In Oklahoma, a single mother of two had her electricity cut off in January because she owed $87 on her bill — a disconnection that came despite state law banning shutoffs during extreme cold.
That case, cited by advocates tracking utility disconnections, illustrates a nationwide pattern revealed in a new federal report: U.S. Utilities cut off residential electricity 13.5 million times and gas service 1.6 million times in 2024 for unpaid bills. The numbers, compiled by the U.S. Energy Information Administration, represent the first comprehensive national count of such disconnections and signal a deepening crisis of household energy affordability, even as utility companies posted record profits and executive pay surged.
The scale is staggering. For every four American households, there was nearly one electricity or gas shutoff last year. In Oklahoma, the rate was far higher — almost one disconnection for every three households, the highest ratio in the nation. Texas led in raw numbers with over three million cutoffs, followed by Florida with 2.1 million, while Oklahoma ranked third with 572,480 disconnections despite its smaller population.
What makes the data particularly stark is the timing. These shutoffs occurred during a period of strong industry earnings. Utilities collectively reported record profits in 2024, and executive compensation climbed to new heights. The highest-paid utility CEO in the country was Bill Fehrman of American Electric Power, who received $36.6 million in 2025 — a $23.3 million increase from the prior year. At Oklahoma’s average wage, it would take a worker 615 years to earn what Fehrman made in just one year.
The contrast has not gone unnoticed. Consumer advocates and researchers point to the irony of families losing power over bills as low as eight cents while utility shareholders and executives reap windfalls. Jean Su of the Center for Biological Diversity, who advocated for the national disconnection survey, called the federal report “the most sobering portrait we have of the country’s energy affordability challenges.” She noted that the push for nationwide data collection came after inconsistent state reporting obscured the full scope of disconnections during the pandemic.
Twenty-two states, including Oklahoma, still do not require utilities to report disconnection data publicly, making this federal effort the first real attempt to measure the problem at scale. The report was mandated by language in the Consolidated Appropriations Act of 2023, which directed the EIA to study residential utility disconnections amid growing concern over energy insecurity.
Historically, mass utility shutoffs have preceded broader economic distress. The last time disconnection rates approached these levels was during the 2008 recession, when job losses and rising energy costs drove a spike in unpaid bills. Today’s surge, however, comes amid low unemployment and steady wage growth — suggesting that fixed costs like housing, healthcare, and now energy are consuming a larger share of household budgets than before.
The issue is now surfacing in statehouses. Lawmakers in several states, including Oklahoma and Florida, are challenging utility regulators over recent rate increases, arguing that customers have been overcharged. Utilities counter that rate hikes are necessary to maintain infrastructure and meet clean energy mandates. But for families facing reconnection fees, deposits, and the daily hardship of living without power or heat, the debate feels distant from their immediate struggle to keep the lights on.
How often do utilities cut off power for very small debts?
According to the Energy Equity Project, there are documented cases of utilities disconnecting service for unpaid balances as low as eight cents, though most disconnections occur when bills are over $100 and 30 days past due.
Why is Oklahoma’s disconnection rate so high relative to its size?
Oklahoma ranks first in the nation for disconnections per household, with nearly one electric or gas shutoff for every three households, due to a combination of high energy burden, limited consumer protections, and aggressive collection practices despite its cold-weather ban.
Are utility companies allowed to profit while cutting off customers’ power?
Yes, the federal report shows that disconnections rose in 2024 even as utility companies posted record profits and executive compensation reached new highs, highlighting a growing divergence between corporate earnings and household affordability.
