A national survey by Consumer Reports indicates that about one in five Americans has reduced spending on groceries to afford rising electricity costs. The survey of 2,003 U.S. adults, conducted in spring 2026, found that approximately 25% of consumers are setting their heating or air conditioning to uncomfortable levels to lower utility expenses. Senior director at Consumer Reports Sara Enright noted that vulnerable populations, including students and retirees on fixed incomes, are impacted by these cost increases.
The reported rise in bills occurs as federal data shows electricity prices in major U.S. cities have increased 14% over the last three years. Among respondents who have lived in the same home for at least three years, 80% reported higher bills, with 28% stating their costs rose between 20% and 49%. According to Enright, many consumers prioritize utility payments to maintain essential services like refrigeration, leading to cuts in food and non-essential spending such as travel.
Consumer Reports identifies several factors contributing to higher rates, including the expansion of power-intensive data centers, which energy management firm Schneider Electric forecasts will help drive a 16% increase in electricity demand by 2029. Other factors include the cost of natural gas, the electrification of buildings and vehicles, and repairs to aging grid infrastructure following extreme weather events. Mark Wolfe of the National Energy Assistance Directors Association noted that more middle-income households are seeking government aid, though many exceed the income limits for the federal Low Income Home Energy Assistance Program (LIHEAP).
The increase in utility costs affects millions of American households, particularly the 20% who report cutting back on food to pay for power. With electricity prices rising 14% over three years—outpacing general inflation—households are facing pressure from the combined costs of utilities, food, and gasoline. According to Wolfe, a $100 to $150 monthly increase in driving costs alone could exhaust the entire budget surplus for those on a tight budget. For retirees and students on fixed incomes, a single high bill during summer cooling months can be frightening and force trade-offs in spending.
The scale of this shift is reflected in the more than 50% of Americans who say they have made financial trade-offs to pay utilities over the last two years. While federal assistance through LIHEAP is restricted to those earning less than 60% of their state’s median income, rising costs are impacting middle-income earners who do not qualify for these benefits. Consumers may attempt to mitigate costs by enrolling in "time-of-use" plans, which 12% of households already use to access lower rates during off-peak hours, such as overnight.
The situation has influenced broader consumer sentiment, with a majority of survey respondents reporting they do not believe state utility regulators are protecting their interests. Consumer Reports is responding by launching "Power Smarter," an initiative that includes a "Bill Decoder" to track price trends. Voters in battleground states have identified utility bills as a top three concern ahead of the November 2026 midterm elections, trailing food and gas prices. Continued demand from data centers and grid maintenance costs are expected to keep upward pressure on rates through the end of the decade.