Morehead State Public Radio | By Nadia Ramlagan, Public News Service
Utility debt is becoming a growing crisis for households across Kentucky, particularly in rural communities.
About 21 million U.S. households were behind on their utility bills as of late 2025, with total household energy debt reaching nearly $23 billion, according to the National Energy Assistance Directors Association (NEADA).
In Kentucky alone, more than 127,000 households are carrying overdue utility balances, with an average past-due amount of $549, based on a new report from the advocacy group Protect Borrowers.
Aissa Canchola Banez, policy director for Protect Borrowers, said rising energy costs are placing a heavier strain on family budgets.
“They’ve grown significantly across Appalachia and parts of the South,” Banez said. “In Kentucky, for example, energy bills have increased by more than 26%.”
The surge in energy demand from artificial intelligence data centers is contributing to higher utility costs nationwide. The report also highlights disparities, showing that Black households are three times more likely than white households to carry overdue utility debt.
Utility debt is compounding other financial pressures, including medical bills and student loans. Starting this year, the Trump administration resumed wage garnishment for borrowers who have missed student loan payments for at least nine months. Banez warned that mounting utility debt is intensifying the burden on already struggling families.
“These are folks who have fallen so far behind that they’re facing, or are about to face, debt collection,” she said.
NEADA estimates that one in six U.S. households is currently behind on utility payments, underscoring the growing scale of the problem nationwide
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