Kentucky and many other states face challenges in energy affordability, with a significant portion of its population grappling with high energy costs relative to income levels. The COVID-19 pandemic further exacerbated these challenges, as job losses and economic uncertainties strained households' abilities to meet energy expenses. When a household's energy burden, the percent of gross income that is spent on energy costs, reaches certain levels, many Kentuckians can be faced with difficult decisions that related to insecurity in energy, food, medical, and many other aspects of life.
While Kentucky has relatively low energy prices, specific demographic, housing, and utility components can be indications of increased energy burden. Kentucky's average energy burden is 3%, however, for low-income and disadvantage communities, energy burden can be as high as 18%.
Energy affordability is a complex issue involving many factors and consideration across society. Addressing these issues involve actions to improve educational attainment, improve the energy efficiency of households, and continued efforts to provide energy at a low cost, along with targeted assistance programs to support vulnerable communities.