Holding Utilities Accountable: The Path to an Equitable and Sustainable Energy Future
Energy is an essential part of our daily lives—every time we flip a light switch, plug in a phone charger, turn on the shower, or adjust the AC, we are engaging with a public utility, the organizations that supply and manage our power. Yet, despite their crucial role, many people rarely think about the true costs of energy. For people struggling to pay for food, water, and power, expensive energy bills can be more than a financial burden—they can be dangerous. Imagine being forced to choose between keeping the lights on and putting food on the table, or facing the prospect of a home without heat in the winter or air conditioning in the summer.
The Burden of High Energy Costs
Low-income households are particularly vulnerable to what is known as energy burden—the percentage of a household’s income that is spent on utility bills. Shockingly, low-income households spend three times as much of their income on energy costs compared to the average family. This burden is not just a financial strain but a reflection of broader systemic issues.
Old homes with outdated and wasteful heating and cooling systems can drastically increase energy bills. Compounding this problem is the legacy of racist housing policies like redlining and segregation, which have forced many families of color into older, poorly built neighborhoods. These homes are often the least energy-efficient, creating a cycle of poverty that is difficult to break.
But this cycle can be broken. By increasing access to clean, affordable energy solutions like solar power, we can lower energy bills, ease financial burdens, and cultivate a new approach to our energy system that empowers families and communities. Utility accountability is central to this transformation.
The Power and Responsibility of Utilities
Every state designates a Public Utility Commissions (PUC), sometimes called Public Service Commissions (PSC) or other titles, to oversee public utilities. These commissions play a pivotal role in shaping our energy future. They make major decisions that impact not only your utility bills but also our environment and the broader transition to clean energy.
Utility regulation is particularly crucial for investor-owned utilities that operate as monopolies. These utilities wield significant market and political power, making regulation necessary to prevent unjust or unreasonable energy costs, poor service quality, and inadequate infrastructure investments. PUCs are tasked with ensuring that utilities operate in the public interest by balancing consumer needs with financial viability. They help determine which energy solutions, including solar power, utilities will adopt and at what cost. Ultimately, utility regulation is meant to safeguard against monopolistic abuses while fostering a fair, reliable, and sustainable utility sector.
However, the decisions made by PUCs are often influenced by powerful fossil fuel companies and corporate lobbyists, which can skew outcomes in favor of these industries rather than the public. This is compounded by the fact that many people are unaware of what these commissions do or how their decisions are made. This lack of transparency can limit public engagement, allowing utilities to operate without sufficient accountability.
Why Public Participation Matters
Despite their significant power, most people don’t know much about PUCs or how they operate. This lack of public awareness allows fossil fuel companies and corporate lobbyists to exert considerable influence over commission decisions—often to the detriment of consumers and the environment.
Increasing transparency in how utilities are governed and regulated is essential to promoting justice and bringing about change through existing regulatory processes. However, the technical complexity and bureaucracy of public participation in these processes can often discourage or limit meaningful engagement. This is why it’s so important for advocates and concerned citizens to get involved.
If you care about clean energy solutions, affordability, and utility customer protection, you are already qualified to get involved! Understanding how utilities function and how regulatory decisions are made is the first step toward holding them accountable and advocating for policies that incentivize more clean energy production and usage.
A Call to Action
We must demand more from our utilities. We must push for a system where utilities are accountable to the people they serve—not just to their shareholders. This means holding them to the highest standards of transparency, equity, and climate responsibility.
That’s why we co-created. with the Initiative for Energy Justice (IEJ), “Amp Up the People: A Practical Guide for Energy Justice Advocates in Utility Regulation” to serve as a valuable resource for energy justice advocates by simplifying the intricacies of utility regulation and providing essential tools, resources, and strategies
Download The Guide
Together, we can build a future where our energy system is not only clean and sustainable but also equitable. Let’s hold utilities accountable and ensure they are part of the solution, not the problem.