AARP Fights Nationwide to Protect Older Adults from Utility Rate Hikes

From Montana to New Jersey, AARP has championed legislation to keep energy bills affordable and accessible

Molly Snow,

AARP

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En español

Published August 05, 2025

Kyle Hilton

As artificial intelligence accelerates the demand for power in the U.S., data centers are expanding to help meet the growing need, but AARP advocates are concerned that the costs of building and maintaining the centers may be unfairly passed on to residential customers.

For many, especially older adults on fixed incomes, higher utility bills could mean making difficult choices between paying for electricity and affording essentials like medications, food or rent. That’s why AARP is pressing lawmakers around the country to protect consumers from electricity rate hikes.

“We are working on this issue around the country,” says Jessica Padrón, AARP Nevada’s associate state director of advocacy and outreach. “Data centers need a lot of power around the clock. They should pay the full costs of serving them so as not to harm reliability or raise rates to existing customers.”

Many adults 50 and older already face steep increases in utility bills because of construction of power plants to replace aging infrastructure, new long-distance transmission lines and the spike in electric demand due to the growth in use of electricity for heating and transportation.

Energy advocates estimate residential electricity prices could reach a 12-year high this year.

Nearly two-thirds of adults 50-plus reported increases in their electric bills, and at least 3 in 4 expressed concerns that costs will continue to climb, according to a July survey from AARP’s Public Policy Institute.

“AARP is fighting to keep utility rates affordable and service dependable — because for older adults living on fixed incomes, even modest increases in monthly bills can strain tight budgets,” says Bill Malcolm, AARP government affairs director of financial security and livable communities.

This is just a sample of AARP’s advocacy work being done across the country to keep the lights on for 50-plus households.

Data centers pose a looming challenge

Though not a new phenomenon, these repositories of computer servers and storage systems have gotten bigger and more powerful with the acceleration of artificial intelligence. They require a lot of energy to function, and some may soon consume the same amount as a city.

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“Now we’re seeing gigawatt-scale data centers,” says Ari Peskoe, director of the Electricity Law Initiative at Harvard University.

To put that in context: Everyone running their air-conditioning in New Orleans on a hot summer day requires a little more than a gigawatt, Peskoe says.

By 2030, industry estimates say, data centers will consume as much as 12 percent of all U.S. electricity and could be largely responsible for quintupling the annual growth in electricity demand.

“What that means is that the power industry, the utilities in particular, are planning to develop massive amounts of new infrastructure to meet this demand,” Peskoe says.

Advocates warn that the costs for doing so could fall on everyday consumers. One projection conducted in Virginia estimated that the average residential user could see as much as a $37-per-month energy bill increase by 2040.

AARP pushes back on data center cost spillovers

AARP advocates across the country are urging lawmakers to protect consumers from subsidizing data centers’ growth and operation.

Oregon’s data center energy use more than doubled between 2021 and 2023, “placing significant strain on the grid,” says Bandana Shrestha, director of AARP Oregon.

“At the same time, residential customers [in Oregon] pay nearly 2.5 times more per kilowatt-hour than some industrial users like data centers,” she says.

With AARP’s support, Oregon passed the POWER Act in June, creating a new service classification for large energy users, such as data centers and cryptocurrency operations, to prevent costs from being passed to residential ratepayers. (POWER is an acronym for Protecting Oregonians With Energy Responsibility.)

In Montana, a bill that would have excluded some large energy providers or services from critical regulatory oversight failed in May. That’s a win for transparency at a time when changes to utilities disproportionately affect older Montanans on fixed incomes, AARP State Director Tim Summers says.

AARP New Jersey supported a new law that requires the state’s Board of Public Utilities to study the impact of data centers on utility rates, especially for residential customers.

Having large energy consumers on their own long-term rates will also be important to protecting consumers’ wallets from data center expansion in the region, AARP State Director Chris Widelo says.

“They have to pay their own way,” he says. “We can’t have residential customers paying for their operations.”

States protect against shutoffs, demand transparency

Generally, utilities can be turned off if customers are behind on their bills.

Recognizing that disconnections can threaten health and well-being, particularly for vulnerable groups during extreme temperatures, many states restrict when utility companies can shut off service for nonpayment. Still, laws can vary from state to state.

In Oregon, reports indicate a record number of disconnections in 2023, in part from the expansion of data centers and their rising energy costs, Shrestha says.

In Nevada, AARP supported a law, passed in June, that forces utilities to report shutoffs and delay them if cutting off utilities is likely to harm a customer’s health, Padrón says.

And in New Jersey, relief programs have put a moratorium on service shutoffs and reconnection fees for the summer, but Widelo and his team are pushing for legislation that would end disconnections during extreme heat.

“And we want to make it so people can self-certify their eligibility for this,” he says.

Still, understanding how to navigate the utilities sector remains a steep climb for many, given how complex the system can be.

And to make matters worse, utility companies aren’t always transparent about how they arrive at their rates, says Laurel Peltier, a volunteer with AARP Maryland and an expert on energy issues.

In May, Maryland passed the Utility Transparency and Accountability Act with AARP’s support. The new law requires utilities to disclose how they decide on issues that may affect grid reliability, energy costs and infrastructure.

There are similar bills in New Jersey that AARP’s Widelo says support greater transparency for consumers.

“Just like our legislators are required to make all their votes public to their constituents, we think utilities should do the same for the ratepayers,” Widelo says.

If you’re struggling to afford your utility bill, your utility provider should be your first call. Most utilities offer a one-time payment deadline extension or will work out a payment plan to break up your bill into smaller increments over a set period.

Bill pay assistance is also available through LIHEAP, or Low Income Home Energy Assistance Program, a federal program administered by states. To see if you qualify, use the LIHEAP Eligibility Tool or call the National Energy Assistance Referral hotline at 866-674-6327.

You can also check out the U.S. Energy Department’s Weatherization Assistance Program, which can help make your home more energy efficient at no cost to you.

AARP also maintains a list of resources to help prevent utility scams. If you suspect fraud, learn more here.

Tips for lowering your electric bill this summer

Unplug devices not in use. Save as much as 20 percent on your electric bill by pulling the plug on your coffee maker, printer, television and electronics when you’re not using them.
Try a smart thermostat. Program your air-conditioning to stop running cool air as much when you’re gone for long periods.
Block out the sun. Nearly 76 percent of sunlight enters your home and generates heat inside, so draw the blinds or curtains to help keep things cool.
Opt for LED lightbulbs that use 75 percent less energy and last longer too.
Seal air leaks in your home with caulk and weatherstripping, which can cut your energy bill between 10 and 20 percent. And the materials usually cost less than $30.
Seek out discounts. Your electric company may offer discounts for those with a low income or disabilities. It might also offer incentives to reduce your energy usage on summer days when demand is highest. All you have to do is ask!

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Molly Snow is a writer for AARP covering advocacy issues and state news. She also writes AARP's Today's Tips podcast. She previously worked at other news outlets, including Federal Times, McClatchy and Gannett.