Texas, facing record-low temperatures this February, lost control of the power supply, leaving millions without access to electricity. But the crisis was not equally felt, exposing inequities in the energy system that disproportionately impact low-income Texans of color.

Black and Latinx communities were the first to face power outages and could be the last to be reconnected. Low-income households already spend a disproportionate amount of income on utilities, in part because their homes often lack good insulation. In the wake of the storm, they lack the financial resources to rebound, and rising energy prices due to Texas’ deregulated electricity market will leave many families unable to pay their utility bills.

This issue is not limited to Texas. Across the U.S., low-income households are impacted by energy burden – that is, the high percentage of household income spent on gas and electricity. According to the U.S. Department of Energy, pre-pandemic 37 million households suffered from energy insecurity. This issue is particularly acute for Native American (60+%), Black (50%), and Latinx (40%) households. Low-income households typically pay more than three times their household income percentage on utilities compared with higher-income households (7.2% vs. 2.3%). Black and Latinx households specifically spend disproportionate amounts of their income on energy – experiencing energy burdens 64% and 24% greater than white households, respectively.

The racial, geographic, and income-based disparities in energy burden require fairer distribution of the benefits and burdens of energy production and consumption. In practice, this means reducing mounting energy costs so families can meet their basic needs, making homes and communities healthier by increasing access to energy efficiency and clean energy, and ensuring that energy policy reflects the needs of all communities.

Read the full article about energy justice by Rachael Isacoff at The Rockefeller Foundation.