NATIONAL

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

May 6 · May 6, 2026 · 3 min read

Texas Leads All States in Residential Electricity Shutoffs, Federal Data Shows

Why It Matters

Texas recorded more residential electricity disconnections than any other state in 2024, raising serious affordability concerns for the millions of low- and moderate-income households that make up a significant share of the state’s electric customer base. The findings draw fresh attention to the gap between Texas’ reputation for low energy costs and the financial strain many residents actually face.

What Happened

A new report from the U.S. Energy Information Administration tallied 13.4 million residential electricity shutoffs nationwide in 2024. Texas accounted for more than 3 million of those disconnections — the largest share of any state. The state also led the nation in residential natural gas shutoffs, with more than 206,000 disconnections recorded.

Margo Weisz, executive director of the Texas Energy Poverty Research Institute, described Texas as a clear outlier. While Texas residents represent roughly 9% of the country’s electricity customers, they were responsible 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 said in remarks to Texas Public Radio.

By the Numbers

    • 3 million+ — Texas residential electricity disconnections in 2024
    • 13.4 million — Total U.S. residential electricity shutoffs in 2024
    • 22.5% — Texas’ share of all national electricity disconnections
    • ~30% — Rise in residential electricity prices in the ERCOT competitive market between 2021 and 2025, adding roughly $35–$40 per month to a typical low-income household’s bill
    • 29% — Projected additional price increase from 2025 to 2030, driven by transmission and distribution investment

Zoom Out

Texas operates its electric grid largely through ERCOT, the Electric Reliability Council of Texas, which serves about 90% of the state’s power demand. The grid has faced mounting pressure from rapid population growth, back-to-back extreme weather events, and a surge in large industrial power users — including data centers and cryptocurrency mining operations — seeking new connections.

Rate increases have been tied in part to grid hardening investments following the catastrophic 2021 winter blackout, which left millions without power for days. Dallas-area infrastructure decisions, including shifts in how regional services are funded and managed, reflect the broader tension between Texas’ growth demands and the cost burden placed on existing ratepayers.

Weisz noted that customers who are disconnected often face compounding costs. They must clear overdue balances, pay reconnection fees, and sometimes switch to a new retail electric provider — often on less favorable terms. “Once you’re disconnected, you don’t have the same level of choice in terms of accessing affordable plans,” she said. “Your electricity actually becomes more expensive.”

TEPRI survey data found that half of low- and moderate-income Texas households report struggling monthly to cover energy bills, with many reducing spending on food, medicine, or school supplies to maintain electric service.

What’s Next

The projected 29% rate increase through 2030 is expected to keep pressure on state regulators and the Texas Legislature to address affordability mechanisms for vulnerable households. Advocates are likely to press for expanded utility assistance programs and stronger disconnection protections, particularly ahead of the state’s historically intense summer cooling season. Political changes in Austin may also shape how legislative priorities around energy affordability take form in the near term.

Last updated: May 6, 2026 at 12:32 PM GMT+0000 · Sources available
STAY INFORMED
Get the Daily Briefing
Top stories from every state. One email. Every morning.