Electricity bills are becoming a potent political weapon.
President Donald Trump hammered Democrats on energy affordability during the 2024 campaign. Now Democrats are turning the issue back on Trump, saying his energy policy is driving up prices.
The New Jersey gubernatorial race will be an early test case for the issue. Democrat Mikie Sherrill is proposing to freeze utility rates on Day One (an approach with legal and practical questions). Her Republican opponent, Jack Ciattarelli, says he’ll withdraw from a regional climate program and build more natural gas plants.
As with any political wedge issue, the talking points don’t always reflect reality. Here’s how some politicians are talking about electricity prices — and what the facts say.
Trump on Truth Social, Aug. 20: “Any State that has built and relied on WINDMILLS and SOLAR for power are seeing RECORD BREAKING INCREASES IN ELECTRICITY AND ENERGY COSTS. THE SCAM OF THE CENTURY!”
The facts: The four states where wind and solar produce the greatest share of electricity — Iowa, South Dakota, Kansas and New Mexico — are among the 20 cheapest states for electricity, according to federal data. Despite the upfront cost, wind and solar are immune from price spikes on the gas market, and the rapid drop in battery prices means pairing them with storage is increasingly competitive with fossil fuel plants.
In fact, analysis of federal data by University of Oxford scientist Hannah Ritchie showed there’s not much correlation between a state’s resource mix and prices. Most renewable-heavy states have lower rates, but California has some of the costliest electricity, in part because of utility spending on wildfire prevention.
Senate Democrats on X, Sept. 8: “Prices are up on groceries, utilities, healthcare … This is all a result of the Trump administration’s chaotic policies.”
Sen. Ed Markey (D-Mass.), Aug. 7: “The big ugly bill is going to mean a lot of big ugly energy bills arriving in the mail for Americans around the country.”
The facts: Today’s Consumer Price Index report from the Bureau of Labor Statistics shows that electricity prices are up 6.2 percent from last year, rising faster than inflation.
But that can’t be pinned directly on Trump’s policies. According to the Energy Information Administration, electricity prices have been outpacing inflation since 2022. Utilities set those rates in advance, reflecting factors like the cost of new infrastructure, pressure from data centers and wildfire prevention.
Trump’s policies to block clean energy and increase tariffs are likely to increase rates further, forecasts show. Princeton University models predict that the average household could pay $165 more for electricity per year by 2030 and $280 more per year by 2035.
Energy Secretary Chris Wright on Fox Business, Sept. 2: “Denmark today has the most expensive electricity in the world. …That’s the result as you grow offshore wind. That’s not a race the U.S. wants to win.”
The facts: Danes do pay steep electricity bills, but that’s because of taxes. European Union data shows that before taxes, Denmark’s prices are actually lower than the EU average.
The U.S. government estimates that offshore wind is more expensive than most other sources, when taking into account the cost of both construction and operations using a metric known as the levelized cost of electricity. That metric, however, doesn’t reflect the role wind would play on the grid by offsetting other fuels. An analysis by the state of Connecticut, for example, found that the Revolution Wind project (recently put on hold by the Trump administration) could save ratepayers up to $500 million a year in its first three years.
Correction: The original story incorrectly stated Connecticut’s estimate of ratepayer savings. It is $500 million a year in its first three years.
