Naureen S. Malik (Bloomberg/Yahoo!) American households are paying more than ever before for electricity after prices surged the most in almost two years, according to the US Energy Information Administration.
The average retail price for electricity gained 7.4% in September to a record 18.07 cents per kilowatt-hour, the biggest gain since December 2023, according to data released Tuesday. Power costs are expected to climb even higher in 2026, and transportation and commercial customers are seeing similar trends, amid rising fuel costs and increased demand.
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The figures highlight the rising pressure consumers are facing from higher energy bills, as increased power consumption from data centers and industrial users boost prices. While electricity typically fluctuates from month to month due to weather, fuel costs and other reasons, the data shows that power prices have been steadily marching higher for the past five years.
A notable part of the increase comes from natural gas. September prices for the biggest source of US power were up 30% from a year earlier. READ MORE
Related articles
- Residents of 49 States and Washington, D.C., Face Increasing Electric and Natural Gas Bills (Center for American Progress)
Excerpt from Center for American Progress: This updated utility rate tracker shows rate increases or proposals set to go into effect over the next two years that, coupled with Trump administration actions, could mean that households and businesses see even higher utility bills over the next few years.
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In collaboration with the Natural Resources Defense Council, the Center for American Progress has updated a utility tracker it first published in June 2025 and updated in September 2025.
Brand new Center for American Progress and Natural Resources Defense Council (NRDC) analysis finds that upward of 107 million electricity customers (65 percent of all U.S. electric utility customers) and more than 46 million natural gas customers (59 percent of all U.S. natural gas utility customers) across 49 states and Washington, D.C., will face increased—or proposals for increased—utility rates by 2027. At least 210 U.S. gas and electric utilities have either already raised rates or proposed higher rates to go into effect within the next two years.* For some residents of Massachusetts, Missouri, Connecticut, New York, and Oklahoma, utility bills could increase by at least $35 per month—in one case, up to $60. Collectively, the in-effect and proposed rate increases would raise customers’ electricity and natural gas bills by $71.2 billion and $18.7 billion, respectively, by 2028.1
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Instead of addressing rising utility costs, the Trump administration has canceled projects for new energy supply, issued massive new tariffs that worsen supply chain concerns, and increased consumer costs by forcing expensive coal plants to run past their scheduled retirements.4 President Trump’s giveaways for the fossil fuel industry and attack on clean energy, coupled with the effects of rolling back clean energy tax credits via the Big Beautiful Bill, means that American households could spend upward of $430 more per year on their energy bills within the next decade.5 Millions more individuals and families across the country will face even higher utility bills as a direct result of the federal government’s actions over the past few months—actions that are likely to continue in the months to come.
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Why energy prices are increasing
Americans are seeing higher energy bills due to a confluence of factors, including investment in outdated infrastructure, higher natural gas prices, and increasing energy demand. Some of the associated costs leading to increasing utility bills are necessary to build a modernized electric grid, while others will continue to inflict more costs on Americans due to natural gas price volatility or unchecked data center growth. Policymakers should prioritize the protection of ratepayers and invest in solutions to lower costs for households and businesses.
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For example, transmission lines have a lifespan of 50 to 80 years, and 70 percent of current transmission lines are more than 25 years old.7 Likewise, more than half of distribution transformers in the United States are more than 33 years old, which means they are approaching their end of life.8 The aging domestic grid is vulnerable to risks that threaten energy access and affordability, which leaves Americans susceptible to power outages, increased costs from inefficient transmission and distribution, and cybersecurity risks.9
Climate-driven extreme weather is on the rise and showcases the vulnerability of the aging grid.10 Extreme weather is a leading cause of electric power outages: One study found that more than 70 percent of U.S. counties analyzed from 2018 to 2020 experienced at least eight hours of power outages during severe weather.11 As climate change continues to worsen, it will cost both utilities and consumers billions of dollars, including costs from power outage recovery and building a more resilient grid to avoid power outages.12
The United States must invest in upgrading and modernizing the electric grid. Indeed, modernizing and building a more resilient grid will require parts such as poles, electrical conductors, and finished wires that are made up of steel, aluminum, and copper.13 The Trump administration’s 25 percent to 50 percent tariffs are significantly driving up the costs of these commodities, as about 20 percent of steel, 70 percent of primary aluminum, and 40 percent of refined copper are sourced from other countries.14 In addition, ongoing legal challenges and the risk of new and changing tariffs create uncertainty, making it hard for domestic manufacturers and developers to make sourcing decisions to obtain the materials they need for grid modernization projects.15
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- Residents of Hawaii, the only state not accounted for in the tracker, already pay the highest average electricity prices in the country. U.S. Energy Information Administration, “Electric Power Monthly,” July 2025, available at https://www.eia.gov/electricity/monthly/epm_table_grapher.php?t=epmt_5_6_a.
- U.S. Energy Information Administration, “Retail electricity prices closely tracked inflation over the last 10 years,” September 11, 2024, available at https://www.eia.gov/todayinenergy/detail.php?id=63064; U.S. Bureau of Labor Statistics, “Consumer Price Index Summary,” Press release, September 11, 2025, available at https://www.bls.gov/news.release/cpi.nr0.htm.
- U.S. Energy Information Administration, “Retail electricity prices closely tracked inflation over the last 10 years.”
- Akshay Thyagarajan and others, “Residents in at Least 41 States and Washington, D.C., Are Facing Increased Electric and Natural Gas Bills,” Center for American Progress, September 9, 2025, available at https://www.americanprogress.org/article/residents-in-at-least-41-states-and-washington-d-c-are-facing-increased-electric-and-natural-gas-bills/.
- Jesse Jenkins, Jamil Farbes, and Ben Haley, “The Impacts of the One Big Beautiful Bill on the US Energy Transition – Summary Report” (Princeton, NJ: Princeton University REPEAT Project, 2025), available at https://zenodo.org/records/15801701.
- U.S. Department of Energy, “What does it take to modernize the U.S. electric grid?”, October 19, 2023, available at https://www.energy.gov/gdo/articles/what-does-it-take-modernize-us-electric-grid; National Conference of State Legislatures, “Modernizing the Electric Grid: State Role and Policy Options” (Denver: 2021), available at https://www.ncsl.org/energy/modernizing-the-electric-grid.
- U.S. Department of Energy, “What does it take to modernize the U.S. electric grid?”
- National Renewable Energy Laboratory, “Distribution Transformer Demand: Understanding Demand Segmentation, Drivers, and Management Through 2050” (Golden, CO: 2024), available at https://docs.nrel.gov/docs/fy25osti/92076.pdf.
- Shalini Bhat, “Aging Electric Infrastructure in the United States,” University of Wisconsin-Madison, May 14, 2025, available at https://interpro.wisc.edu/aging-electric-infrastructure-in-the-united-states/.
- Vivian Do, “Spatiotemporal patterns of individual and multiple simultaneous severe weather events co-occurring with power outages in the United States, 2018-2020,” PLOS Climate (2025), available at https://journals.plos.org/climate/article?id=10.1371/journal.pclm.0000523.
- Vivian Do, “Spatiotemportal distribution of power outages with climate events and social vulnerability in the USA,” Nature Communications (2023), available at https://www.nature.com/articles/s41467-023-38084-6#citeas.
- U.S. Government Accountability Office, “Electricity Grid Resilience: Climate Change Is Expected to Have Far-reaching Effects and DOE and FERC Should Take Actions,” March 10, 2021, available at https://www.gao.gov/products/gao-21-423t#:~:text=Climate%20change%20is%20expected%20to%20affect%20every,and%20increasing%20wildfires%20may%20damage%20transmission%20lines..
- International Energy Agency, “Mineral requirements for clean energy transitions” (Paris: 2022), available at https://iea.blob.core.windows.net/assets/ffd2a83b-8c30-4e9d-980a-52b6d9a86fdc/TheRoleofCriticalMineralsinCleanEnergyTransitions.pdf; International Energy Agency, “Electricity Grids and Secure Energy Transitions” (Paris: 2022), available at https://iea.blob.core.windows.net/assets/ea2ff609-8180-4312-8de9-494bcf21696d/ElectricityGridsandSecureEnergyTransitions.pdf.
- Gregory Shearer, “Metals meltdown? The outlook for aluminum, steel, and copper prices,” J.P. Morgan, May 1, 2025, available at https://www.jpmorgan.com/insights/global-research/commodities/aluminum-steel-copper-prices; Organization for Economic Cooperation and Development, “OECD Economic Outlook, Interim Report: Finding the Right Balance in Uncertain Times” (Paris: 2025), available at https://www.oecd.org/content/dam/oecd/en/publications/reports/2025/09/oecd-economic-outlook-interim-report-september-2025_ae3d418b/67b10c01-en.pdf.
- Ibid.
- U.S. Department of Energy, “Energy Department Announces Termination of 223 Projects, Saving Over $7.5 Billion,” Press release, October 2, 2025, available at https://www.energy.gov/articles/energy-department-announces-termination-223-projects-saving-over-75-billion.
- U.S. Environmental Protection Agency, “Reconsideration of 2009 Endangerment Finding and Greenhouse Gas Vehicle Standards,” Federal Register 90 (146) (2025), available at https://www.govinfo.gov/content/pkg/FR-2025-08-01/pdf/2025-14572.pdf; Climate Working Group, “A Critical Review of Impacts of Greenhouse Gas Emissions on the U.S. Climate” (Washington: U.S. Department of Energy, 2025), available at https://www.energy.gov/sites/default/files/2025-07/DOE_Critical_Review_of_Impacts_of_GHG_Emissions_on_the_US_Climate_July_2025.pdf; American Meteorological Society, “The Practice and Assessment of Science: Five Foundational Flaws in the Department of Energy’s 2025 Climate Report” (Boston: 2025), available at https://www.ametsoc.org/ams/about-ams/ams-statements/statements-of-the-ams-in-force/the-practice-and-assessment-of-science-five-foundational-flaws-in-the-department-of-energys-2025-climate-report/pdf/.
- Jenkins, Farbes, and Haley, “The Impacts of the One Big Beautiful Bill on the US Energy Transition – Summary Report”; U.S. Energy Information Administration, “Carbon Dioxide Emissions from Energy Consumption: Transportation Sector” (Washington: 2025), available at https://www.eia.gov/totalenergy/data/monthly/pdf/sec11_8.pdf.
- International Energy Agency, “Electricity Mid-Year Update 2025” (Paris: 2025), available at https://iea.blob.core.windows.net/assets/cc64f0aa-30e4-4497-9cca-1ffae2c55fe5/ElectricityMid-YearUpdate2025.pdf.
- U.S. Energy Information Administration, “Natural gas explained,” October 31, 2024, available at https://www.eia.gov/energyexplained/natural-gas/use-of-natural-gas.php; U.S. Energy Information Administration, “Forecast wholesale power prices and retail electricity prices rise modestly in 2025,” January 27, 2025, available at https://www.eia.gov/todayinenergy/detail.php?id=64384.
- Lucero Marquez, Akshay Thyagarajan, and Shannon Baker-Branstetter, “10 Trump Administration Actions That Could Lead to Higher Electricity Prices” (Washington: Center for American Progress, 2025), available at https://www.americanprogress.org/article/10-trump-administration-actions-that-could-lead-to-higher-electricity-prices/.
- MEAG Power, “Understanding the Turbulent Natural Gas Market,” Spring 2023, available at https://www.meagpower.org/understanding-the-turbulent-natural-gas-market/.
- Oklahoma Corporation Commission, “OCC Reports Finalized Uri Securitization Cost,” Press release, May 29, 2024, available at https://oklahoma.gov/occ/news/news-feed/2024/occ-reports-finalized-uri-securitization-costs.html.
- Sarah Vogelsong, “Amid global energy price spikes, Dominion customers’ bills could rise between 12 and 20 percent,” Virginia Mercury, May 10, 2022, available at https://virginiamercury.com/2022/05/10/amid-global-energy-price-spikes-dominion-customers-bills-could-rise-between-12-and-20-percent/.
- Virginia State Corporation Commission, “Order establishing 2022-2023 Fuel Factor,” Case No. PUR-2022-0004, September 16, 2022, available at https://www.scc.virginia.gov/docketsearch/DOCS/7nql01!.PDF; John Hood, “Dominion Energy bills increase due to rising fuel costs,” 12 On Your Side, September 19, 2022, available at https://www.12onyourside.com/2022/09/19/dominion-energy-bills-increase-due-rising-fuel-costs/.
- U.S. Energy Information Administration, “U.S. wholesale electricity prices were lower and less volatile in 2024,” January 16, 2025, available at https://www.eia.gov/todayinenergy/detail.php?id=64284.
- U.S. Energy Information Administration, “Short-Term Energy Outlook, October 2025” (Washington: 2025), available at https://www.eia.gov/outlooks/steo/pdf/steo_full.pdf.
- U.S. Energy Information Administration, “Short-Term Energy Outlook, June 2025” (Washington: 2025), available at https://www.eia.gov/outlooks/steo/pdf/steo_full.pdf; Milena Pressentin and others, “LNG Projects Are A Bad Deal for Germans and Americans” (Washington: Center for American Progress, 2025), available at https://www.americanprogress.org/article/lng-projects-are-a-bad-deal-for-germans-and-americans/.
- U.S. Energy Information Administration, “Short-Term Energy Outlook, October 2025”; Chris Martinez, “LNG Exports Raise Natural Gas Prices for Americans,” Center for American Progress, November 6, 2023, available at https://www.americanprogress.org/article/lng-exports-raise-natural-gas-prices-for-americans/; U.S. Energy Information Administration, “Short-Term Energy Outlook Data Browser,” October 7, 2025, available at https://www.eia.gov/outlooks/steo/data/browser/#/?v=15.
- U.S. Department of Energy, “President Trump is Delivering on LNG,” June 11, 2025, available at https://www.energy.gov/sites/default/files/2025-06/Jera_LNG_Factsheet_061125.pdf.
- U.S. Energy Information Administration, “After more than a decade of little change, U.S. electricity consumption is rising again,” May 13, 2025, available at https://www.eia.gov/todayinenergy/detail.php?id=65264#:~:text=After%20more%20than%20a%20decade,U.S.%20Energy%20Information%20Administration%20(EIA).
- Lalit Batra and others, “Rising current: America’s growing electricity demand” (Reston, VA: ICF, 2025), available at https://www.icf.com/-/media/files/icf/reports/2025/energy-demand-report-icf-2025_report.pdf?rev=c87f111ab97f481a8fe3d3148a372f7f.
- McKenna Beck and Jackson Morris, “At the Crossroads: A Better Path to Managing Data Center Load Growth” (Washington: Natural Resources Defense Council, 2025), available at https://www.nrdc.org/resources/crossroads-better-path-managing-data-center-load-growth.
- Mike Jacobs, “Connection Costs: Loophole Costs Customers Over $4 Billion to Connect Data Centers to Power Grid” (Cambridge, MA: Union of Concerned Scientists, 2025), available at https://www.ucs.org/sites/default/files/2025-09/PJM%20Data%20Center%20Issue%20Brief%20-%20Sep%202025.pdf.
- Leonard Nicoletti, “AI Data Centers Are Sending Power Bills Soaring,” Bloomberg News, September 29, 2025, available at https://www.bloomberg.com/graphics/2025-ai-data-centers-electricity-prices/?embedded-checkout=true.
- Batra and others, “Rising current: America’s growing electricity demand.”
- The White House, “Winning the Race: America’s AI Action Plan” (Washington: Executive Office of the President, 2025), available at https://www.whitehouse.gov/wp-content/uploads/2025/07/Americas-AI-Action-Plan.pdf.
- Lazard, “LCOE Lazard” (Washington: 2025), available at https://www.lazard.com/media/uounhon4/lazards-lcoeplus-june-2025.pdf.
- Tom Rutigliano, “Building Data Centers Without Breaking PJM,” Natural Resources Defense Council, September 30, 2025, available at https://www.nrdc.org/bio/tom-rutigliano/building-data-centers-without-breaking-pjm.
- Lucero Marquez, Akshay Thyagarajan, and Shannon Baker-Branstetter, “10 Trump Administration Actions That Could Lead to Higher Electricity Prices” (Washington: Center for American Progress, 2025), available at https://www.americanprogress.org/article/10-trump-administration-actions-that-could-lead-to-higher-electricity-prices/.
- Mariel Lutz, Alia Hidayat, and Kate Petosa, “The Trump Administration Is Blocking Wind Power Projects That Would Create Thousands of Jobs,” Center for American Progress, August 25, 2025, available at https://www.americanprogress.org/article/the-trump-administration-is-blocking-wind-power-projects-that-would-create-thousands-of-jobs/; U.S. Bureau of Land Management, “Esmeralda Seven Solar Project,” available at https://eplanning.blm.gov/eplanning-ui/project/2020804/510 (last accessed October 2025).
- MEAG Power, “Understanding the Turbulent Natural Gas Market”; Lazard, “LCOE Lazard.”
- Jenkins, Farbes, and Haley, “The Impacts of the One Big Beautiful Bill on the US Energy Transition – Summary Report.”
- U.S. Department of Energy, “Federal Power Act Section 202(c): Midcontinent Independent System Operator (MISO),” August 20, 2025, available at https://www.energy.gov/ceser/federal-power-act-section-202c-midcontinent-independent-system-operator-miso-0.
- Michael Goggin, “The Cost of Federal Mandates to Retain Fossil-Burning Power Plants” (Washington: Grid Strategies LLC, 2025), available at https://www.sierraclub.org/sites/default/files/2025-08/grid-strategies-report.pdf.
- U.S. Department of Energy, “Energy Department Announces $625 Million Investment to Reinvigorate and Expand America’s Coal Industry,” Press release, September 29, 2025, available at https://www.energy.gov/articles/energy-department-announces-625-million-investment-reinvigorate-and-expand-americas-coal.
- Michelle Solomon, “Coal Power 28 Percent More Expensive In 2024 Than In 2021” (San Francisco: Energy Innovation, 2025), available at https://energyinnovation.org/wp-content/uploads/Coal-Cost-Update.pdf.
- U.S. Energy Information Administration, “Coal explained,” September 14, 2023, available at https://www.eia.gov/energyexplained/coal/imports-and-exports.php.
- One Big Beautiful Bill Act, Public Law 21, 119th Cong., 1st. sess. (July 4, 2025), available at https://www.congress.gov/bill/119th-congress/house-bill/1/text; U.S. Geological Survey, “Mineral Commodity Summaries” (Reston, VA: U.S. Department of the Interior, 2025), available at https://pubs.usgs.gov/periodicals/mcs2025/mcs2025-iron-steel.pdf.
- Jenkins, Farbes, and Haley, “The Impacts of the One Big Beautiful Bill on the US Energy Transition – Summary Report”; U.S. Bureau of Labor Statistics, “Consumer Price Index Summary.”
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