Americans are paying more for electricity, and those prices are set to rise even further.

In almost all parts of the country, the amount people pay for electricity on their power bills — the retail price — has risen faster than the rate of inflation since 2022, and that will likely continue through 2026, according to the Energy Information Administration (EIA).

Just about everything costs more these days, but electricity prices are especially concerning because they’re an input for so much of the economy — powering factories, data centers, and a growing fleet of electric vehicles. It’s not just the big industries; we all feel the pinch firsthand when we pay our utility bills. According to PowerLines, a nonprofit working to reduce electricity prices, about 80 million Americans have to sacrifice other basic expenses like food or medicine to afford to keep the lights on. And it’s about to get even worse: Utilities in markets across the country have asked regulators for almost $29 billion in electricity rate increases for consumers for the first half of the year.

Why are prices rising so much all of a sudden? Right now, there are the usual factors driving the rise in electricity rates: high demand, not enough supply, and inflation. But there are problems that have been building up for decades as well, and now the bills are due: Aging and inadequate infrastructure needs replacement, while outdated business models and regulations are slowing the deployment of urgently needed upgrades.

On the campaign trail, President Donald Trump promised to bring energy prices down by increasing fossil fuel extraction. “My goal will be to cut your energy costs in half within 12 months after taking office,” Trump said last August in a speech in Michigan.

But electricity prices are still going up, and Trump’s signature legislative accomplishment, the One Big Beautiful Bill Act, is likely to raise prices further. Without better management and investment, the result will be more expensive and less reliable power for most Americans.

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