Here's why utility bills are skyrocketing — especially in red states

Experts are saying that "electricity is the new eggs" in the ongoing cost-of-living crisis, as a new report from Powerlines, a nonprofit that advocates for infrastructure reform to lower power costs, recently laid out what is causing utility bills to skyrocket.

According to Powerlines, state regulators allowed 43 energy rate hikes across the U.S. in 2025, resulting in roughly $11.6 billion in utility cost increases for around 56 million Americans. Most of these increases have already gone into effect, and the remaining eight will take effect soon.

These rate hikes are being put in place, according to a report on Powerlines' findings from CBS News, in order "to pay for repairing and replacing ailing infrastructure, costs linked to extreme weather events, volatile fuel prices and the increase in electricity demand," with the heightened demand being predominantly linked to AI data centers. The nonprofit's report made it clear that the vast majority of these increases are borne by consumers in by way of increases to their power bills.

"We're calling this the new politics of electricity, where electricity is the new eggs," Charles Hua, executive director at Powerlines, told reporters on Wednesday.

According to a map breakdown of the changes, most of the increased costs are being inflicted on red states, with the South — from Texas to Florida, and as north as West Virginia — accounting for $8.4 billion in approved rate hikes across nearly 14 million customers. A controversial rate hike in Florida alone will reportedly cost state residents billions more in utility costs in the coming year. The second-most inflicted region is the North Atlantic — including all of New England, as well as New York, New Jersey, Pennsylvania, Delaware and Maryland — with nearly 8 million customers suffering $1.6 billion in rate hikes.

Factors specific to each state are also to blame for certain hikes, according to Hua.

"In California, wildfires have been by far the biggest driver," the executive director explained. "In Georgia, things like extreme weather events, or the Vogtle nuclear plant, have been the biggest driver of the utility bill increases that people ultimately have felt."

He continued: "It differs a lot based on the geography, electricity market structure, as well as the state utility regulatory paradigm, and what actions the [public utility commission] is or isn't taking in that jurisdiction."

Experts broadly agree that every single power generation method possible is needed to meet surging electricity demands, including green energy programs. These efforts are being stalled out, however, as President Donald Trump's administration has made it a major policy goal to oppose things like wind and solar energy.

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