Energy Equity

Improving energy equity is a key component of the fight for environmental justice. Low-income ratepayers pay a greater proportion of their income for energy utilities, and they often pay more per capita, as overburdened ratepayers are less likely to have newer homes and appliances or to be able to afford energy efficiency improvements. Thus, utility rates operate as a regressive tax on the most vulnerable residents.

Not only do lower-income energy users tend to pay more on the front end for their utilities, but they are overwhelmingly disproportionately burdened by the hidden costs, of electricity generation as well. Fossil-fuel coal and gas plants are unfailingly located in lower-income and rural communities, where residents bear the brunt of the health effects, lower property values, and reduced quality of life as a result of pollution from the construction and operation of electricity generation, and storage facilities. When new pipelines are constructed, it is lower-income and rural residents whose property is seized by eminent domain. While utility companies are guaranteed a substantial return on investment, ratepayers are stuck paying the passed-on costs from new infrastructure brought online for the benefit of large data centers and manufacturing companies. Residents near fossil fuel plants also pay in the unseen costs of hospital stays, days out of school or work because of asthma or other health impacts, costly prescriptions, and reduced life expectancy. Lower-income communities are also likely to suffer disproportionately from the effects of climate change resulting from the continued expansion of fossil fuel electric generation.