One out of six American families is behind on their utility bills, according to the National Energy Assistance Directors Association.

Part of the reason for higher utility costs is additional fuel surcharges, based on the energy customers use in kilowatt-hours.

Joshua Bills, commercial energy specialist for the Mountain Association, said charges fluctuate in response to the price of fuel, noting utility companies use the surcharge to pass the buck onto ratepayers.

"They just pass those costs directly to customers, as they receive them," Bills explained. "It sort of reduces the risk to the utility of the volatility, and places all of that volatility on customers."

He pointed out switching to energy-efficient light bulbs, upgrading heating and cooling systems, and running home appliances during "off-peak" hours each month are all ways to decrease consumption and reduce the monthly surcharge.

The U.S. Energy Information Administration predicts electricity prices will continue to rise, with global instability and the continued increase in demand for power, through the winter.

Cara Cooper, coordinator for the group Kentuckians for Energy Democracy, said public comment periods are some of the best tools people have to help direct how energy rates are determined, and what kinds of energy sources companies should prioritize.

"Every day, the Public Service Commission in Kentucky is making really important decisions related to regulating our electric utilities," Cooper noted.

Research shows states with solar and wind infrastructure in place saw lower rate increases between June 2021 and July 2022, compared to states without renewable-power options. Bills stressed counties in the Commonwealth are beginning to take steps toward clean energy, but progress has been slow.

"Kentucky has a long ways to go compared to other states," Bills acknowledged. "We do have quite an influx of proposals for merchant solar. But there's very little groundbreaking happening yet with all those proposals."

Merchant solar is solar power financed by investors and sold to utility companies. Bills noted the Inflation Reduction Act has incentives for boosting energy efficiency and clean energy.

Next year, Kentucky small businesses and households may be eligible for federal assistance to help reduce their power usage.

Federal tax credits from the Inflation Reduction Act are fueling big growth in Tennessee's battery supply chain.

The Volunteer State has become a major hub in battery production with 11 manufactures in the state. For example, in Clarksville, LG Chem is investing $1.7 billion in a facility to produce cathode materials for electric-vehicle batteries.

Xan Fishman, energy program senior managing director for the nonprofit think tank Bipartisan Policy Center, said clean energy tax credits are driving investments in Tennessee's battery industry.

"We've really seen a resurgence in battery manufacturing in the U.S., and in Tennessee in particular, with factories coming online," Fishman pointed out. "It's a sector that has been dominated by China."

The Volunteer State has attracted more than $5 billion in clean energy investments and created 6,700 jobs since 2022. Major developments include the McKellar Solar Farm in Madison County, which helps power Meta's Gallatin data center and the Sequoyah Nuclear Plant near Soddy-Daisy.

Fishman warned the "One Big Beautiful Bill" would gut key federal tax credits supporting the battery supply chain from EV incentives to energy storage and critical mineral processing. He noted electricity and energy needs are on the rise and the tax credits ensure the energy supply can keep up.

"If we don't keep up with that growing demand, the result is going to be that electricity prices go up," Fishman cautioned. "Preserving these tax credits is going to be really important for energy affordability and energy reliability, because we know we all need energy for our lives."

Fishman argued repealing clean energy tax credits could cost U.S. jobs and stop new manufacturing. He added China already controls more than 90% of critical minerals and could raise prices any time. He hopes Tennesseans will work with Congress to protect clean energy tax credits, jobs and U.S. battery manufacturing.

Minnesota's high-profile community solar program will stick around after state lawmakers opted not to approve a sunset provision.

Assistance groups said it's good news for renters and low-income households seeking lower energy bills. In the recent legislative session, a group of lawmakers from both sides of the aisle proposed phasing out the program, arguing it did not make economic sense with more utility-scale solar projects coming on board. But organizations working with under-resourced populations strongly pushed to keep it in place.

Keiko Miller, community solar program director for the advocacy group Minneapolis Climate Action, said they don't have to worry about this option becoming out of reach again.

"Community solar flips it all on its head and allows all people to participate evenly and benefit from renewable energy," Miller explained.

Minnesota's program started in 2013 and is viewed as a national model. Officials said it caters to people who are not in a position to install solar panels on their roof. Instead, they can subscribe to a community solar garden and still get the benefits on their electric bill. Reforms were adopted in 2023 to address underlying issues that had surfaced.

Program supporters said the changes still need time to prove their effectiveness. Miller noted her group does outreach with many renters and low- to moderate-income households, making them aware of the option. She pointed to a community solar garden sitting on the roof of Minneapolis' North High School as a symbol of boosting accessibility to neighborhood residents feeling the energy burden.

"The vast majority of our subscribers are from North Minneapolis," Miller observed. "On average, they're receiving $100 to $300 of reduced energy bills a year."

Minnesota has a mandate for utilities to produce 100% carbon-free electricity by 2040. Lawmakers and activists from both sides of the debate mentioned their vision for the program was crucial in helping the state meet the benchmark. The program's survival also comes as Republicans in Congress move to repeal clean energy incentives.


get more stories like this via email

Workers and families in Indiana could feel the impact of the "One Big Beautiful Bill Act" moving through the U.S. Senate. The legislation would roll back clean-energy tax credits and investments passed in the Inflation Reduction Act.

Jim Clarida, business manager for the International Brotherhood of Electrical Workers in northwest Indiana, said those investments have helped create jobs and attract nearly $8 billion in private energy development to the state.

"Since the IRA was passed," he said, "$7.8 billion in private clean-energy investments have flown into my home state here in Indiana, fueling the construction and manufacturing of EV battery plants, expanding solar and wind developments."

Clarida said Indiana has about two gigabytes of utility-scale solar projects under its belt and has another gigawatt in the pipeline.

Supporters of the big budget bill have argued that the changes are necessary to cut federal spending and reduce the national deficit by eliminating costly subsidies, although it also includes an extension of tax cuts that benefit mostly wealthy Americans.

U.S. Senate minority leader Chuck Schumer, D-N.Y., warned that the bill could drive up household electricity costs by hundreds of dollars and eliminate clean-energy job growth across the Midwest.

"This could create a recession if we lose them all," he said. "And so first, our union members - not just electricians, but everyone - should know that jobs are at stake in their union, either for themselves or their brothers and sisters who are in the union."

Indiana ranks among the top 10 states for clean-energy job growth since the Inflation Reduction Act passed. Schumer urged Hoosiers to weigh in on what he calls "critical energy investments" as the Senate debates the bill.


get more stories like this via email