US Electricity Bills Up 6.7% in One Year, 38% Over Five Years
Emerging as a Key Issue Ahead of November Midterms
Trump on Edge as Election Approaches
In the United States, where the midterm elections are approaching in November, the sharp rise in electricity bills has emerged as a key political issue. As electricity bills, which directly impact household expenses, stir public sentiment, President Donald Trump and the White House are closely monitoring the situation.
WSJ: "Electricity Bills Are a Barometer of Public Sentiment"
On the 17th (local time), The Wall Street Journal (WSJ) reported that electricity bills, a symbol of household financial burden, are becoming a central issue in the midterm elections. According to statistics from the U.S. Department of Labor, in December of last year, electricity bills in the United States rose by 6.7% compared to the same month the previous year. During the same period, the consumer price index increased by 2.7%. In addition, since 2020, the cumulative increase in electricity bills has reached 38%.
The surge in electricity bills has become a "hot potato" across the political spectrum. Politicians from both parties are either blocking power companies’ plans to raise rates or openly criticizing them. Mike Braun, the Republican governor of Indiana, instructed the state’s consumer protection agency in September of last year to review the profit structure of power companies, stating, "We can no longer afford higher electricity bills." Janet Mills, the Democratic governor of Maine, also criticized the local power company’s proposal to raise electricity rates as "out of touch with reality."
Trump on Alert Ahead of Midterms...Discussions on Power Grid Stability and Containing Electricity Bills
The Trump administration has also expressed a sense of crisis. Recently, the White House held a meeting attended by the governors of Pennsylvania, Ohio, and Virginia to discuss stabilizing the power grid and containing electricity bills. The Trump administration maintains that large technology companies with high electricity demand should supply their own power when building data centers or bear the cost of constructing new power plants. The aim is to prevent the increase in electricity bills for ordinary households caused by soaring electricity demand from large tech companies.
However, it is uncertain whether such solutions can curb the rise in electricity bills before the midterm elections in November. This is because the electricity demand from large tech companies is not the only cause of rising electricity bills. Experts believe that many of the factors driving up electricity bills have been accumulating for years. Power companies have failed to invest sufficient capital in facility maintenance, repairs, and the construction of new power plants over several years, resulting in an inability to meet demand.
Additionally, some point out that even with political pressure, it is structurally difficult to bring down electricity bills in the short term. A combination of factors-including the cost of replacing aging infrastructure, disaster recovery expenses, and fluctuations in fuel prices-continues to push rates higher. Unlike gasoline prices, many elements affecting electricity bills are beyond the administration’s control. Ed Hirs, a professor at the University of Houston, remarked, "It is a political rule that when gasoline prices or electricity bills rise, incumbents are at a disadvantage for re-election," predicting that rising electricity bills will become a variable in the midterm elections.
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