Millions of Americans are upset and deeply concerned about their electric bills as of late, and rightly so. For many, it was a critical issue on Election Day this year, forcing candidates to clearly outline their energy platforms.
Retail electricity prices have increased faster than the rate of inflation since 2022; that is expected to continue through 2026.
However, it applies only to certain states, many of which lie in New England, the Mid-Atlantic, and the West Coast. Residents in these regions are suffering at the hands of bad policy decisions.
New research from Lawrence Berkeley National Laboratory finds that one of the biggest culprits for these recent trends is the Renewable Portfolio Standard (RPS): state-level policies that mandate a minimum share of electricity sold by utilities come from renewable sources. An RPS “will often raise retail prices, especially in states with more costly renewable energy supplies.” When RPS targets exceed what the market would otherwise supply, utilities must purchase more expensive renewable energy or buy Renewable Energy Credits to comply.
Kristen Walker is an energy policy analyst for the American Consumer Institute, a nonprofit education and research organization. For more information about the Institute, visit www.theamericanconsumer.org or follow us on X @ConsumerPal.