Electricity costs are going up in the U.S. \u2014 and the Trump administration\u2019s attempts to choke off clean energy development are only going to make matters worse.<\/p>\n
The average price of electricity for residential consumers is set to hit 17 cents per kilowatt-hour this year and could climb to 18 cents per kilowatt-hour in 2026, per a\u00a0new report<\/a> from the U.S. Energy Information Administration.<\/p>\n Electricity prices are rising<\/a> at more than twice the rate of inflation. Just five years ago, in 2020, average U.S. power prices were only 13.15 cents per kilowatt-hour \u2014 23% lower than they are\u00a0today.<\/p>\n The difference may seem small, but even one additional cent would tack on roughly $108 to the average U.S. home\u2019s expenses each year. It\u2019s taking a\u00a0toll on people\u2019s wallets: A\u00a0survey conducted this spring found that three in four Americans said they\u2019re worried about rising utility bills<\/a>.<\/p>\n Numerous reports and studies reveal that the core drivers of rising prices include an aging distribution grid<\/a> that requires expensive repairs, and damage to the system from the wildfires and storms exacerbated by climate change. Then there\u2019s the volatile price of natural gas, which produces about 40% of U.S. electricity<\/a>. Skyrocketing demand for power<\/a> is also increasingly a\u00a0factor, as people electrify their homes, businesses, and cars, and in particular as data-center developers<\/a> snap up as much energy as they can to support their AI ambitions.\u00a0<\/p>\n In January, President Donald Trump took office promising a\u00a0great many things \u2014 including to make energy more affordable. But since then, household electric bills have risen<\/a> another 10%, and the policies he\u2019s enacted are set to exacerbate the problems at\u00a0hand.<\/p>\n