Press Release | July 11, 2024

Nearly half of Memphis families face high energy burdens, according to new report

MEMPHIS, Tenn. — A new study shows that more than 48 percent of Memphians face high energy burdens, meaning a larger percent of their income goes to paying their power bill.

Energy burden measures the percent of somebody’s paycheck going toward utility bills. An energy burden is considered ‘high’ when it is above six percent. High energy burdens have a ripple effect throughout a community, can hurt local economies, and often times force families to give up other needs just to keep the lights on. 

The national average for energy burden is below four percent, but in Memphis, the median energy burden is 5.6 percent. In some areas, including predominantly Black communities, the energy burdens are even higher. South Memphis, for example, faces a median energy burden of seven percent.

The report also showed that 30,000 Shelby County families are experiencing staggeringly severe energy burdens of more than 20 percent, meaning a fifth of their income goes to their energy bills.

“This study shows what we regularly hear from community members in South Memphis. Too many families in South Memphis are forced to go without basic needs like food, housing, and medicine because a large portion of their income is being used to pay their utility bills,” said KeShaun Pearson, president of Memphis Community Against Pollution. “It’s past time for TVA to stop its decades-long history of polluting this majority Black and lower-income community and invest in cheaper and cleaner energy sources that will help decrease the energy burden and air pollution in Southwest Memphis.” 

High energy burdens can be caused by many things, but one of the biggest causes is inefficient homes that are not properly insulated or lack efficient heating, cooling, lighting, and appliances. Utility investments in energy efficiency programs can lower power bills and lessen energy burdens for families.

Despite its obvious lack of investment in energy efficiency, the Tennessee Valley Authority is moving forward with costly and dirty fossil fuel plans that will lead to higher power bills in Memphis and across the region. The federal utility is planning to spend billions on eight new gas power plants—including the proposed Allen Gas Project in South Memphis, which would be built directly next to an already-operating gas plant. TVA recently raised rates for its 10 million customers, in part because of its massive gas buildout.

“TVA should be aggressively ramping up investments in energy efficiency programs that could provide relief to tens of thousands of Memphians that are struggling to keep the lights on. Instead, it is just plowing ahead with plans to build expensive and outdated methane gas plants,” Amanda Garcia, a senior attorney at the Southern Environmental Law Center, said. “So far, TVA has refused to look at energy efficiency as part of a strategy to avoid forcing customers to foot the bill for its multi-billion-dollar gas expansion. Building unnecessary new gas plants will make it even more difficult for struggling families to pay their power bills.”

Increasing energy efficiency doesn’t just lower individual energy burden, it’s good for everybody. It means that utilities like TVA don’t have to build or generate as much power, leading to savings for all its customers. Instead of building new gas plants and pipelines, TVA should be investing in energy efficiency programs and building cheaper energy solutions like solar and wind power. These reliable energy sources don’t rely on volatile fossil fuels and are proven to save money.

Are you a reporter and would like more information? Please visit our press contact page for a full list of SELC’s press contacts.

Press Contacts

Eric Hilt

Senior Communications Manager (TN)

Phone: 615-921-9470
Email: [email protected]

Partner Contacts

Yolonda Spinks

Memphis Community Against Pollution

Phone: 901-859-1445
Email: [email protected]