Consumer Reports: Electricity costs drive 1 in 5 Americans to cut back on food

A new survey from Consumer Reports indicates that approximately one in five Americans have reduced their grocery spending to manage rising electricity bills. The nonprofit advocacy group found that roughly a quarter of consumers are lowering their heating or air conditioning to uncomfortable levels to offset these energy costs. These findings highlight a growing affordability strain on households, with 80% of residents who have remained in the same home for at least three years reporting an increase in their electricity bills over that period.

The survey, which included more than 2,000 adults, reveals that the largest share of respondents, 28%, experienced a surge in bills between 20% and 49% during the three-year timeframe. Federal data cited in the report shows that electricity prices across major U.S. cities have jumped 14% over the last three years. Sara Enright, senior director of safety and energy at Consumer Reports, told CBS News that the organization is hearing from individuals who are unsure how to afford these rising rates. She noted that vulnerable populations, such as students and retirees living on fixed incomes, have little budget flexibility and find surprise bills during peak summer months particularly frightening.

Enright explained that consumers often prioritize utility payments to keep essential services running, leading them to cut back on food and non-essential items like vacations and dining out. This trend is part of a broader cost-of-living crunch, exacerbated by sharply higher gasoline and diesel prices linked to increased oil costs due to the war in Iran. Other polls indicate that energy costs are weighing on voters ahead of next month's midterm elections. An October survey from Climate Power, a clean energy advocacy group, identified food costs as the top concern for voters in battleground states, followed by gas prices and utility bills.

Consumer Reports found that Americans attribute their higher electric bills to utility companies seeking to maximize profits and the rapid expansion of data centers. Energy management company Schneider Electric forecasts that electricity demand will increase 16% by 2029, primarily due to the proliferation of data centers across the U.S. Other factors contributing to rising power costs include the price of natural gas and the ongoing electrification of buildings and vehicles. A majority of survey respondents expressed distrust that state utility regulators are protecting their interests. Enright stated that this distrust spans party lines, with everyday people concerned that their needs are not being centered by legislators.

Mark Wolfe, executive director of the National Energy Assistance Directors Association, told CBS News that more middle-income households are applying for government energy assistance despite exceeding the income eligibility thresholds. The federal Low Income Home Energy Assistance Program is limited to individuals earning less than 60% of their state's median income. Wolfe described how tight budgets are stretched by high food, gasoline, and summer cooling bills, noting that a monthly increase in driving costs of $100 to $150 can consume an entire household surplus.

In response to these challenges, Consumer Reports is launching an initiative called Power Smarter to help households reduce energy costs. This effort includes a service named the CR Bill Decoder, which allows consumers to submit their electric bills for analysis. Consumer Reports will anonymize the data to map price trends across the U.S. and evaluate what is driving energy costs at both national and state levels. Enright described the tool as a simple first step for consumers seeking to understand their bills and take greater control over their energy expenses.