US electricity prices continue to climb under Trump



Electricity prices across the United States have continued their steep climb since Donald Trump returned to the presidency in January 2025, with average residential rates rising faster than the pace of inflation and reaching their highest point in over a decade.

Between January and June 2025, electricity prices in the US have risen approximately 6%, according to official data from the US Bureau of Labor Statistics.

The national average price per kilowatt-hour increased from 17.9¢ in January to 19.0¢ in June, marking a confirmed 6.15% increase over the six-month period.

Separately, the independent Energy Information Administration and related market aggregators — which compile national utility filings –report slightly different averages but confirm a similar rate of acceleration.

Electricity prices across the United States have continued their steep climb since President Donald Trump took office in January 2025. Getty Images for Hill & Valley Forum

Their data places the average residential price at 15.95¢/kWh in January, climbing to 16.44¢ in February, 17.11¢ in March and reaching 17.45¢ by July 2025.

Despite these differences in baseline figures, analysts agree that both datasets point to a 13% increase in electricity prices nationally from 2022 to mid-2025.

The sharpest growth has occurred since Trump’s return to the White House, with the early months of 2025 showing some of the fastest monthly gains in recent years.

Electricity prices have surged in 2025 due to rising demand from data centers needed to power artificial intelligence technology as well as the strain on the energy grid caused by the rising popularity of electric vehicles.

Utilities have responded to rising fuel and infrastructure costs by filing for substantial rate hikes. REUTERS

Other factors pushing up the price of electricity include population growth as well as volatile natural gas prices and global energy disruptions.

Utilities are also passing on the costs of major grid upgrades, equipment shortages, and inflation while Trump administration policies rolling back clean energy tax credits have made renewable projects more expensive and slowed their expansion.

These combined factors are driving sharp rate increases nationwide, with especially steep hikes in already high-cost regions like California and the Northeast.

In July, Trump signed the so-called “Big Beautiful Bill,” a sweeping energy package that expanded oil and gas leasing, limited federal clean energy subsidies and eliminated tax credits for wind and solar energy.

As a result, the average household electricity bill has increased by approximately $219 since 2022, reaching nearly $1,900 per year in 2025.

Some analysts project that the policies in the “Big Beautiful Bill” will raise household electricity bills by $600/year over the next decade for the average US family.

Data centers that power artificial intelligence technology require massive amounts of energy. REUTERS

The National Energy Assistance Directors Association (NEADA) has warned that the 2025 summer season will bring the highest average electricity bills in at least 12 years, further straining American consumers.

Utilities have also moved to raise rates.

In the first quarter of 2025 alone, utilities filed for nearly $20 billion in rate increases nationwide, citing factors such as fuel price fluctuations, aging infrastructure, and broader market uncertainty.

These increases are now being passed along to consumers.

Rates vary widely across states, with recent July 2025 data showing prices ranging from 11.59¢ to over 43¢/kWh, with the highest prices in California and the Northeast. In several states, including those in the Pacific, Northeast and Mid-Atlantic regions, prices have already exceeded 21¢/kWh.

The Post has sought comment from the White House.



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