Rising Electricity Costs Force 20% of Americans to Cut Groceries
Consumer Reports finds rising electricity prices are forcing millions of Americans to reduce food spending and live in uncomfortable temperatures to afford utility bills.
A national survey of over 2,000 adults by Consumer Reports reveals that approximately 20% of Americans are reducing grocery spending to afford rising electricity bills. Federal data shows electricity prices in major U.S. cities have climbed 14% over the last three years, with 80% of long-term residents reporting bill increases. About 28% of those residents saw surges between 20% and 49%, while 25% of all respondents report living in uncomfortable temperatures to save money.
The financial strain is most acute for households earning less than $85,000 annually, who are more than twice as likely to experience hardship. This trend coincides with a September 2026 national unemployment rate of 4.2% and a general increase in the Consumer Price Index. Consequently, middle-income households are increasingly applying for government energy assistance even when they exceed eligibility thresholds.
Consumers attribute the price hikes to utility company profit-seeking and the expansion of data centers, which Schneider Electric forecasts will drive a 16% increase in electricity demand by 2029. Other factors include natural gas prices and the electrification of buildings and vehicles. In response, Consumer Reports is launching the Power Smarter initiative and a Bill Decoder tool to help consumers analyze and reduce their energy costs.
