**PRESS RELEASE**
New Report: Alaska Faces Nation’s Highest Energy Burden, Hitting Rural and Low-Income Communities Hardest
Anchorage, AK – A new report, “Energy Burden in Alaska: Understanding Energy Burden for Alaska Communities and Charting a Path Forward,” reveals that Alaska faces the most severe energy burden in the U.S., with rural and low-income households hit hardest.
Produced by the University of Washington Center for Environmental Health Equity, Cook Inletkeeper, Native Movement, and the Alaska Public Interest Research Group (AKPIRG), the report finds that Alaskans spend a higher share of their income on energy than nearly any other state. Alaska ranks second-highest in overall burden and leads the nation in the percentage of communities experiencing severe energy burdens – defined as spending more than 10% of household income on energy – affecting 8.5% of census tracts. That’s nearly ten times the rate of the next highest state.
The burden is the worst in rural regions. While Anchorage and Mat-Su households face a median energy burden of 2.3%, it rises to 12.0% in the Southwest and 8.3% in the North. Statewide, the lowest-income households carry a median burden of 22.9%, with nearly 90% of tracts showing severe levels. Renters and those in poverty are especially vulnerable, facing burdens far above state averages.
“This report affirms that energy sovereignty is essential for our communities to thrive while maintaining deep cultural connections to land and water,” said Amanda Bremner, Deputy Director of Native Movement. “It also shows that a path forward is possible, as it uplifts communities that have transformed energy challenges into opportunities for lasting change. The time to act is now.”
Key drivers of high and inequitable energy burdens include Alaska’s geography, rural Alaska’s reliance on diesel-powered microgrids, and inefficient housing. Many communities are disconnected from the main grid and rely on costly imported fuels, pushing electricity prices to nearly double the national average.
The impacts of Alaska’s energy burden are far-reaching. High energy costs trap families in poverty, create cycles of debt, and divert critical resources. In Aniak, for example, a 400% spike in electric bills in 2023 severely disrupted daily life, especially for Elders.
Cold homes and unsafe heating methods contribute to respiratory issues, stress, and depression. Rising energy costs also limit access to traditional subsistence living and cultural practices – undermining food security and disrupting long-standing cultural practices.
“Alaska residents – especially in rural and Indigenous communities – are facing energy costs unimaginable in most of the country,” said June Okada, Infrastructure Funding Analyst at AKPIRG. “This crisis isn’t just about infrastructure – it’s about equity, sovereignty, and survival. With federal investments at risk, it’s more critical than ever to protect and expand these resources, and ensure the solutions are community-led.”
To address this crisis, the report calls for urgent and targeted action. Recommendations include expanding the Power Cost Equalization (PCE) program to cover essential services and Tribal facilities; increasing funding for weatherization and energy efficiency programs; and investing in Tribal and community-led renewable energy projects, such as solar and wind microgrids.
“This report contains very timely information,” said Ben Boettger, Energy Policy Analyst for Cook Inletkeeper. “The U.S. Senate is considering legislation that would weaken and then eliminate energy tax credits – namely the Investment Tax Credit and the Production Tax Credit, threatened by the ‘Big Beautiful Bill’ – that until recently weren’t available to the cooperative and municipal utilities that serve most rural Alaskans. We hope Alaska’s senators will bear in mind these extreme energy disparities as they consider where they stand in upcoming debates and votes on tax credit changes.”
Read the full report HERE. Read the two-page report summary HERE.