Are electricity prices rising faster than inflation?

Electricity Prices Are Rising Faster Than Inflation Between 2019 and 2023, U.S. electricity prices surged by an average of 4.8% per year, nearly double the rate of increase from the previous decade. When adjusted for inflation, residential electricity prices have been rising faster than expected.

Are electricity prices outstripping inflation?

Electricity prices are outstripping the pace of inflation by a wide margin — a trend likely to continue in coming years, experts said.

How many utility companies will increase electricity rates this year?

Nearly 60 utility companies are set to increase electricity rates this year by more than $38 billion, affecting more than 57 million Americans, according to analysis from the Center for American Progress, a liberal think tank. President Trump recently commented on the rising prices, blaming them on renewable power.

Why are utility companies spending so much on aging electricity?

Aging Infrastructure and Rising Grid Costs: Utility companies have been investing heavily in upgrading the aging electricity grid. From 2019 to 2023, spending on distribution system upgrades skyrocketed by 50%, more than double the inflation rate. This is now the largest part of utility spending, and those costs are passed on to customers.

Will the one big beautiful bill increase energy costs?

Climate think tank Energy Innovation estimates energy provisions in the One Big Beautiful Bill Act, signed into law July 4, will increase wholesale electricity prices by 74% over the next 10 years, leading to a household energy cost increase of $170 annually by 2035.

Why are energy projects so expensive?

Beyond the transmission backlog, Gramlich says tariffs and equipment shortages are making energy projects more expensive. One example — gas turbines are extremely scarce right now, and that's holding up the expansion of natural gas power plants. "The price of an actual turbine has almost tripled," Gramlich said.