Energy Affordability in America: Why Is Electricity So Expensive?

There is not one single factor, but the data clearly shows that two regions are significantly outpacing the rest of the country in price increase: New England and California.

Scroll or tap on the maps, charts and graphs to explore the data.

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Since 2020, New England and California have seen electricity prices increase at a rate three times that of the rest of the United States.

Explore the map below to see where prices are increasing — and where they are not.

Electricity Price Increases

Electricity Price Increases Since 2020

Change in average retail price (¢/kWh) from the 2020 baseline, by state (through December 2025). Want to see how electricity pricing has increased compared to the national average in your state since 2020? Hover over any state (or tap on mobile) to see more.

Hover over a state for details
0.0
11.5 ¢
Price increase from 2020 (¢/kWh)
2020 U.S. Average
$0.13/kWh
2020 2025
Source: EIA Electric Power Monthly, Table 5.6.A

Energy Prices are a Regional Story

Electricity prices have not risen evenly across the country

  • Most states have seen moderate increases.
  • Two regions stand out: New England and California.
  • In several of these states, prices have risen roughly three times faster than much of the country since 2020.

This is not a nationwide uniform spike.  Within New England, the main driver is insufficient natural gas infrastructure.

A gif that reads, "Maine, Rhode Island, Massachusetts, and Connecticut's electricity prices have increased 3x compared to the lower 48, except California. California's electricity prices have increased by 60% over the last 5 years."

Infrastructure Did Not Keep Pace

Over the past decade:

  • Major interstate pipeline projects into New England were cancelled or blocked.
  • Transmission buildout has lagged load growth.
  • Permitting timelines extended into years.

The result:

  • Increased winter price spikes.
  • Greater reliance on emergency measures.
  • Higher average retail prices.

Electricity affordability is fundamentally tied to whether supply can move to where it is needed.

The Inflection Point: 2020

The 2010s were characterized by relatively stable national and regional electricity prices.  Beginning in 2020, New England began to separate from the rest of the country in its electricity costs as demand outpaced accessible supplies.

  • California
  • Maine
  • Massachusetts
  • Rhode Island
  • Connecticut

These states began separating from national trends.

The question is not whether prices increased.
The question is why these regions saw the biggest price spikes.

Hover (or tap on mobile) over the lines to see how much electricity costs have risen in New England and California compared to the national average.

The Inflection Point: 2020

National vs. New England vs. California — Avg. Residential Price (¢/kWh)

The 2010s were characterized by relatively stable national electricity prices. Beginning in 2020, New England and California began to separate sharply from national trends. Hover over the chart (or tap on mobile) to compare prices by year.

National Average
New England
California
Source: EIA Electric Power Monthly, Table 5.6.A

When Supply Is Constrained, Prices Spike

New England has actively opposed new natural gas infrastructure in recent years, resulting in cancelled pipeline projects.  At the same time, natural gas demand has grown in the region and is increasingly relied upon to meet winter peak demands. 

Constrained energy infrastructure and limited fuel access has lead to increased volatility, with more frequent and higher spikes in costs.

Within Appalachia, the source of natural gas for the cancelled infrastructure, prices have remained stable. This is an infrastructure issue, not a resource issue.

Hover (or tap on mobile) over the lines to see how much electricity costs have risen in the Northeast compared to Appalachia.

When Supply Is Constrained, Prices Spike

Regional Gas Price Spikes vs. Appalachian Benchmark

Monthly natural gas prices ($/MMBtu). Algonquin Citygate (New England) experiences dramatic winter price spikes due to pipeline constraints, while Dominion South (Appalachia) — the source of the gas — remains stable. Hover over the chart (or tap on mobile) to compare prices by month.

Algonquin Citygate (New England)
Dominion South (Appalachia)
Source: EIA Natural Gas Monthly, NGI, FERC filings

AI and LNG Exports do not Explain New England’s Cost Increases

Two common scapegoats have emerged:
Growth in AI and data centers
Growth in U.S. LNG exports
The data tells a different story.

LNG

States hosting nearly all U.S. LNG export facilities — including Texas and Louisiana — maintain below-average electricity prices.

If exports were the primary driver, those states would be the most expensive. They are not.

Hover (or tap on mobile) on the dots to see how electricity costs in your state compare to states that export LNG.

LNG Exports & Electricity Costs

States That Export the Most LNG Have Some of the Lowest Electricity Prices

Each dot is a U.S. state. States hosting LNG export terminals — like Texas and Louisiana — maintain prices below the national average. The highest prices are in New England and California, which have no LNG terminals.

No LNG terminals New England & California — highest prices in the U.S.
Major LNG export terminals TX, LA, GA, MD — below-average electricity prices

AI/Data Centers

Electricity demand from data centers is growing. But many of the highest-cost regions saw price acceleration before large-scale AI demand growth.

Demand growth can stress systems. It does not explain persistent regional price divergence.

Hover (or tap on mobile) on the bars to see how electricity costs in your state compare to states that have the largest data center growth.

AI / Data Centers & Electricity Costs

The States Adding the Most Data Centers Are Not the States With the Highest Price Increases

If data center growth were the primary driver of rising electricity costs, these two lists would overlap. They don't.

Virginia added more data center capacity than any other state (+2,300 MW) yet saw only a 2.3¢/kWh price increase. Rhode Island added just 13 MW but saw an 8.7¢ increase. Data center growth does not explain regional price divergence.
Source: EIA Electric Power Monthly · Industry DC Capacity Reports (Cushman & Wakefield, JLL, CBRE)

If the Problem Is Infrastructure, the Solution Is Reform

Energy markets respond to fundamentals: when supply expands, prices stabilize. When supply is constrained, volatility increases. Comprehensive permit reform would:

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Accelerate critical infrastructure

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Improve regional fuel access

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Reduce seasonal price spikes

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Strengthen reliability

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Improve affordability

America Has the Resources. Now is the Time to Build

The United States remains one of the most affordable electricity systems in the developed world. That advantage is not guaranteed.

  • Price spikes are concentrated to two regions: New England and California.
  • Infrastructure constraints are measurable.
  • Affordability depends on buildout.

Explore the data.
See the divergence.
Support practical permitting reform.

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Data visualization created using Lovable.