The looming specter of record-breaking summer temperatures and the ongoing strain on household budgets have created a perfect storm, leaving low-income families particularly vulnerable, according to a report by the National Energy Assistance Directors Association (NEADA) and the Center for Energy, Poverty, and Climate.
The summer of 2024 is projected to be yet another record-breaking season, with residential electric utility expenditures expected to reach their highest levels in the past decade.
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The Northeast and large portions of the West are bracing for the brunt of the extreme heat, with NOAA's forecasts painting a grim picture.
This surge in cooling demands will translate into a significant increase in energy bills, with regions such as the South Atlantic and Pacific experiencing year-over-year spikes of up to 12.2% and 12.2%, respectively.
These rising energy costs will fall heaviest on low-income households, who already face an average energy burden of 8.6% of their income – nearly three times the rate for non-low-income households.
The Census Household Pulse Survey has revealed that the percentage of households unable to pay their energy bills for at least one month in the past year has increased from 21.3% to 23.5%, with the largest increase seen in households with children, rising from 28.4% to 33.1%.
Extreme heat poses a grave threat to the health and well-being of vulnerable populations, including the elderly, disabled, and low-income families. Heat-related illnesses and fatalities are on the rise, with Maricopa County, Arizona reporting a staggering 469 heat-related deaths in the summer of 2023, up from 372 the previous year.
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Doctors warn that these figures are likely undercounted, as the effects of extreme heat can manifest in various forms, from respiratory issues to cardiovascular problems and strokes.
The reduction in federal funding for the Low Income Home Energy Assistance Program (LIHEAP) from $6.1 billion in FY 23 to $4.1 billion for FY 24 has left states with no choice but to reduce the number of households served by about one million and cut average heating and cooling benefits.
This comes at a time when the need for assistance is greater than ever, as the percentage of households reporting that they kept their home at unsafe temperatures has increased from 22.3% to 22.9%, with the largest increase seen in low-income households, from 31.7% to 34.0%.
The level of utility consumer debt has risen from $17.5 billion in January 2023 to $20.3 billion in December 2023, with NEADA estimating that 16% (21.2 million) of all U.S. households are behind on their energy bills.
This crisis is compounded by the fact that summer cooling costs are arriving on the heels of higher heating season expenses, further straining household budgets.
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