Electricity Prices Are Climbing More Than Twice as Fast as Inflation

Electricity prices have increased at more than double the inflation rate over the past year. Florida Power & Light customers face monthly bills exceeding $400 during summer months, prompting the utility to seek a 13% rate increase over four years that drew tens of thousands of petition signatures in opposition.

The Energy Department projects data centers will consume more electricity than residential customers for the first time in 2026. Natural gas costs for power generation rose 40% in the first half of 2025 compared to 2024, and the department expects another 17% increase next year. Natural gas generates more than 40% of U.S. electricity. One in six households currently struggles to pay electric bills. The federal government provides $4 billion annually in energy assistance for low-income families.

Further reading: Big Tech’s AI Data Centers Are Driving Up Electricity Bills for Everyone.