Overview
- Investor-owned utilities are on pace to invest nearly $208 billion in 2025, with EEI projecting more than $1.1 trillion in capital spending from 2025 to 2029.
- EEI reports capital allocation is pivoting toward generation, which rises to about 30% of 2025 capex ($62.4 billion) while distribution remains the largest category at roughly $66.5 billion.
- A generation pipeline of 91 GW under construction plus 488 GW planned or proposed totals 579 GW, equal to about 46.3% of existing U.S. capacity.
- U.S. electricity output rose about 3% in 2024, and EEI projects average annual growth of roughly 1.7% through 2040 to more than 5.4 million GWh.
- Consumer impacts are drawing scrutiny as EIA data show average residential rates up 6.6% year over year and PJM’s market monitor attributes an $7.3 billion, 82% jump in capacity auction revenues to data-center demand.