Why Are Electric Bills Going Up? What Federal Data Shows

In a May 2025 Today in Energy article, EIA wrote that retail electricity prices had risen faster than inflation since 2022 and that it expected them to keep increasing through 2026. It expected the nominal US average electricity price to rise about 13 percent from 2022 to 2025. For comparison, EIA found that from 2013 to 2023 electricity prices closely tracked inflation.

The EIA data on this site, final 2025 figures from Form EIA-861, put the US average residential price at 17.23 cents per kWh. The average household used 874 kWh a month and paid $150.68.

• Spending on aging equipment. EIA says utilities are investing more capital to replace or upgrade aging generation and delivery infrastructure, and that distribution spending has overtaken spending on transmission and production.
• Fuel prices. The generation part of a bill follows wholesale fuel prices for natural gas and coal, with a lag that depends on customer contracts.
• Supply disruptions from 2020 to 2022. EIA points to the pandemic recovery and Russia's invasion of Ukraine as events that raised energy prices.
• Weather and wildfire costs. A Berkeley Lab report prepared with the Brattle Group lists transmission and distribution spending, extreme weather and wildfire costs, and natural gas price swings among the factors that affect retail prices. It also lists renewable portfolio standards and net energy metering policies.

The same report found that rising demand has tended to hold retail prices down in recent years, that market-based investment in wind and solar has not driven retail price increases, and that only a limited number of states had material increases after adjusting for inflation. It says the future effect of load growth is uncertain.

EIA expected the Pacific, Middle Atlantic and New England regions, which already pay the most per kWh, to see larger increases than the national average. Low-price areas may see smaller ones. The 2025 prices on this site show how wide the gap already is.

Source: U.S. Energy Information Administration, Form EIA-861 (final 2025 data). Price is residential revenue divided by sales. See every state.

A rate increase that shows up on your bill is usually approved by your state commission, or by a city council or a co-op board. The utility asks for more money to cover its costs and a return on its investments, and the regulator decides how much to allow. Read how electric rates are set to see the process and how to take part.

Fuel and purchased power costs can also move bills between rate cases through an adjustment line. See the fuel adjustment charge.

• Use less in the hours and months that cost the most. See what common appliances cost to run.
• Ask your utility whether a time-of-use or other rate plan fits your pattern. See time-of-use rates explained.
• In states with retail choice, compare supplier plans. See how to switch providers.
• Check whether you qualify for bill help, and ask about budget billing.
• Take part in rate cases and public hearings. Regulators weigh public comments.

A nominal price is the price in the dollars of that year. An inflation-adjusted, or real, price removes the general rise in prices, so it shows whether electricity became costly compared with everything else. When a source says prices rose faster than inflation, it means the real price went up. Check which one a claim uses before you compare two numbers.

• EIA, Today in Energy (May 14, 2025): U.S. electricity prices continue steady increase
• EIA, Electricity explained: Factors affecting electricity prices
• Brattle Group, Berkeley Lab report on recent trends in US electricity prices
• U.S. Energy Information Administration, Form EIA-861 (final 2025 data)