Americans should brace for continued increases in electricity bills, according to recent projections from the US Energy Department. Residential rates rose nearly 5% in 2025 and are expected to climb another 4% in 2026, driven by a mix of factors including infrastructure upgrades, extreme weather, and state renewable-energy mandates. While data centers have drawn attention for their energy use, experts say they aren’t the sole cause of rising costs.
In a recent The Wall Street Journal publication Jim McMahon, head of the Energy Practice at Charles River Associates, noted: “We’re in a period of general inflation and rate rise, and that’s just attracting a lot of attention and getting a lot of pushback by regulators that are intent on keeping energy costs low.”
With utilities projected to invest over $1 trillion in grid improvements by 2029, higher rates are likely to remain a reality for households nationwide.
Click here to read The Wall Street Journal article.
