US Electricity Prices Outpace Inflation in 2025 as Research Flags Regional Gaps

1 articles · Updated · Kleinman Center for Energy Policy · Jun 9

2025 marked a national break from the long-running pattern of U.S. electricity prices broadly tracking inflation, raising the prospect of a new period of faster utility-bill growth.
Research discussed by Brattle Group principal Ryan Hledik, conducted with Lawrence Berkeley National Laboratory, found the national trend still masks sharp regional differences in how power costs move.
Hledik said the main drivers of electricity prices include natural gas costs, infrastructure investment and the expense of serving rising power demand, rather than a simple nationwide effect from renewable energy.
The findings land as electricity bills become a bigger U.S. political issue, with policymakers weighing how to meet growing demand without pushing household and business costs materially higher.