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Rising Power Bills Reorder 2025 Elections as Data Centers Boost Demand and More Hikes Loom

Rising power costs have turned energy affordability into a defining electoral test.

Overview

  • EIA forecasts residential electricity prices reaching 17.7 cents per kWh by 2026 after roughly a 36% jump since 2021.
  • U.S. power demand grew about 3% in 2024, driven largely by new data centers in ERCOT and PJM, and EPRI projects data centers could consume up to 9% of U.S. generation by decade’s end.
  • Democrats won governor races in New Jersey and Virginia on affordability pledges and captured two Georgia Public Service Commission seats for the first time in nearly 20 years.
  • Rate pressure is intensifying as utilities sought or secured more than $34 billion in increases through the first three quarters of 2025, and Georgia Power’s typical residential bill now averages about $175 after six hikes in two years.
  • PJM customers face additional increases next June from higher wholesale costs intended to spur new power plants for data-center load, prompting Democratic governors in the region to press the grid operator to contain the impact.