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Rising Power Bills Reorder 2025 Elections as Data Centers Drive Demand and More Increases Loom

Voter backlash over higher electricity costs delivered Democratic gains in New Jersey, Virginia, and Georgia.

Overview

  • Gas and electric utilities sought or secured more than $34 billion in rate increases in the first three quarters of 2025, with about 80 million Americans struggling to pay utility bills.
  • Democrats won the governorships in New Jersey and Virginia and flipped two seats on Georgia’s Public Service Commission after repeated rate hikes, with Georgia Power’s typical monthly bill now around $175.
  • The EIA projects residential electricity prices will climb to roughly 17.7 cents per kWh by 2026 after rising about 36% since 2021.
  • Rapid expansion of power-hungry data centers is lifting demand and costs, with EPRI estimating they could use up to 9% of U.S. generation by decade’s end and PJM customers facing billions in higher wholesale costs next June.
  • Rising natural gas prices and growing LNG exports are adding to generation costs, while proposals like Georgia Power’s $15 billion buildout to serve data centers have prompted debate over who bears the expense.