U.S. Electric Rates Rise 2.6% in 2025 as Utilities Seek $18 Billion in Hikes
Updated
Updated · Utility Dive · Jul 16
U.S. Electric Rates Rise 2.6% in 2025 as Utilities Seek $18 Billion in Hikes
1 articles · Updated · Utility Dive · Jul 16
Summary
Inflation-adjusted U.S. electric rates rose 2.6% from 2024 to 2025, while real retail power prices are now 3% above 2019 levels but still 6% below 2010, LBNL said.
LBNL tied the increase to decades-high utility rate requests—$18 billion in 2025—with regulators approving 64% of requested revenue increases from 2021 through 2025, pointing to more near-term price pressure.
California and the Northeast/Mid-Atlantic saw the biggest seven-year gains: California rates climbed more than 6 cents/kWh since 2019, while Maine rose more than 4 cents and several other Northeastern states gained more than 2 cents.
Transmission and distribution spending, wildfire mitigation, storm-repair recovery, community solar compensation and higher natural-gas-linked wholesale costs were key regional drivers, though Hawaii and North Carolina got some relief from lower fuel and tax credits.
Household bill burdens remain near historic lows overall, but they have risen since 2023 for lower-income customers; one-third of households earning under $50,000 spend at least 5% of income on electricity.