Electricity Rates Spike Across U.S. States Amid Soaring Gas Prices

Report shows electricity costs rose significantly in 2025, compounding financial strain on households

Mar. 17, 2026 at 3:22pm

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A new congressional report reveals that electricity rates 'increased significantly' in nearly every U.S. state in 2025, with residents in a dozen states seeing at least a 10% jump. This comes amid other economic challenges, including steep increases in gasoline prices since the start of the U.S.-Israeli war in Iran. The analysis shows American households paid roughly $110, or 6.4%, more for electricity in 2025 compared to 2024.

Why it matters

The rise in electricity and gas prices is putting significant financial strain on American households, with affordability emerging as a key issue ahead of the 2026 midterm elections. The report highlights the impact of global events and policy decisions on the daily lives of consumers, raising questions about the government's ability to fulfill campaign promises on energy costs.

The details

The report from the Joint Economic Committee shows electricity rates increased the most in the District of Columbia (23.5%), New Jersey (16.9%), Indiana (16.3%), and Illinois (15.9%). Other states with double-digit increases include Pennsylvania, Kentucky, Maryland, Tennessee, New York, Ohio, Missouri, Maine, and Washington. Meanwhile, rates dropped in Nevada, California, Hawaii, and Arizona. The analysis cites the growing demand for electricity from AI data centers as one factor contributing to the price hikes.

  • The report was released by Democrats on the Joint Economic Committee on March 17, 2026.
  • The electricity rate increases occurred in 2025 compared to 2024.

The players

Joint Economic Committee

A congressional committee that released the state-by-state report on electricity rate increases.

President Donald Trump

The former U.S. president who had promised to slash electricity costs during his campaign, a pledge that the report suggests he failed to fulfill.

Sen. Maggie Hassan

The ranking member of the Joint Economic Committee, who criticized the president for the rising energy costs impacting American families.

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What they’re saying

“American families don't need a report to tell them that the President has broken his campaign promise to slash energy costs; they already feel the impact of President Trump's actions every single day. But this report is yet another indication that sky-high costs are continuing to rise — and are continuing to hurt American families.”

— Sen. Maggie Hassan, Ranking Member, Joint Economic Committee (Nebraska Examiner)

“It's a big deal; it's going to have a tremendous impact on electricity costs... Under this new agreement, Big Tech companies are committing to fully cover the cost of increased electricity production required for AI data centers — and that would mean prices for American communities will not go up, but in many cases, will actually come down.”

— President Donald Trump (Nebraska Examiner)

What’s next

The report's findings are expected to be a key issue in the 2026 midterm elections, as voters weigh the impact of rising energy costs on their household budgets.

The takeaway

The spike in electricity and gas prices is compounding the financial strain on American families, underscoring the need for policymakers to address the affordability crisis and fulfill campaign promises to reduce energy costs. The report highlights the complex interplay between global events, technology trends, and domestic policy decisions in shaping the daily lives of consumers.