New Energy Crisis for American

Electric and gas utilities across the United States requested a record-breaking $30.5 billion in rate increases during 2025, according to a January 2026 report. That figure is more than double what utilities sought in 2024 — and it impacts over 81.1 million customers across 41 states and Washington, D.C.

These requests reflect a growing national crisis: aging infrastructure, exploding demand from AI data centers, and rising electricity usage are putting unprecedented strain on the power grid — and consumers are paying the price.

And the worst may still be ahead.

The Numbers Behind the Energy Surge

The data reveals just how rapidly energy costs are escalating:

$30.5 billion in rate increase requests filed in 2025 — the largest volume ever recorded
More than double the total sought in 2024
81.1 million customers affected nationwide
41 states + Washington, D.C. included in filings
3.6% increase in average electric and gas costs year-over-year in Q3 2025
Some regions saw spikes of 10% or more during peak periods

These increases are not isolated. They represent a structural shift in how energy is generated, delivered, and priced in the U.S.

Why Are Utility Rates Rising So Fast?

Experts describe the current environment as a nationwide “scramble to rebuild” after decades of underinvestment. Four major forces are driving the surge:

⚡ 1. AI & Data Center Demand

The explosion of artificial intelligence and cloud computing has triggered a massive buildout of energy-hungry data centers, placing extraordinary strain on local grids.

🏚️ 2. Aging Infrastructure

Much of the U.S. power grid is decades old. Utilities are racing to replace failing lines, substations, and pipelines — passing those costs directly to consumers.

🔌 3. Electrification & Manufacturing Reshoring

Electric vehicles, electric heating, and industrial reshoring have dramatically increased electricity demand from both homes and businesses.

🌪️ 4. Climate & Resilience Pressures

Extreme weather events are forcing utilities to harden grids, underground lines, and build redundancies — all of which come with steep capital costs.

The Economic and Political Fallout

The impact is already being felt nationwide:

Energy poverty is rising, with more households struggling to afford basic utilities
Utility bills became a top political issue in 2025, pressuring lawmakers on both sides
Policy shifts are underway, with some states moving to limit utility profits
Federal support is shrinking, as the Department of Energy restructures or withdraws billions in loan guarantees, including the $4.9B Green Belt Express project

While not all of the $30.5 billion in requests will be approved, regulators agree on one thing:

Upward pressure on utility bills is here to stay — with high costs expected to continue into 2026 and beyond.

What This Means for You

Most consumers believe they’re stuck paying whatever rate their utility assigns.

That’s not true.

Utilities are responsible for delivering power — not for ensuring you’re on the best rate, supplier, or pricing structure. Rates, fees, and market conditions change constantly, and utilities are not required to notify you when better options become available.

That responsibility belongs to you.