For more than a century, the American power grid was out of sight and out of mind — and for good reason. It was stable, predictable, and reliable. That era is over. Today’s grid, increasingly shaped by digital technologies, artificial intelligence (AI), and the internet, is colliding with a rapidly expanding digital economy dominated by global technology companies. We are forcing 21st-century demands through 20th-century infrastructure, and when those pipes crack — as they inevitably will — technology companies will not absorb the costs. Families will, when they open their utility bills and confront impossible choices about what they must sacrifice to keep the lights on.
Utility bills are rising fast, in part, due to the result of sprawling data centers that operate around the clock to power AI tools, cloud computing, and digital services. These facilities consume enormous amounts of electricity, placing unprecedented strain on the grid and an increase in costs to consumers. If not handled properly, this surge in demand will blow a hole through the foundation of energy affordability.
Energy affordability is like a heartbeat that must be monitored, protected, and preserved. It is the foundation upon which all other energy policies rest. It is not merely an economic issue; it is a matter of dignity and equity. Every resident deserves access to safe, reliable, and sustainable energy at a cost they can afford. Legislators and regulators are obligated to protect families from unaffordable utility bills.
Since 2011, I have had the honor of serving as the District of Columbia’s People’s Counsel, and I have seen firsthand how affordability erodes when it is treated as an afterthought rather than a guiding principle. Energy policy is built one decision at a time, either strengthening or weakening families’ and small businesses’ ability to manage utility costs. Most energy-affordability analyses define an energy burden above 6 percent of household income as unaffordable and above 10 percent as a severe energy burden. OPC’s 2020 energy affordability study found that SNAP-eligible households in the District face an average energy burden of 20.5 percent. In light of rapidly rising wholesale costs and distribution-level rate increases, OPC filed a petition before the District of Columbia Public Service Commission to establish a comprehensive energy affordability proceeding to confront this growing crisis.
In an AI-driven world, regulators and legislators must base their decisions on three principles: prioritizing affordability, measuring it, and ensuring that consumer protection programs work.
First, affordability must be treated as a priority equal to reliability and climate goals. Too often, energy decisions are made first, and affordability is assessed later. Major infrastructure projects, cost-recovery mechanisms, and rate increases move forward without first answering a fundamental question: What does this mean for the household budget of a typical resident?
We cannot make decisions in a vacuum and then attempt to retrofit affordability after harm has occurred. Once rates move beyond reach, it is extraordinarily difficult to restore financial stability for struggling households. Policymakers must begin with an affordability analysis. Without it, consumers are steered into financial storms they did not create and cannot weather.
Second, you cannot manage what you do not measure. Decisionmakers need standardized affordability indices — clear, transparent tools that show when utility costs cross the threshold of what families can reasonably bear. When affordability is measured, problems become visible, actionable, and preventable.
Third, affordability programs must deliver absolute, measurable protection. Across the country, states have created assistance programs with good intentions but mixed results. These programs must be judged not by their aspirations, but by outcomes. Are they helping families stay connected and out of crisis? If yes, expand them. If no, redesign them. Families should not fall through cracks we have the power to close.
The Call to Action
Legislators and regulators are in the driver’s seat of a rapidly transforming energy system. Decisions made in the next ten years will shape utility affordability for generations. A passive observation of the problem is not sufficient. This is a moment for principled leadership. Affordability must be made a primary priority and must be measured with tools that reflect reality. Likewise, programs designed to protect consumers must be strengthened and modernized.
If we hold to these principles, we can build a future where innovation and equity advance together — where the grid evolves, but residents are not left behind; where technology progresses, but dignity is preserved; where the lights stay on and the bills remain within reach.
The future is what we make it. Let us build it with data as our foundation, fairness as our compass, and an unwavering commitment to the people who depend on us to protect their fundamental right to affordable energy.
Sandra Mattavous-Frye
People’s Counsel for the District of Columbia