals Addressing Disconnections in the 117th Congress
In chronological order of introduction
Short Title (if applicable)
Bill Number
Disconnection-Related Provision
Energy Debt Relief for American
H.R. 551
Would have authorized $10 bil ion in supplemental
Families Act
LIHEAP funding to cover arrearages accrued during
the COVID-19 emergency.
American Rescue Plan Act of 2021
H.R. 1319 / P.L.
Established Homeowner Assistance Fund, and
117-2
allows utility payment assistance as an eligible
expense. Established Emergency Rental Assistance
fund and allows utility payment assistance, including
arrears, as an eligible expense.
Coronavirus Homeowner
H.R. 1710
Would have established a Homeowner Assistance
Assistance Act of 2021
Fund and allow utility payment assistance as
permissible use of funds.
n/a
H.Res. 457
Would have resolved that electricity is a basic
human right, and calls for a universal ban on
disconnections.
Maintaining Access to Essential
H.R. 4979 / S. 1783
Would have authorized a forgivable loan program
Services Act of 2021
($5 bil ion for publicly owned electric and $8 bil ion

for investor-owned electric, natural gas, and
propane utilities) for utilities to cover arrearages
during the COVID-19 public health emergency and
the two years fol owing its end. Utilities would have
had to pay back loans if they disconnect customers.
n/a
H.Res. 1364
Would have resolved that electricity is a basic
human right and should not be denied based on
ability to pay. Called for a ban on disconnections.
Called for a federal database of disconnection data,
including length of disconnections, amount of
arrearages, demographics, and income levels.
Heating and Cooling Relief Act
H.R. 6437 / S. 3535
Would have amended LIHEAP, including to require
that households receiving funds cannot be charged
late fees or disconnected for a period of time after
receiving assistance. Would also have allowed
LIHEAP funding to cover arrearages.
Preventing Unnecessary Deaths
H.R. 9300
Would have amended PURPA to encourage utility
During Life-Threatening Events Act
regulators to consider disconnection prohibitions
during extreme heat or cold weather events.
Consolidated Appropriations Act,
H.R. 2617 / P.L.
Accompanying explanatory statement directs U.S.
2023
117-328
Energy Information Administration to col ect
monthly data on disconnections.
Source: CRS analysis of bil s in congress.gov.
Notes: LIHEAP = Low Income Home Energy Assistance Program; PURPA = Public Utility Regulatory Policies
Act of 1978 (P.L. 95-617).

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Policy Considerations
Utility disconnections, and policies to address them, raise policy issues that may be of interest to
Congress.
Cost Distribution
Nonpayment creates a cost for utilities, so policies to address nonpayment, arrearages, and
disconnections may consider how these costs are distributed. In general, utility costs are fully
recovered through rates. In other words, utility costs are ultimately borne by consumers. This
general principle applies to any utility cost, including arrearages.
One option is to negotiate payment plans between utilities and customers, so that arrearages can
be paid off over time while maintaining electricity service. This approach does not relieve a
customer from their debt burden, but gives them additional time to pay it off and avoids
disconnection. This approach aligns with the cost causation principle of utility ratemaking, in that
the customers in arrears would be the ones responsible for paying back the utility. This approach
does not address factors that contribute to high energy burdens and lack of electricity affordability
in the first place, creating the risk that the same customers would fall behind on bill payments at a
later date.
Another option is for utilities to forgive bills for customers in arrears. Arrearage costs could then
be distributed to the utility, in the form of debt. As noted by one group, the options for
distributing the costs of arrearages to different groups “will involve balancing the need for
customer bill relief with saddling utilities, in particular rural cooperatives and small energy and
water utilities, with additional debt.”37 Alternatively, arrearage costs could be distributed to other
customers in the form of higher rates. Utility regulators might need to consider how separate
factors (e.g., increased interest rates, increased electricity prices)38 are putting financial pressure
on utilities and consumers, and whether additional cost increases to cover arrearages would pose
affordability or other challenges to a wider set of electricity customers.
Another option is to shift arrearage costs to federal taxpayers by, for example, providing grants to
utilities for that purpose. This approach could relieve financial hardship caused (in part) by the
pandemic, but would need to be balanced by consideration of other areas within the federal
budget. This approach has been supported by the National Association of State Utility Consumer
Advocates (NASUCA):
Ultimately, to minimize the potential rate increases that retail consumers may face in the
future and to also help maintain financial stability for utilities, Congress should consider
providing direct funding to utilities with the instruction that the funding can be accessed
and used only to reduce consumer arrearages through credits directly to consumer bills.39

37 National Governors Association (NGA), Memorandum on State Utility Disconnection Moratoriums and Utility
Affordability, undated, p. 2. The NGA memorandum covered energy, water, and telecommunications utilities, while
this report covers electric utilities only.
38 For discussion of some factors behind increasing electricity rates, see EIA, “During 2021, U.S. Retail Electricity
Prices Rose at Fastest Rate Since 2008,” March 1, 2022, and EIA, “Winter Fuels Outlook, October 2022,” October 12,
2022.
39 Letter from National Association of State Utility Consumer Advocates to The Honorable Nancy Pelosi, Speaker; The
Honorable Kevin McCarthy, Minority Leader; The Honorable Mitch McConnell, Majority Leader; and The Honorable
Charles Schumer, Minority Leader, May 22, 2020, https://nasuca.org/wp-content/uploads/2020/05/NASUCA-Letter-to-
Congress-on-COVID-19-5-22-20.pdf.
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Grants to utilities would be different than existing programs such as LIHEAP that provide
financial assistance to customers. Some customers that qualify for LIHEAP assistance are not
aware that they qualify, or they may face hurdles to seeking assistance, so they do not access
LIHEAP funds. Grants to utilities could support these customers while potentially avoiding some
barriers to access.
Establishing a new grant program for this purpose would raise administrative questions. Should
grants go directly to utilities, or should they go to state agencies (e.g., state energy offices) to be
provided to utilities? What oversight mechanisms would be required to ensure grants go to
reducing arrearages and not other purposes? Should oversight be conducted by state and local
utility regulators or by a federal agency? Should different types of utilities (e.g., investor-owned,
municipal, co-operative) be treated the same or differently under such a grant program? Should
all arrearages be covered (or just a subset), and how should that decision be made?
Equity
As described above, some racial and ethnic groups experience disconnections at a higher rate than
others, even when accounting for levels of energy insecurity. Congress might consider whether
any action aimed at reducing disconnections sufficiently and appropriately addresses this. At the
same time, some analysis suggests that existing efforts to reduce disconnections does not reach a
similar percentage of Black and Hispanic households as White households (Figure 5). Any of the
potential policy options described in this report could include provisions addressing the factors
that lead to this difference. One challenge is that those factors are not well understood.
Federalism
Under current law, state or local regulators have the authority to decide how to address
disconnections and arrearages. This approach allows regulators to adapt their approaches to local
conditions, such as average electricity usage, housing stock efficiency, and economic conditions.
At the same time, the status quo may lead to different outcomes for individuals across the
country. One group in favor of the status quo is the National Association of Regulatory Utility
Commissioners (NARUC). For example, NARUC wrote to congressional leaders
We believe that a federal “one-size-fits-all” approach will severely restrict or eliminate the
ability of state commissions and utilities to work with customers on acceptable payment
plans. In effect, any proposals that dictate how and whether utilities contact and work with
customers to make payment arrangements will complicate state efforts to help guide
customers through [the COVID-19 pandemic] and its aftermath into the future.40
Some groups may favor a more uniform national approach, motivated in part by the key role that
electricity plays in society, the economy, and public health. For example, H.Res. 1364 in the 117th
Congress described electricity and other utility services as a basic human right, required to
survive and live a life with dignity. This resolution called for a full ban on utility disconnections.
Climate Change and Adaptation
Policies aimed at addressing utility disconnections may consider how climate change could
increase overall electricity demand. Temperature is a key driver of electricity bills. In general,

40 Letter from National Association of Regulatory Utility Commissioners to The Honorable Mitch McConnell, Majority
Leader; The Honorable Charles E. Schumer, Minority Leader; The Honorable Nancy Pelosi, Speaker; and The
Honorable Kevin McCarthy, Minority Leader, April 20, 2020.
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electricity bills are highest in the summer months when air conditioning demand is highest.
Relatively few states prohibit disconnections during hot times of the year (Figure 3), so people
having trouble paying their bills may be more at risk of losing their electricity when they need it
most.
According to the Fourth National Climate Assessment (NCA4), extreme temperatures are
projected to increase even more than average temperatures in the contiguous United States.41 One
study of disconnections in California estimated that each additional day with a maximum
temperature of at least 95°F increases the relative risk of disconnection by 1.2%.42
Warmer nighttime temperatures are potentially more challenging from a bill affordability
perspective, because they extend the hours when electricity is needed for cooling. Instead of
turning off air conditioners at night, people are more likely to run their air conditioners overnight
if nighttime temperatures are high. Additionally, climate change is making extreme heat waves
more common, including in regions of the country like the Pacific Northwest that historically had
mild summers.
Additionally, extreme weather is becoming more common and intense in the United States.
Extreme weather events like hurricanes or wildfires can damage electricity infrastructure.
Repairing this infrastructure—or hardening it so that it can better withstand extreme weather
events—is another utility expense that is often borne by customers. To the extent that responding
to weather events increases electricity rates, affordability challenges could increase in the future.
Pandemic Recovery
Research indicates that while disconnections have been a persistent occurrence, they have
increased somewhat since 2021. The year 2022 coincided with an end of disconnection moratoria
and a phasedown of federal financial stimulus, both of which had been instituted in 2020 in
response to the pandemic. The economy continues to be affected by pandemic-related trends (e.g.,
supply chain disruptions, increased telework), and these trends could potentially affect the rate of
utility disconnection. It is currently unclear how long pandemic effects will continue or what
additional federal pandemic response (if any) may be taken. Options to address utility
disconnections might consider the role that the COVID-19 pandemic has played to date and might
play in the future. Additionally, any future congressional action related to the pandemic might
consider its impact on disconnections.
Increasing Energy Prices
Pandemic disruptions, the war in Ukraine, and other factors have led to an increase in energy
prices, including electricity prices, since 2020.43 Electricity prices may remain elevated compared
to pre-pandemic levels for some time, because the cost of key inputs such as natural gas are
expected to remain above pre-pandemic levels through at least the end of 2024.44 Higher

41 See p. 185 of Vose, R.S., D.R. Easterling, K.E. Kunkel, A.N. LeGrande, and M.F. Wehner, “2017: Temperature
Changes in the United States,” in Climate Science Special Report: Fourth National Climate Assessment, Volume I
[Wuebbles, D.J., D.W. Fahey, K.A. Hibbard, D.J. Dokken, B.C. Stewart, and T.K. Maycock (eds.)]. U.S. Global
Change Research Program, Washington, DC, pp. 185-206.
42 Alan Barreca, R. Jisung Park, and Paul Stainier, “High Temperatures and Electricity Disconnections for Low-Income
Homes in California,” Nature Energy, vol. 7, October 20, 2022, pp. 1052-1064.
43 EIA, “During 2021, U.S. Retail Electricity Prices Rose at Fastest Rate Since 2008,” March 1, 2022.
44 EIA, Short-Term Energy Outlook, January 10, 2023.
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electricity prices could lead to more disconnections if they increase affordability issues. On the
other hand, higher prices can also encourage energy-saving measures which might lower overall
bill expenses. Options to address utility disconnections might consider how overall energy price
increases affect affordability. Congress could also choose to evaluate energy price forecasts to
determine whether or how affordability and disconnections could become growing concerns.
The 117th Congress enacted P.L. 117-169, commonly known as the Inflation Reduction Act of
2022 (IRA). Among other goals, IRA aims to promote energy efficiency, electrification, and
renewable energy, all of which potentially could limit the extent to which higher energy prices
increase bills.45 For example, IRA contains provisions discussed above aimed at improving
energy efficiency, especially in low-income households. When households improve their
efficiency, they can lower their electricity usage (all else being equal), which can lead to lower
bills. IRA implementation outcomes are currently uncertain, so the extent to which IRA
provisions might reduce energy burden or disconnections in the future is unknown.
Options for Congress
Under current laws and regulations, state and local utility regulators oversee utility disconnection
practices and most issues related to electricity affordability. Some states have strengthened their
reporting requirements related to disconnections since the pandemic, creating an opportunity for
challenges and best practices to be identified. Utilities and their regulators have existing channels
for sharing such information, including national organizations like NARUC, NEADA, and utility
trade associations. These entities could continue supporting state policymaking to address
disconnections without additional congressional action.
Congress could also consider oversight activity to investigate current utility disconnection
practices or highlight successful policies to address disconnection. The House Energy and
Commerce Committee undertook some oversight actions in the 117th Congress, asking selected
utilities for information related to their disconnections.46
Utilities and their regulators tend to voice support for federal financial assistance programs such
as LIHEAP. Congress could consider appropriate funding levels for LIHEAP and whether
funding levels should be changed in response to the pandemic, increasing energy prices, recently
enacted legislation, or other factors. As summarized in Table 3, a number of bills introduced in
the 117th Congress would have increased LIHEAP funding or amend it to cover arrearages or
limit disconnections. Congress could also consider whether LIHEAP is currently structured
appropriately to address policy issues identified above, such as equity and climate change.
Congress could also consider options to prohibit disconnections, either entirely or in certain
circumstances. One option is a nationwide prohibition covering all customers, as proposed in
H.Res. 1364 (117th Congress). Another option is a nationwide prohibition covering a subset of
customers (e.g., households receiving other forms of federal financial assistance). Any nationwide
prohibition on disconnection might need to consider implications for policy issues discussed
above, such as who would pay for associated costs to utilities. A third option is for Congress to
encourage states to limit disconnections. Historically, Congress has encouraged state and local

45 Energy efficiency, electrification, and renewable energy provisions of P.L. 117-169 are summarized in CRS Report
R47262, Inflation Reduction Act of 2022 (IRA): Provisions Related to Climate Change, coordinated by Jane A. Leggett
and Jonathan L. Ramseur, and CRS In Focus IF12258, The Inflation Reduction Act: Financial Incentives for
Residential Energy Efficiency and Electrification Projects, by Martin C. Offutt.
46 House Committee on Energy and Commerce, “E&C Leaders Demand Answers from Utility Companies on
Alarmingly High Shutoff Rates During COVID-19 Pandemic,” press release, March 21, 2022.
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regulators to adopt certain utility policies through PURPA and amendments thereto. H.R. 9300
(117th Congress) would have amended PURPA to encourage utilities to consider disconnection
prohibitions during extreme hot or cold weather events.
Compared to other aspects of electricity, data on utility disconnections are sparse. This creates
knowledge gaps that complicate policymaking in this area. It also results in a lack of transparency
into utility disconnection procedures, creating uncertainty in certain areas such as racial and
ethnic differences in disconnections. In the Consolidated Appropriations Act, 2023 (P.L. 117-
328), Congress provided $3 million to EIA to begin collecting monthly data on utility
disconnections.47 Congress could monitor EIA’s implementation of this recommendation and
evaluate the need for any modifications to its data collection practices.
While additional federal data collection could improve Congress’s understanding of
disconnections, it might also create reporting burdens on utilities who may not currently track
disconnection information in a way that can be readily reported to EIA. As is common with
electricity data, different utility processes and internal practices might lead to discrepancies in
how disconnection data are reported at a national level. Even if a national reporting requirement
were established, industry participants might need several years to develop procedures that would
result in comprehensive national datasets.

Author Information

Ashley J. Lawson
Claire Mills
Analyst in Energy Policy
Research Assistant

Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
shared staff to congressional committees and Members of Congress. It operates solely at the behest of and
under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other
than public understanding of information that has been provided by CRS to Members of Congress in
connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not
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copy or otherwise use copyrighted material.

47 The explanatory statement accompanying the Consolidated Appropriations Act, 2023 (P.L. 117-328) recommends
EIA “conduct a monthly survey of electric and heating service providers of final termination notices sent due to bill
non-payment, service disconnections due to bill non-payment, and Service reconnections of customers disconnected for
bill non-payment, in a form and manner determined by the agency.” Congressional Record, December 20, 2022, p.
S8363, https://www.congress.gov/117/crec/2022/12/20/168/198/CREC-2022-12-20-pt1-PgS7819-2.pdf.
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