AARP Hearing Center
5 Ways AARP Is Working to Keep Utility Bills Affordable
We’re fighting off rate increases and pushing for data centers to pay their own way to keep costs within reach for people 50-plus
Rob Dobi
Key takeaways
- Rising utility costs are forcing many older adults to make financial trade‑offs.
- AARP is advocating for policies that make data centers pay all their costs.
- Financial assistance programs and weatherization efforts aim to make it more affordable to age in place as costs rise. Older adults are contending with higher prices for almost everything, and utilities are no exception.
Nearly two-thirds of older Americans say their electric bill has gone up, and 83 percent fear it will climb even higher, according to a 2025 survey by AARP Research.
“For adults 50 and older, affordable and reliable utilities aren’t a luxury — they’re essential to health, safety and the ability to remain in their homes as they age,” says Jenn Jones, AARP’s vice president of financial security and livable communities.
More Ways to Benefit
- Related Benefit 1
- Related Benefit 2
- Related Benefit 3
- Related Benefit 4
- Related Benefit 5
Yet rising energy costs often force older adults to make difficult trade-offs like skipping other bills or enduring dangerous temperatures to avoid turning up the thermostat. That’s why AARP advocates for affordable utility services, in order to protect older adults’ quality of life nationwide.
“As energy demand grows and new pressures like large-scale data centers strain local systems, it’s more important than ever that policymakers put consumers first and protect them,” Jones says, “especially those living on fixed or limited incomes.”
Here’s how we’re working to keep utility bills down.
1. Demanding data centers pay their own way
Join Our Fight to Protect Older Americans
Here’s what you can do to help:
- Sign up to become an AARP activist for the latest news and alerts on issues you care about.
- Find out more about how we’re fighting for you every day in Congress and across the country.
- AARP is your fierce defender on the issues that matter to people 50-plus. Become a member or renew your membership today.
Data centers consume massive amounts of energy to power computer systems, and they are being built in many communities. Advocates are concerned that consumers will need to pay for the infrastructure needed to serve them. They are also concerned that the centers could raise rates and degrade reliability.
Most older Americans oppose covering data center utility costs and want their lawmakers to take action, AARP surveys show.
AARP has advocated for data center legislation and related policies in more than 20 states nationwide, helping shape a growing movement to ensure large energy users don’t drive up utility bills for households. With AARP’s support, states including New Jersey, South Dakota, Oklahoma and Florida have passed legislation aimed at protecting consumers and ensuring data centers pay their own way.
In July, New York’s governor signed the country’s first moratorium on the construction of large data centers, in order to protect consumers from soaring energy costs.
“New Yorkers should not have to pay higher utility bills to support the enormous energy demands of large data centers,” says Beth Finkel, state director of AARP’s New York office.
“We want data centers paying their fair share for the new power and all the upgrades that they need,” says Sean Voskuhl, state director of AARP Oklahoma. “They shouldn’t be saddling residential customers with yet another large rate increase, who are not to blame for it.”
We’re also calling for transparency around data centers’ effects on other utilities and local resources. Data centers can use up to 300,000 gallons of water a day. That’s roughly the equivalent of 1,000 households, according to an estimate by the Brookings Institution. A South Dakota law passed in March and supported by AARP South Dakota requires data centers to publicly report on their water usage to ensure the centers pay for what they consume.
2. Protecting consumers during hard times
Older adults on fixed incomes sometimes need help paying their utility bills. AARP supports continued funding of the federal Low-Income Home Energy Assistance Program (LIHEAP), which helps 6 million low-income households afford utilities each year.
When utility companies shut off power because of unpaid bills during a heat wave or when temperatures plummet, it can pose an increased health risk to older adults. Heat-related deaths have surged more than 50 percent since 2000, according to a Yale University study. Three-quarters of those deaths were people over 65.
In states like Indiana, AARP helped advance initiatives that would prevent companies from shutting off electricity to consumers during extreme heat.
To help residents manage rising gas and electricity costs, AARP supported New York’s distribution of rebate checks of up to $200, based on residents’ income. We also backed the state’s move to establish an energy affordability index that will measure how much of a household’s income is spent on energy bills. The information will be used to evaluate the affordability of requested rate increases.
In Seattle, AARP supported the expansion of a program that discounts utility costs up to 60 percent for residents earning less than the city’s median income.
For more information about getting assistance with utility bills, contact your state or tribal LIHEAP office. Your local utility company may also have discounted rates and weatherization programs.
3. Combating rate hikes on the ground
When utility companies propose a rate hike, AARP works with expert witnesses to present alternative plans that are fairer and more affordable for consumers.
Resources to lower your utility costs:
- To find out if you qualify for energy bill pay assistance, use the LIHEAP Eligibility Tool or call the National Energy Assistance Referral hotline at 866-674-6327.
- The U.S. Energy Department’s Weatherization Assistance Program may be able to help make your home more energy efficient at no cost.
- AARP maintains a list of resources to help prevent utility scams. If you suspect fraud, learn more here.
AARP and its volunteers have also shown up in force at public comment hearings and led petitions against unfavorable rate changes.
In more than 20 states, including Texas, Arizona, Oklahoma, South Carolina and Colorado, AARP has advocated for scaling back proposed rate increases. Our AARP experts not only suggested alternate ways to lower the requested rate increases but also pushed back when utility companies tried to institute new utility bill surcharges for consumers that avoid regulatory scrutiny.
4. Promoting consumers’ voices
Consumers deserve a say in decisions that affect their bills. But utilities can be complex and highly technical, which is why AARP leans on experts to challenge unfair practices and push for policies that protect consumers.
It’s also why states are working to make utility operations more transparent so people can better understand the process and speak up when rate hikes are on the line.
This year in Illinois, AARP successfully pushed for a law that allows regulators to hold public hearings about proposed gas, electric, water or sewer rate increases if community members request one. Public hearings allow residents to speak directly to regulators and let them know their views on the utility proposals.
Wins like this ensure consumers have a seat at the table — by strengthening oversight of utility decisions and guaranteeing the public a meaningful voice in rate-setting processes.
5. Providing grants that support energy-efficient homes
Simple home improvements, like adding weatherstripping around doors and windows, can help keep heating costs low for the 77 percent of older adults who want to age in place.
But upgrades can be challenging for those with mobility issues or tight budgets, so AARP supports local efforts to improve livability for those most at risk.
One way AARP does this is through its Community Challenge grant program, which funds small-scale projects — including efforts to improve home energy efficiency — in an effort to create livable communities for adults over 50.
Over the past two years, grants have funded programs such as the distribution of weatherization kits in Portland, Maine, as well as workshops on how to make home improvements that lower energy use. In Grand Rapids, Michigan, AARP grants covered upgrades to heating, plumbing and accessibility in older adults’ mobile homes. In Omaha, Nebraska, our grants funded upgraded HVAC, plumbing and electrical systems in a low-income housing complex for older adults.
These types of improvements bring down heating and cooling bills, reducing the financial burden for older people on fixed incomes.
Every year and across the country, AARP is working on multiple fronts — from stopping unfair rate hikes to ensuring big energy users pay their own way — all with one goal: keeping utility bills affordable, especially for older Americans.
The key takeaways were created with the assistance of generative AI. An AARP editor reviewed and refined the content for accuracy and clarity.
AARP Membership
Join AARP for only $15 per year with automatic renewal. Get instant access to members-only products and hundreds of benefits, a free second membership, and a subscription to AARP The Magazine.
More From AARP
5 Ways to be an Advocate with AARP
All you need is a passion for helping adults 50-plus
Older Americans Act Could Get New Life
AARP is urging support for reauthorizing the landmark law
31 Tips for a Safer Home As You Age
Tips for making your home safer and more comfortable as you get older