Bridging the Gap Between Sustainability and Affordability in the Energy Utility Industry

Key Takeaways:

• Customers increasingly assume energy utilities are doing the right thing environmentally. However, as sustainability efforts become more visible, many customers also associate them with higher energy bills. This creates a growing tension: people want cleaner energy, but not at the expense of affordability.
• Utilities aren’t just being judged on what they do—they’re being judged on how well they explain it. Without clear communication, customers may misunderstand the cost and value of environmental investments. Bridging the gap requires showing how sustainability efforts deliver both short-term and long-term benefits.
• High-performing utilities stand out by framing environmental efforts in ways that resonate with customers by connecting sustainability directly to cost savings and stability, positioning it as part of overall system reliability and long-term value, and presenting it as one of several balanced priorities (alongside affordability and reliability).

On Earth Day, the energy utility industry has real progress to point to.

Results from Escalent’s Cogent Syndicated Utility Trusted Brand & Customer Engagement: Residential™ study indicate that customers are starting to recognize industry efforts in environmental sustainability. In the first quarter of 2026, the industry’s Environmental Dedication Index increased by four points year-over-year to 660 (on a 1,000-point scale), marking a meaningful shift after remaining flat throughout 2024. This uptick suggests customers are recognizing the work their energy utilities are doing.

But that progress comes with a complication: as customer perceptions of utilities’ environmental efforts improve, perceptions of affordability are under increasing pressure.

Customer Expectations of Environmental Sustainability and Affordability vs. Reality: The New Challenge for Energy Utilities

Today’s customers largely assume their energy utility is doing the right thing when it comes to the environment. Reducing emissions, supporting renewable energy and operating responsibly are no longer seen as differentiators—they are baseline expectations. Much like reliability and customer service, environmental stewardship has become part of what it means to be a modern energy utility. But while the expectation is clear, the perception of impact may be more complicated.

At the same time customers assume their energy utility is making progress on environmental goals, many also associate that progress with rising costs. Investments in renewable energy, infrastructure and system modernization—while essential—are often experienced through the lens of monthly bills. Without clear context, customers may connect support for renewables with higher prices, even if that relationship is more nuanced in reality.

This creates a clear tension: customers expect their energy utility to take the lead on environmental issues yet they remain highly sensitive to any impact on bill affordability. Bridging that gap requires more than action—it demands clarity. Energy utilities must help customers see how environmental investments deliver tangible value, both in the near term and over the long run.

Earth Day Insights: How Top-Performing Energy Utilities Lead in Environmental Stewardship and Customer Trust

This Earth Day, Escalent highlights the energy utilities that customers recognize as leaders in environmental stewardship.

Utility	Environmental Dedication Index
Seattle City Light	751
OUC	750
TECO Peoples Gas	734
OPPD	730
SMUD	729
Florida City Gas Company	728
Intermountain Gas Company	726
Pepco	723
Florida Public Utilities	721
Idaho Power	721
Cascade Natural Gas	720
Atmos Energy – South	714
LADWP	711
Georgia Power	710
Salt River Project	708

Although there is no single solution for increasing Environmental Dedication Index scores, top-performing energy utilities offer a variety of examples:

1. Some higher-scoring utilities are not framing sustainability as a trade-off—they are positioning it as part of affordability.

Seattle City Light exemplifies this approach by consistently linking its carbon-free, hydro-based energy mix to both environmental leadership and low-cost, stable rates. Its communications reinforce this connection by tying programs such as energy efficiency and electrification directly to customer savings, while emphasizing equitable access through bill assistance initiatives. The result is a cohesive narrative in which sustainability and affordability are not competing priorities, but mutually reinforcing outcomes.

2. Some higher-scoring utilities are integrating environmental progress into a broader narrative of system value rather than positioning it as a direct affordability driver.

TECO Peoples Gas reflects this approach by consistently pairing sustainability with its core focus on delivering safe, reliable and accessible energy. Its communication positions initiatives such as renewable natural gas, infrastructure modernization and energy efficiency as ways to improve system performance and long-term cost effectiveness, while reinforcing customer value through rebates and assistance programs. The result is a narrative in which environmental efforts are framed as part of responsible system stewardship—supporting reliability and affordability over time rather than acting as a standalone benefit.

3. Some higher-scoring utilities embed environmental commitment within a broader narrative of balanced performance, presenting sustainability and affordability as parallel priorities.

Idaho Power exemplifies this approach by consistently positioning its mission as delivering reliable, affordable, clean energy—treating sustainability as one of several priorities to be managed together. Its communication highlights a clean energy mix anchored in hydro resources alongside below-average rates and long-term cost stability, reinforcing that investments in renewables and grid planning are designed to advance environmental goals without compromising affordability. The result is a narrative focused on balance, where sustainability is pursued alongside—not as a driver of—reliable, cost-effective service.

Not all higher-scoring utilities exhibit all three traits and some lower-scoring utilities are already doing many of these things well.

What matters most is ensuring your commitment to environmental stewardship is clearly and consistently communicated so customers understand, rather than question, the role your utility is playing in building a cleaner, more sustainable future.

Turning Customer Insights Into More Effective Environmental Communication Strategies for Energy Utilities

Across the industry, customer perceptions of environmental commitment vary widely by age, income and other demographic factors—and these differences can be just as pronounced from one utility to another. Understanding these nuances is key to communicating effectively.

Escalent’s Cogent Syndicated Utility Trusted Brand & Customer Engagement: Residential™ study provides a flexible framework for exploring these insights in depth. Subscribers can segment their data to better understand how different customer groups perceive environmental efforts, what matters most to these customers and how they prefer to receive information. Many electric, natural gas and combination utilities pair these insights with custom research to refine messaging, target communication and improve overall impact.

To learn more about how this study can help your utility uncover actionable insights and drive meaningful results, fill out the form below to connect with Escalent’s team of energy and utility industry experts today.

 

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