Feb 23, 2026
Electric and gas utility companies across the country requested a record $31 billion in rate increases for over 80 million customers in 2025, according to a report by consumer advocate PowerLines (1). That’s more than double the previous year’s requests totaling $15 billion.
As of early February, regulators had approved $11.6 billion in rate hikes impacting 56 million Americans, the organization’s analysts told CBS News (2). Dozens of decisions remain pending.
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“We’re calling this the new politics of electricity, where electricity is the new eggs,” Charles Hua, executive director of PowerLines, said during a media briefing, per the broadcaster.
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Hua, of course, was referring to the rising price of eggs in recent years becoming a hot topic for consumers frustrated with high living costs.
So, why are rate requests going up, who’s being impacted most and what can households do to reduce the damage?
Feeling the impact of rate hikes
Many utilities aren’t simply able to raise rates on their own. State regulators sign off on increases, and added costs are typically passed on to customers.
Appearing on CBS Los Angeles, Hua explained utilities will ask for more money to pay for things like costly maintenance on aging infrastructure and repairs following extreme weather events (3). Fuel prices and surging demand for electricity can also be a factor.
While rate hikes are happening across the country, southern states are getting hit hardest. Regulators so far have approved $8.4 billion in increases affecting 13.9 million customers in the South, CBS News reports, citing data from Powerlines. In total, $14.3 billion in requests were made covering 32.9 million people in the region last year.
Price increases like these are coming at a time when Americans are struggling to afford basic living costs. Roughly one-third of Americans reported cutting back on or skipping a necessary expense at least once to pay their utility bill, according to a 2024 LendingTree survey (4). According to Bureau of Labor Statistics data, the average annual electricity bill that same year was $1,833.
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What you can do right now
For everyday consumers concerned about the rate hikes, here are some strategies you can use to help offset the squeeze.
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Look for energy assistance: Federal programs like the Low Income Home Energy Assistance Program (LIHEAP) provide financial support for low-income households to help pay heating and cooling costs. Each state has its own eligibility requirements.
Switch to budget billing: Some utilities offer budget or balanced billing plans that average your costs over a year, so you don’t get crushed by seasonal spikes. This doesn’t lower overall usage or cost, but it can make monthly payments more predictable for your household budget and easier to manage.
Cut usage where you can: Small, low cost changes around your home can make a difference. Typically, these include replacing old bulbs with low-energy ones, installing a programmable thermostat to reduce heating and cooling while you’re asleep or away, sealing air leaks and adding insulation.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
PowerLines (1); CBS News (2); CBS News Los Angeles (3); LendingTree (4)
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Freelance writer with an economic development and consulting background.
