American families are struggling with soaring energy prices.

Kristy Hallowell had just lost her job when her energy bill unexpectedly tripled to $1,800 a month.

Unable to pay, her gas and electricity were cut off, and she, her two children and her mother relied on a generator to light and heat their home for six months last year.

The 44-year-old is one of millions of Americans who have fallen behind on their energy bills as prices have soared over the past year.

Her home in Greenwood Lake, New York now has electricity back on after a local non-profit reached an agreement with the power company to accept partial payments.

But the gas is still off and electricity bills continue to rise this winter, leaving her fearful of another power outage. She said she currently owes about $3,000 in utility bills.

“This was shocking to say the least,” she said.

A recent report found that nearly one in 20 households are at risk of having to pay their utility bills during the winter.

An analysis of consumer credit data compiled by the Century Foundation and Protect Borrowers found that the number of households with seriously delinquent utility bills increased by 3.8% during the first six months of President Trump’s second term.

Residential energy bills have emerged as a major cost-of-living issue among American consumers. This is because many people are struggling with rising prices and are dissatisfied with US President Donald Trump’s economic policies.

Official economic data for November showed electricity prices rose 6.9% year-on-year, much faster than overall inflation.

President Trump, who announced during his campaign that he would cut energy costs in half, insisted that costs were falling. “Under the Trump administration, costs are plummeting with the help of gasoline and energy,” he wrote on social media last November.

The White House blames former President Joe Biden and U.S. central bank interest rates for the continued economic pain.

But with Democratic wins in recent state and city elections and polls showing declining consumer confidence, the Trump administration has shifted its message to focus on affordability to ease voter anxiety about the cost of living in the United States.

At the same time, the federal government has proposed cutting funding to states to help low-income residents pay their utility bills.

Experts also warn that electricity bills could rise even higher if the Trump administration rolls back clean energy projects, including the recent decision to pause leasing for offshore wind energy projects being built near the Atlantic coast.

“This is going to be huge, both as a policy issue and as a political issue,” said Alex Jacquez, director of policy and advocacy at the Groundwork Collaborative, a progressive economic think tank.

Laurie Wheelock, executive director of the Public Utility Law Project in New York, said many of the state’s low-income utility customers seeking help with their bills have left their utility bills aside as rent, health insurance and other costs continue to rise.

Wheelock said 2025 saw an increase in utility account terminations for unpaid bills from nonprofits.

Before the pandemic, customers who approached the organization typically owed $400 to $900 in utility debt. Now, she said, people often owe more than $6,000.

“The combination of rising costs and financial instability has made it difficult,” she added.

Rising electricity and natural gas prices and unusually cold weather are expected to increase winter heating costs by 9.2 percent this season, according to the National Energy Assistance Directors Association.

According to the report, energy costs tend to be highest in the Northeast region of the United States. But households from California to Georgia to South Dakota have also felt the strain of rising costs over the past year.

Analysts say there are a number of reasons why residential energy costs are rising.

First, the price of natural gas, which accounts for nearly half of U.S. electricity generation, has soared over the past year. The natural gas industry is pushing more and more of its production overseas, contributing to rising domestic prices.

“Electricity generation continues to bear the brunt of rising fuel costs,” said John Quigley, a senior fellow at the Kleinman Center for Energy Policy at the University of Pennsylvania.

A recent shift away from clean energy investments may also play a role. A report from climate advocacy group Climate Power cites the Trump administration’s cancellation of a project that could have generated enough electricity to power 13 million homes.

The report said electricity bills have risen 13% due to the destruction of clean energy projects since President Trump returned to the White House, as the United States has become increasingly dependent on foreign oil.

Another key factor is that energy demand from the artificial intelligence boom is putting pressure on the power grid.

From Alphabet to Amazon, technology companies are increasing investments in AI infrastructure, and data centers require massive amounts of power.

Quigley said that as power demand for data centers continues to increase, prices are rising for everyone.

Finance Minister Scott Bessent told ABC News in November that electricity prices were a “national issue.”

“There are some things the federal government can control. Local electricity prices are not one of them,” he said.

But some analysts argue that if the federal government embraces clean energy, it would help drive down prices.

At the state level, some lawmakers have proposed requiring large data centers to provide their own power so families don’t have to foot the bill.

In Virginia, where data centers have proliferated, incoming Gov. Abigail Spanberger announced plans to make technology companies “pay their fair share” and encourage clean onsite and offsite generation and storage in data centers.

Virginia utility regulators recently approved a separate rate category for the largest power customers, such as data centers, requiring them to pay a larger share to protect other ratepayers.

“We can deal with people’s complaints about prices in the short term while dealing with long-term structural fixes,” said Alex Jacquez of Groundwork Collaborative.

But relief for consumers will take time. Residential energy prices will likely continue to rise in the coming months.

Last year, 30-year-old Ibrahim Awadallah installed solar panels at his home in Charlotte, North Carolina, to cut down on energy costs.

His plan was largely successful. His electric bills tend to be lower than his neighbors’, even taking into account the $180 he pays each month on a solar panel loan.

Nonetheless, in October, Awadallah noticed that his bill from the power company had increased by about 10 percent, even though he was on the road for most of the month.

A telecommunications developer has proposed building a data center near east Charlotte. Awadallah fears electricity costs will rise further if the project is approved.

“I don’t think the situation will get better in the short term,” he said.