WASHINGTON (April 09, 2026) — A new analysis from Lawrence Berkeley National Laboratory (LBNL) and The Brattle Group finds that average national retail electricity rates have largely tracked inflation in recent years—and that household spending on electricity as a share of total spend sits near an all-time low.
“This analysis underscores the important work America’s electric companies do every day to deliver reliable electricity as affordably as possible,” said Drew Maloney, President and CEO of the Edison Electric Institute. “Americans rely on electricity every moment to power their homes, businesses, and communities. As demand grows, we remain focused on strengthening the grid and keeping costs as low as possible for all Americans.”
The analysis pooled national and state-level data from government agencies, independent system operators, and other public sources.
Key findings include:
- Household electricity costs accounted for just 1.25 percent of total household spending in 2025—near an all-time low.
- After adjusting for inflation, real average retail electricity prices in 2025 were up 3 percent from 2019 but down 6 percent from 2010.
- National averages mask important differences across states, with price trends varying widely—some states have seen declines in retail rates, while others have experienced increases.
- Increasing power capacity prices in PJM is a major factor driving up electric bills in mid-Atlantic states.
- Electricity demand growth has accelerated considerably in recent years. The United States saw a compound annual growth rate of 0.2 percent for electricity between 2010 and 2019; since 2019, that rate has increased to 1.1 percent per year.
The analysis states that growing demand from data centers and businesses can help lower costs for states and communities. “State-level load growth was linked to declining all-sector average retail prices in recent decades, including from 2019 to 2025 in most states,” the study said, noting that higher load spreads fixed costs across more demand, reducing per-unit prices.
The report’s findings align with a recent analysis from Charles River Associates (CRA), which similarly found that electricity rates have remained broadly stable in most states and have generally tracked inflation over time. Similar to the CRA report, the analysis found that—outside the PJM Interconnection region—customers have largely been shielded from cost increases related to data centers.
EEI and its member companies have long advocated for reforms to PJM to improve accountability and transparency.
EEI supported the January announcement from the White House and a bipartisan group of governors from PJM states calling for an emergency auction to ensure technology companies fund new electricity generation needed to meet growing data center demand. EEI also backed the White House's Rate Payer Protection Pledge, which ensures data centers and other large-load customers pay their full share, helping to lower costs for local families and small businesses.
Read the full Lawrence Berkeley National Laboratory report here. Learn more about the Charles River Associates study here and on a recent episode of the Electric Perspectives podcast.
