Energy Affordability in America: Why Is Electricity So Expensive?

The answer isn’t the same everywhere. The data shows two regions driving most of America’s price increases.
Since 2020, electricity prices in two parts of the country — New England and California — have risen dramatically faster than the rest of the United States.
Explore the map below to see where prices are increasing — and where they are not.

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. It is a regionally concentrated increase and there is one main driver-lack of infrastructure.

The Inflection Point: 2020

The 2010s were characterized by relatively stable national electricity prices.

Beginning in 2020, a sharp divergence emerged:

  • 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.

AI and LNG Exports are not driving cost increased
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.

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.

When Supply Is Constrained, Prices Spike

New England and California share structural characteristics:

  • Constrained energy infrastructure
  • Limited fuel access during peak demand
  • Lengthy permitting timelines
  • Cancelled or delayed pipeline and transmission projects

At the same time:

  • Natural gas remains ~40% of U.S. power generation.
  • It is the only large-scale dispatchable fuel that can ramp during winter peaks.

When demand rises and infrastructure cannot expand, volatility increases.

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.

CCUS is a Safe Process

A graphic that reads, "Globally, nearly 400 million tons of CO2 have been safely stored using CCUS".
A graphic that reads, "Over 900 large-scale CCUS projects are under development, operating, or under construction."
Safety is foundational. The U.S. has a century of underground storage experience, and each CCUS site undergoes rigorous permitting and oversight by the EPA or authorized state agencies. Permitting, operation, testing and long-term monitoring adhere to strict standards, and wells are continuously monitored twenty-four hours a day, seven days a week, three-hundred-sixty-five days a year.

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:

Accelerate critical infrastructure

Improve regional fuel access

Reduce seasonal price spikes

Strengthen reliability

Improve affordability

This is not about one fuel. It is about building infrastructure at the speed demand requires.

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.
Reform Permitting Now →
EQT Workers looking at a clipboard and working on site
Data visualization created using Lovable.