Electric bills are rising while pathways for aid are threatened at state, federal level
A utility crew restores power at a New Orleans intersection after Hurricane Francine in September 2024. (John Gray/Verite News)
NEW ORLEANS – The recent end to a state-led energy efficiency program combined with massive layoffs last month at the federal agency that provides electric bill assistance to low-income households have residents of greater New Orleans worried about how they are going to cool their homes during the hottest months of the year.
The Louisiana Public Service Commission, which regulates electric utilities for most of the state, eliminated an energy efficiency program that it had been working on for over a decade in mid-April. In early April, the Trump administration fired all of the Low Income Energy Assistance Program's staff, leaving the future of the program in jeopardy.
Without state-level plans to increase energy assistance, spending on electricity will probably rise, experts said. And with LIHEAP in the lurch, people might not be able to access assistance they need to pay those high bills.
Logan Burke, the executive director of the Alliance for Affordable Energy called the LIHEAP cuts 'outrageous,' especially because there are already few avenues for energy bill assistance. Burke said that Louisiana spent 7% of its LIHEAP funds on weatherizing homes last year, and that if LIHEAP doesn't continue, then there will be no low-income weatherization or efficiency programs in the state.
'The problem here is that those are the minimal backstops that people have depended on for decades — the LIHEAP dollars — both for bill assistance and weatherization of housing, and without them, we simply lose billions of dollars of bill assistance and efficiency upgrades in low income housing,' Burke said.
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Local LIHEAP administrators are silent on how the layoffs will affect residents or the future funding. The Louisiana Housing Corporation — which is in charge of distributing funds to parish organizations that then go through applications and work with residents to provide aid — did not respond to phone calls. Neither did JeffCAP, Jefferson Parish's LIHEAP distributor, or Total Community Action in New Orleans.
Even though the average unit cost of electricity is lower in Louisiana than much of the rest of the country, Louisianians use the highest amounts, leading to high bills, said Logan Burke, executive director of the Alliance for Affordable Energy, and average rates have only been increasing in recent years. Between 2018 and 2024, the base rate for energy bills in Louisiana increased 40%, and is expected to increase 30% in the next 15 years, according to analysis from the financial consulting firm BAI Group. Extreme weather, old housing infrastructure and Louisiana's reliance on natural gas, a volatile market, are all partly responsible for the high prices, experts said.
'A lot of our housing stock is old and simply isn't good at retaining heated and cooled air,' Burke said. 'So a lot of our energy is just wasted around leaks and cracks around our windows and doors.'
For the past 14 years, the Louisiana Public Service Commission had been working on an energy efficiency program that would have helped residents identify ways to consume less energy by making every unit of power go further — through renovations such as increased insulation in homes or upgraded thermostats, Burke said. But the commission abruptly voted to dissolve the program less than a month before contractors were slated to report to the commission about how the program would work. Republican commissioners said the administrative costs of the program would be too high.
The decision frustrated residents of the greater New Orleans area who struggle to pay their energy bills and were looking for state support to lower costs.
'Because if you go around sealing up all these cracks and holes in these old houses, don't you think now they're going to use less to heat and cool their homes?' said Dorginia Lucas, a Metairie resident. 'That's why I would drop it too if I was them. 'Why would I help you lower your bill?' That's how I look at it.'
Lucas said she has been working since 14 years old, but still struggles to pay her utility bills, which range between $249 to $440. She said dealing with Entergy's billing system is frustrating and overwhelming.
A recent report by the Louisiana Association of United Ways, a coalition of nonprofits that connect residents with health and financial aid resources, found that wages haven't been increasing at the same rate as basic necessities in recent years, making household costs difficult to cover, even in families with steady incomes. And utility assistance has been one of the most sought-after aid requests over the past decade in Orleans Parish (with an exception in 2021 after Hurricane Ida), according to caller data from counseling service center Vialink.
Entergy distributes funds to nonprofits for its utility assistance program, 'The Power to Care,' that aids seniors and people with disabilities. The New Orleans Council on Aging distributes those funds to residents in Orleans Parish.
Howard Rodgers, the executive director of the New Orleans Council on Aging, said there is a 'tremendous need' for assistance paying utility bills in the city. Rodgers said seniors particularly need assistance because they might rely on benefits and need to pay for medication, which might lead them to deprioritize utility payments to the detriment of their health.
The New Orleans Council on Aging helps around 10,000 to 15,000 people every year through 'The Power to Care' program, Rodgers said, and most funds come from charitable donations that Entergy matches. But the program has also changed in recent years. Due to high demand, the Council on Aging no longer accepts walk-ins for utility bill assistance. Additionally, those seeking help have a $500 cap on assistance every year. Rodgers said this allows the council to provide assistance to more people.
That might not go too far for many residents. A 2023 Verite News analysis found that the average Entergy bill in New Orleans was $179 in 2022.
And consumer advocates worry that the situation could get worse. Last year, the New Orleans City Council voted to approve the sale of Entergy New Orleans's gas business utility to a company backed by private equity. Energy advocates and community members spoke out against the sale, saying that it might increase rates for energy users. Louisiana's investments in exporting liquified natural gas abroad could also lead to higher energy costs at home, according to a Department of Energy report from last September.
Jannie Yarbrough, a retired New Orleans resident, said she lives alone and pays around $185 to $200 per month, a squeeze on fixed retirement income. Yarbrough said the city and state could be doing more to lower energy costs.
Yarbough said she could ask her daughter to help out, but doesn't want to depend on her.
'I'm blessed that I have a daughter that could pay, but I'm not trying to depend on my child,' Yarbrough said.
Despite the rising costs of gas, public assistance pathways for utility payments are also dwindling at the local level. Last July, the city's Office of Community Development shuttered its emergency rental and utility assistance program after four years. The office didn't respond to requests for comment.
Entergy has its own energy efficiency program, but it still gets paid for funds it may lose from lower energy energy consumption — a program called 'Quick Start,' according to the Alliance for Affordable Energy. Quick Start will expire at the end of the year, and on May 19 the Louisiana Public Service Commission voted to initiate a three month process to look at and make changes to the program and another that helps public entities with energy efficiency.
Under an independent, state-run energy efficiency program, Entergy wouldn't be able to earn back potential profits it lost from energy efficiency upgrades.
Rodgers said the Council on Aging is anticipating a higher demand for utility assistance since the LIHEAP layoffs. He said he has already spoken to Entergy employees about the possibility of the end of LIHEAP. An Entergy New Orleans spokesperson did not respond to questions about if and how assistance pathways might change if LIHEAP ended, but said the company's rates are consistently below the national average and that customers can contact the utility for bill management resources.
'We won't know what to do until it happens,' Rodgers said. 'We can think about it, plan for it, but then we are just going to have to be reactionary when that happens.'
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This article first appeared on Verite News New Orleans and is republished here under a Creative Commons Attribution-NoDerivatives 4.0 International License.
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