AFFORDABILITY & ARREARS MANAGEMENT
Increasing pressures require utilities to turn arrears from a growing liability into a managed, measurable outcome. E Source helps you understand your risk, design the right strategy, and execute with confidence
FOR YOUR CUSTOMERS
Rising bills land unevenly. Low- and moderate-income customers are stretched, while large customers may consider self-generation. When customers struggle to pay, arrears grow while engagement and satisfaction drops.
FOR YOUR REGULATORS
Rate cases now face far greater affordability scrutiny. Regulators expect demonstrated customer benefit, not just engineering justification. Utilities that earn approval show impact, model alternatives, and build affordability into decisions from the start.
$5.5 billion
outstanding debt across E Source's 35 utility benchmark participants
11%
of benchmark utility customers are in arrears, but only 7% are receiving financial assistance
38%
of utility customers surveyed report their financial situation is worse in 2026 compared to 2025
ASK E SOURCE
Get a direct answer to the question you're actually facing
Sometimes you don't need a research report or case study. You need someone who has seen this problem across utilities and can tell you what worked, what didn't, and why. Ask E Source connects you to our experts for focused, fast guidance on whatever is in front of you right now.
Mailing Address
1321 Upland Drive, Suite 3413
Houston, TX 77043
800-ESOURCE (800-376-8723)
© 2026 E Source Companies LLC | All Rights Reserved
FOR YOUR ORGANIZATION
Credit agencies are watching how utilities balance capital investment and affordability. Investors expect rate case risk to be managed proactively. Additionally, expectations and goals for customer engagement and program participation remain high.
UTILITY CASE STUDY - CENTRAL HUDSON
The utilities that struggle most with arrears aren't failing at collections - they're failing at diagnosis. This case study shows what changes when you treat affordability as a risk management problem.
What Central Hudson learned about arrears risk - and how they fixed it.
INSIGHTS - AFFORDABILITY AND UTILITY RISK
Affordability pressure isn't just a customer problem, it's a growing financial risk for utilities. Drawing on E Source's proprietary customer research and arrears benchmark data from 35 utilities, this article examines why familiar arrears patterns may be masking deeper exposure, and what a more coordinated strategy looks like.
Utilities are underestimating the financial risk of affordability
See where your utility stands on arrears risk
Affordability pressures are intensifying at an unprecedented pace, and the financial risk for utilities is growing faster than most realize. Take our free benchmark survey and an E Source expert will walk you through your results and help you identify where your utility may be most exposed.
What's changed is how quickly
the consequences show up
when getting it wrong.
Utilities have always known
affordability matters.
The utilities navigating this well aren’t treating affordability as a constraint. They’re using it as a design parameter to shape how investments are sequenced, how programs are structured, and how decisions are communicated.
The impact is hitting faster—in rate case outcomes, credit ratings, customer engagement, and political opposition to the infrastructure utilities need approved.
That requires a different kind of evidence: not just engineering justification, but clear risk and customer impact analysis, peer benchmarking, and a defensible strategy that shows regulators and the public who benefits, and who pays.
30%
rise in the national average residential electricity price since 2020
31
states saw electricity price declines from 2019–2024, masking the politically volatile impact on the 17 states where prices rose sharply
1.3¢
for every dollar Americans spend goes to electricity, compared to 16.7 for healthcare, 15.6 for housing, and 7.5 for groceries
Record capital investment and rising residential bills are converging at a moment of heightened scrutiny. Electricity costs have become a political and social issue, and every rate increase now carries reputational, regulatory, and credit implications that land directly on utility leadership.
The affordability challenge runs deeper than collections.
Whether you're looking to address arrears, strengthen customer engagement, redesign assistance programs, or build a longer-term strategy, E Source can help. Talk to our team about where to start.
THE CHALLENGE
Utility arrears drive upward rate pressure, commission dissatisfaction, and reduced shareholder dividends. Left unaddressed, they create a feedback loop: losses from unpaid balances lead to higher rates and lower engagement, further eroding affordability and customer trust.
Whether you're looking to address arrears, strengthen customer engagement, redesign assistance programs, or build a longer-term strategy, E source can help. Talk to our team about where to start.
The affordability challenge runs deeper than collections.
See where your utility stands on arrears risk.
Affordability pressures are intensifying at an unprecedented pace, and the financial risk for utilities is growing faster than most realize. Take our free benchmark survey and an E Source expert will walk you through your results and help you identify where your utility may be most exposed.
Treat affordability like a risk portfolio, not a collections problem.
Arrears are a leading indication of broader affordability risk.