Rising Electric Bills Trigger State Scrutiny — Immediate Relief for Consumers Remains Elusive

A public backlash over electricity price increases has pushed state regulators and lawmakers into the spotlight, but experts say there is little short-term relief in store for most customers.

Public Outcry and a Maine Case

When the Maine Public Utilities Commission last considered a rate increase a few years ago, it received fewer than 90 public comments. This year, amid sharply higher energy costs, more than 800 people submitted remarks, attended hearings and demonstrated outside agency meetings. Last month the commission rejected a request that would have raised bills for Central Maine Power customers by about $35 a month. Commission Chair Philip Bartlett said affordability across the economy played a major role in the decision.

“There’s no question that affordability is increasingly an issue, not just with respect to electricity prices, but across the entire economy. And people are feeling enormous pressure.” — Philip Bartlett, Maine Public Utilities Commission

Why Prices Are Rising

Multiple forces are driving higher electricity costs: disruptions to global oil and gas markets linked to Russia’s war in Ukraine; increasing frequency of extreme weather; and rising electricity demand from data centers and artificial intelligence applications. Utilities also point to major investments needed to modernize and harden the electric grid as a key cost driver.

National Trends and Projections

Between January and September of this year, average residential electricity rates rose 11.7%—more than three times the pace of inflation—according to the National Energy Assistance Directors Association. Average monthly electric bills climbed nearly 30% between 2021 and 2025, increasing from $121 to $156. Consulting firm ICF projects residential rates could increase 15%–40% by 2030, with some rates potentially doubling by 2050 without major policy changes.

Policy Responses and Political Pressure

Policymakers and regulators have proposed a range of responses, including temporary rate freezes, bill credits and expanded energy-assistance funds. In New Jersey, regulators issued $100 credits while the incoming governor campaigned on an emergency-rate-freeze pledge. In Florida, regulators approved a $6.9 billion rate increase for the state’s largest utility; the typical monthly bill there is expected to rise to roughly $136.64 next year after earlier hikes.

Republican and Democratic officials alike have voiced concern. Indiana’s governor asked his consumer advocate to scrutinize utility profits, saying investors — not ratepayers — should bear more of the impact. Meanwhile, watchdog groups argue that the regulated utility model can incentivize excessive capital spending because utilities are typically guaranteed a return on investments.

“What they're allowed to charge customers is usually set by a group of three or five people.” — David Pomerantz, Energy and Policy Institute

Economic Pain and Assistance Programs

Rising bills are pushing households into arrears. An analysis by the Century Foundation and Protect Borrowers found roughly 1 in 20 U.S. households—about 14 million people—had utility bills at least 90 days past due in June; average overdue balances rose from $597 in March 2022 to $789 in June 2025. The federal Low Income Home Energy Assistance Program (LIHEAP) faced funding threats in recent years, although some funds were released amid political pressure. Several states have increased their own assistance programs—Oregon doubled its supplemental fund from $20 million to $40 million this year.

What Comes Next

State regulators have limited power to change the fundamental market dynamics pushing prices higher, and utilities are forecast to continue large capital investments. Investor-owned utilities are on track to spend about $208 billion this year and are projected to invest more than $1.1 trillion from 2025–2029. With demand rising and major grid upgrades underway, experts say consumers should not expect quick, large-scale relief.

Stateline reporter Kevin Hardy contributed reporting.