Regulators approved dozens of utility rate increases last year that are now pushing up household energy costs across the United States. Experts say the changes will add roughly $11.6 billion to Americans’ electricity bills and affect about 56 million customers.
Where the increases hit hardest varies by region. The South faces the largest burden — about $8.4 billion affecting roughly 14 million people — followed by the Northeast and the Midwest. The West has seen comparatively small increases so far, about $300 million, affecting roughly 24.4 million customers. Analysts say the average American currently spends about $1,833 per year on electricity, and that number is expected to keep rising as more rate adjustments take effect.
Last year state and local regulators approved 43 separate rate hikes; nearly all have already started while eight more are scheduled in the coming months. Utilities and regulators point to several drivers behind the increases:
– Aging infrastructure and higher repair or replacement costs after storms or equipment failures.
– Extreme weather events — including wildfires, floods and hurricanes — that damage lines and other equipment and increase restoration costs.
– Volatile fuel prices for natural gas, oil and coal used by many power plants.
– Rising demand from energy-intensive facilities such as data centers supporting services and applications (including AI), which require large, constant electricity supplies.
Utility leaders say rate cases are intended to cover the long-term costs of safe, reliable service and to fund upgrades and storm hardening. Consumer advocates and some policymakers warn that higher bills will strain households already facing elevated living costs and urge targeted relief programs, improved efficiency measures and regulatory scrutiny of proposed increases.
Consumers can reduce bills by improving home energy efficiency, shifting usage to off-peak hours where time-of-use pricing applies, checking for available assistance programs, and asking their utility about rate plans or billing options. Regulators typically review rate filings and hold public comment periods before approving increases; residents concerned about impacts are encouraged to participate in those processes.
