11:43 pm - February 4, 2026
Electricity prices are climbing across the United States, affecting households in red and blue states alike despite recent political messaging that frames rising costs as primarily a blue state issue. Federal data reveals that electricity prices have increased nationwide, with some of the steepest year-over-year jumps occurring in swing state Pennsylvania and red state Ohio, according to recent reports.
Residential electricity prices across the country have surged approximately 40% since 2021, according to data from nonprofit utility group PowerLines. This significant increase has substantially outpaced inflation during the same period, creating financial strain for American households regardless of their state’s political leanings.
Understanding Rising Electricity Prices Nationwide
Charles Hua, PowerLines’ founder and executive director, emphasized the magnitude of the electricity price increases. However, a spokesperson for the Edison Electric Institute, a utility trade group, disagreed with this assessment, stating that federal data shows electricity prices have largely tracked overall inflation in recent years, with significant increases occurring only in select areas.
Additionally, the cost trajectory shows no signs of reversing. Utilities requested approximately $31 billion in rate increases in 2025, more than double the rate increases they requested the previous year, the PowerLines report found. About half of that requested funding is concentrated among Southeast utilities in red states, where grid hardening, hurricane recovery efforts, and an expensive new nuclear power plant in Georgia are driving up costs for ratepayers.
Political Messaging Versus Energy Reality
White House spokeswoman Taylor Rogers stated that lowering electricity prices is a top priority for President Trump. She added that the administration is aggressively unleashing reliable energy sources like coal and natural gas to reverse what she characterized as catastrophic damage to the power grid from the previous administration.
Nevertheless, energy experts cautioned that leaning heavily on coal and natural gas could drive electricity prices even higher in the future. Despite the Trump administration framing high energy prices as a policy choice of blue states pursuing wind and solar power, experts told CNN that costs are rising in red and blue states alike and are not tied to voting patterns.
Why Electricity Prices Are High in Certain Regions
Electricity bills are indeed highest in several blue states, including California, New York, and the New England region, with Hawaii and Alaska also serving as expensive outliers. In past statements, the White House has characterized these high prices in blue states as a policy choice, with Rogers previously stating that blue states were stubbornly choosing renewable energy policies that make electricity bills unaffordable.
However, the reasons behind high bills are more complex and vary by state. One common factor they share is costly infrastructure that has come due for maintenance and upgrades. Massive, deadly wildfires have driven up costs in California, where utilities are working to harden their electricity infrastructure and spending money on clearing vegetation and trees away from power lines.
Meanwhile, New England has been upgrading and modernizing its aging distribution and transmission systems, contributing to higher consumer bills in the region. The region also faces challenges from a lack of available energy, as it is the last stop on the nation’s natural gas pipeline system and burns substantial amounts of oil to help generate power during cold winter weather.
Data Centers Driving Demand in Mid-Atlantic States
Nowhere in the country have electricity prices spiked in recent years like the mid-Atlantic region, where the world’s biggest concentration of data centers is consuming far more power than currently exists on the grid. The electricity price crunch in states like Pennsylvania, Ohio, New Jersey, Indiana, and Maryland has gotten the attention of the White House, which recently has been pushing big tech companies to pay for more of the power they consume.
Data centers and the artificial intelligence they power are driving a large increase in overall electricity demand. A 2024 report by the US Department of Energy estimated that data centers would use between 6.7% and 12% of the nation’s electricity by 2028. More tech companies are vowing to pay for the electricity and infrastructure they need for these power-hungry facilities, but federal regulations on the issue remain scarce.
Fuel Costs and Infrastructure Driving Price Increases
The high cost of energy infrastructure around the country is impacting consumers’ pocketbooks, as are rising natural gas prices. In addition to its use for home heating, natural gas is the largest source of electricity generation in the United States. Its price suddenly spiked ahead of a recent winter storm as user demand soared.
In contrast to the administration’s energy strategy, expensive coal power is making a rebound amid excessive demand for electricity. The Trump administration has forced several retiring coal-fired power plants to keep running, many of which are older facilities that were being retired because they were too expensive to be cost-competitive with gas and renewables.
Experts indicated that this move will drive electricity prices up further. As the Trump administration forced the retiring JH Campbell coal plant to remain open in Michigan, it has cost ratepayers $80 million for the first four months of running that plant beyond its retirement date, according to Dan Scripps, chair of the Michigan Public Service Commission.
That cost will appear in residential utility bills across the Midwest in the coming months, Scripps said. As the Trump administration has used similar emergency orders to keep other coal plants open in Indiana, Colorado and Washington state, residents in those states could also see price impacts this year. Michael Goggin, executive vice president of energy consulting group Grid Strategies, noted that maintenance costs to keep aging coal plants operating could be significant and will inherently increase prices for ratepayers.
The trajectory of electricity prices remains uncertain as utilities continue to seek rate increases throughout 2025. The extent to which various policy decisions, infrastructure investments, and fuel choices will impact consumer bills in different regions will become clearer as state regulators review and rule on pending rate increase requests in the coming months.
