WASHINGTON (February 02, 2026) — An independent analysis conducted by Charles River Associates (CRA) found that average retail electricity rates have largely tracked inflation during the past five years. The study concluded that electricity rates have remained broadly stable in the majority of states, with upward shifts in customer costs confined to specific regions and driven by local factors rather than the result of a nationwide trend.
“This analysis underscores the important work America’s electric companies do every day to deliver reliable electricity and keep customer bills as low as possible,” said Drew Maloney, President and CEO of the Edison Electric Institute (EEI). “While CRA’s report makes clear that our industry is making good progress for most of the country, we also understand we have more work to do as we serve American families and local businesses. The report also highlights just how important responsible partnerships are to ensuring that data centers pay their fair share and deliver tangible benefits to communities across the nation.”
Among the report’s key findings:
- Over the last five years, 34 states—68% of states—experienced below-average electricity rate increases.
- In general, higher rate increases can be attributed to external drivers and operating expenses—such as wholesale price increases, wildfire spending, and net metering programs.
- Data centers are not driving up rates, with the exception of some areas served by the PJM Interconnection. New data center tariffs and agreements are expected to insulate existing customers from the costs of serving data centers.
“The national average rate doesn’t really reflect reality for most customers,” said Matt DeCourcey, Vice President of CRA's Energy Practice, while discussing the new study on EEI's Electric Perspectives podcast. “There were rate increases in a small handful of states due to regional dynamics. In fact, 34 states had changes in their rates that were less than the national average.”
The report also found that—outside of the PJM Interconnection region—customers have largely been protected from cost increases related to data centers. EEI and its member companies have long called for reform to PJM that would improve accountability and transparency. EEI supported the January announcement from President Donald Trump and a bipartisan group of governors from states served by PJM calling for an emergency auction to require technology companies to fund new electricity generation needed to serve growing data center demand.
America’s investor-owned electric companies have been working with hyperscalers, regulators, and state and local officials to implement special tariffs that protect residential customers while ensuring large customers pay their fair share to access the grid. To date, 16 states have approved large load tariffs, with decisions pending in another 10 states.
Read the full study here.
