Electricity rates increased by nearly 7 percent between June 2024 and June 2025, with even more rate increases on the horizon, according to a new report.
The analysis from the Center for American Progress found that gas and electric utilities have either increased rates or are set to do so in 41 states and Washington. Nearly half of the nation’s electric customers and more than one-third of the gas customers are expected to be affected.
All told, CAP found, the effective and proposed increases will increase national spending by at least $67 billion on electricity bills and $11 billion on gas when they take effect by mid-2026.
The rate increases are due to a variety of factors, including the flood of AI data centers coming onto the grid, threats of extreme weather and the cost of updating aging infrastructure. But the Trump administration’s energy policies are likely to make the cost crunch even worse, said Lucero Marquez, CAP’s associate director for federal climate policy.
