
Regulatory reform optionsin the United States to reduceand prevent disconnections Repor t /August 2025 Authors and Acknowledgments Authors Maria CastilloJoseph DanielKatie EbingerCarina Rosenbach Authors are listed alphabetically. All authors and reviewers are from RMI unless otherwise noted. Contacts Maria Castillo,mcastillo@rmi.orgJoseph Daniel,jdaniel@rmi.org Copyrights and Citation Maria Castillo, Carina Rosenbach, Katie Ebinger, and Joseph Daniel,Utility Disconnections Handbook:Regulatory reform options in the United States to reduce and prevent disconnections,RMI, 2025,https://rmi.org/insight/disconnections-handbook. RMI values collaboration and aims to accelerate the energy transition through sharing knowledge andinsights. We therefore allow interested parties to reference, share, and cite our work through the CreativeCommons CC BY-SA 4.0 license.https://creativecommons.org/licenses/by-sa/4.0/. All images are courtesy of iStock.com unless otherwise noted. Acknowledgments The authors would like to thank the following individuals for their helpful feedback on this report. All errorsremain our own. Jacob Cordivae,RMICara Goldenberg,RMIShelby Green,Energy and Policy InstituteAlison Knasin,Energy Justice LabGeoff Marke,Missouri Office of Public CounselMax Markrich,Hawaii Public Utility CommissionJustin Schott,Energy Equity ProjectOlivia Wein,National Consumer Law Center About RMI Rocky Mountain Institute (RMI) is an independent, nonpartisan nonprofit founded in 1982 that transformsglobal energy systems through market-driven solutions to secure a prosperous, resilient, clean energyfuture for all. In collaboration with businesses, policymakers, funders, communities, and other partners,RMI drives investment to scale clean energy solutions, reduce energy waste, and boost access to affordableclean energy in ways that enhance security, strengthen the economy, and improve people’s livelihoods. RMIis active in over 60 countries.By Table of Contents Glossary5 Energy Poverty in the United States10 The energy insecurity crisis11The national landscape of energy burden14Utility disconnections due to nonpayment16Disconnections by the numbers18 Demographic Breakdown: Examining Trendsin Disconnections22 Demographic disparities in energy burden and energy insecurity22Demographic disparities in disconnections23 Disconnection Reform Options24 The policy opportunity for PUCs24Landscape of policy options available to PUCs to limit disconnections26Targeted reform options27Broad reform options31Affordability programs33 Implementing Disconnection Reform36 Regulatory venues for advancing disconnection reform36Cost-benefit considerations for disconnection reform38Putting the pieces together: toward comprehensive disconnection reform39 Conclusion46 Endnotes47 Glossary Arrearage— amount of a utility bill that is unpaid after the due date set by a utility company. Energy burden— the share of a household’s income spent on energy. Energy burdened— a household that spends 6% or more of its income on energy.In other words, ahousehold with an energy burden that is at least 6%. Energy insecure— a household that is unable to meet basic energy needs. Energy insecurity— the inability of a household to meet its basic energy needs. There are three primarydimensions to energy insecurity, which describe different lived experiences of households: (1) physicalenergy insecurity, (2) economic energy insecurity, and (3) behavioral energy insecurity. Energy poverty— a household’s inability to afford enough energy to meet its basic needs. Utility disconnection— a shutoff or suspension of energy service to a utility customer due to nonpayment. Executive Summary Utility disconnections are a growing crisis in the United States, with millions of households losing access toelectricity due to nonpayment each year. Often triggered by relatively small debts and short notices, utilitydisconnections disrupt household safety, health, and stability and perpetuate a broader cycle of energypoverty. This cycle obviously doesn’t benefit the affected household, but it also doesn’t benefit the utilityor other ratepayers. This report explores the scale, causes, and consequences of utility disconnections and provides acomprehensive set of policy pathways for public utility commissions (PUCs) to address the problem. Itreveals that although disconnection data is incomplete and inconsistently reported, available evidencesuggests that at least 6 million households are shut off annually. Disconnections most commonly affecthouseholds already facing economic hardship, poor housing quality, and high energy burdens. In 2023alone, nearly 2 million shutoffs were reported across 22 states and Washington, D.C., and by the end ofSeptember 2024, arrearages totaled more than $20 billion nationwide. On average, across all utility types,electric utilities disconnect about 2.5% of residential customers throughout the United States annually (seeExhibit E