The Growing Disconnect Between Measured and Experienced Affordability: A New Framework for Affordability

For decades, the energy sector has relied on a relatively stable set of indicators to assess the cost of service to customers and their ability to pay. Metrics like energy burden, expenditures as a percentage of household income, and average residential electricity costs have served as foundational tools for regulators, utilities, and policymakers seeking to assess customer impact. By many of these measures, electricity in the US remains comparatively affordable, with residential electric expenditures representing a relatively stable share of household spending over time.