Executive Summary
The cost of delivering power in the U.S. has increased and shows no signs of reversing.
Since 2020, residential electricity prices in the U.S. have increased 32%, adding approximately $35 to the average monthly bill. For low- and middle-income families, electricity now accounts for 6%–10% of household income.
Consumption hasn’t changed. Costs have.
So, what’s driving up electricity prices?
There isn’t a single cause behind the rise. Instead, several pressures have converged.
Utilities operate within a largely fixed-cost environment. Most cost drivers are either market-determined or contractually committed. Leadership has limited ability to influence them.
But one driver is different. And it is the one that utility leadership can directly control.
This paper presents a structured analysis of the three forces driving up electricity prices and the single controllable cost driver that utility executives can act on today.
What’s Inside
- Principal drivers of electricity price inflation
- Three forward procurement levers to cut ratepayer costs
- Aligning strategies with regulatory requirements
For leaders navigating cost pressure, this decision protects ratepayers as well as gives utilities a defensible case with regulators.
Read the paper.
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