Why It Matters
Texas accounted for more than 3 million residential electricity disconnections in 2024, the highest state total in the nation, according to new federal data. The shutoffs reflect mounting financial pressure on households as electricity prices climb and grid infrastructure costs rise. With electricity rates projected to increase another 29% by 2030, the issue threatens to deepen energy poverty among low- and moderate-income families across the state.
What Happened
The U.S. Energy Information Administration released a report showing utilities disconnected residential electricity service 13.4 million times nationwide in 2024. Texas led the country with more than 3 million disconnections, despite representing only about 9% of the nation’s electricity customers. The state also recorded 206,372 residential natural gas disconnections, again the highest in the country.
The data represents one of the most comprehensive federal snapshots to date of how frequently American households lose power due to unpaid bills. Texas customers accounted for 22.5% of all electricity disconnections nationwide, a disproportionate share that energy researchers say underscores systemic affordability challenges in the state’s electricity market.
By the Numbers
Survey data from the Texas Energy Poverty Research Institute found that half of low- and moderate-income households in the state struggle each month to pay energy bills. Residential electricity prices in the ERCOT competitive retail market rose approximately 30% between 2021 and 2025, adding roughly $35 to $40 per month to a typical low- or moderate-income household’s bill. The institute projects an additional 29% price increase from 2025 to 2030, driven primarily by transmission and distribution infrastructure investments.
ERCOT serves approximately 90% of Texas electric demand. Recent data shows the grid operator faces a surge of large-load connection requests from data centers, cryptocurrency mining operations, and industrial facilities.
Zoom Out
Rising electricity costs in Texas stem from multiple factors, including the state’s rapid population growth, extreme weather events that strain grid capacity, infrastructure hardening after the 2021 winter storm, and new large-scale electricity consumers. Many low- and moderate-income families report cutting back on food, medicine, or school supplies to pay energy bills. Some limit air conditioning use during hot weather to control costs, raising health and safety concerns.
Once disconnected, customers face additional barriers to restoring service. They must enter payment plans, clear overdue balances and fees, or switch to another retail electric provider, often at less favorable rates. Researchers note that disconnected customers lose access to competitive pricing options, making electricity more expensive after reconnection.
What’s Next
Energy affordability researchers expect the disconnection trend to continue as infrastructure costs drive further rate increases. The state’s deregulated retail electricity market and growing industrial demand add complexity to affordability challenges. Advocacy groups are calling for policy changes to address energy poverty, though no legislative action is currently scheduled. Utilities and regulators will continue reporting disconnection data to federal authorities as part of ongoing energy market monitoring.