Utility Customer Affordability, Regulatory Pressure, and the Path to Climate Goals

Abstract

Utilities are facing mounting affordability challenges for customers as decarbonization requirements, grid investments, and evolving load growth—including data centers—drive higher, more uncertain system costs. These pathways typically require substantial upfront capital investments in renewable generation, long-duration storage, transmission expansion, advanced distribution management systems, and resilience upgrades to address increasing climate-related risks. Regulators, policymakers, utilities, and consumer advocates are increasingly focused on the cumulative impact of bills, particularly as household energy burden remains elevated for low- and moderate-income (LMI) and vulnerable populations.