Soaring electricity rates fueled Democratic victories — now comes the hard part

While voters have a lot to worry about right now, rising utility bills have become a hot button issue. Democratic gains in New Jersey, Virginia and Georgia in elections this week could be seen as something of a referendum on the state of energy policy and infrastructure in the U.S. as utilities struggle to keep up. growing demand for electricity from artificial intelligence data centers, electric vehicles and domestic manufacturing.

These problems won't go away, and Democrats now face a difficult road ahead to address these issues and deliver on their campaign promises to lower energy prices.

“Consumers have sent a clear message: They are paying attention and will hold government officials accountable for decisions that affect their utility bills,” Charles Hua, executive director of the nonprofit consumer advocacy group PowerLines, said in a press release on Election Day.

“Now we have a ghost”

Every third family in the US They had to give up basic necessities like food or medicine to be able to pay their energy bills in 2024, according to a US Census survey. In 2015one in five families said the same in a similar federal survey. This is a problem called energy security Politically speaking, this has been an ongoing problem in the US for many years. But electricity prices are risingaffecting more people.

New Jersey saw one of the biggest jumps, with retail rates jumping 20 percent this summer. Heat map reports. Gov.-elect Mikie Sherrill said on the campaign trail that she would quickly declare a state of emergency and freeze rate increases.

Future Governor of Virginia Abigail Spanberger campaigned on promises to increase electricity generation with lots of nuclear power, offshore wind and solar power. She also emphasized the need to create data centers.”[pay] their fair share” Average residential energy costs in Virginia grew 3 percent between May 2024 and 2025, lower than the national average of about 6.5 percent.. However, concerns about the future of the power grid remain. intensified with the boom of artificial intelligence; Virginia has more energy-hungry data centers than anywhere else in the world.

“We now have the bogeyman of data centers, which are large consumers of energy, coming in and, in many states, getting great deals on wholesale electricity prices when regular consumers don't have that influence,” says Tony Reams, an environmental justice professor at the University of Michigan and director of the Urban Energy Justice Lab (he was also previously appointed to senior positions at the U.S. Department of Energy during the Joe Biden administration).

Cheryl and Spanberger, who were once roommates while members of Congress in Washington, D.C., both clashed Republican Party opponents who blamed rising costs on environmental regulations that discourage fossil fuel production. Voters were not entirely convinced. Solar energy and wind steel cheapest sources of new electricity generationmaking up most of the new capacity planned to go online in the USA.

However, elected Democratic governors face major obstacles and great uncertainty when it comes to their energy goals. Experts do not quite understand how Sherrill could freeze electricity tariffs, which are usually kit separate regulatory authorities and wholesale auctions. The move could also face legal challenges. Hua says Barrons.

Renewable energy projects, and offshore wind in particular, are underway. Crosshairs of President Donald Trump. The Trump administration suddenly released stop working orders offshore wind projects, and members of the Republican Party of Congress voted to repeal key tax incentives for solar and wind energy.

Building new infrastructure takes a long time, especially when it comes to nuclear power. There is bipartisan support for nuclear power, especially as a way generate electricity 24/7 for data centers. New generation nuclear reactors are still in the design or demonstration stages, and likely have several more years of licensing and permitting ahead before they begin commercial-scale projects. The Trump administration is trying accelerate this schedule through a deregulatory programwhich already causes some safety concerns.

Costs and construction delays are also negatively impacting conventional nuclear power projects, especially in Georgia. The state is home to the first new reactors built in the United States in more than three decades. After construction began in 2009, Vogtle power units 3 and 4 were put into operation. 2023 And 2024 after being about $20 billion over budget.

“America's New Electricity Policy”

Consumers paid for the additional costs with higher utility bills. Reuters reports. They responded this week by voting for two new Democratic utility commissioners. The state Public Utility Commission sets electricity rates and oversees utilities and was previously composed entirely of Republicans.

“The election of two new Civil Service Commissioners represents a seismic change in Georgia's energy landscape and reflects a new energy policy in America,” Hua said.

To make a real impact on Americans' utility bills, lawmakers will have to address a number of underlying issues. There would probably be an entire class dedicated to this issue, but Heat map has a good explanatory articletoo much. Demand for electricity suddenly increased after more than ten years of approximately levelingthanks in no small part to data centers and artificial intelligence. Methane prices rose after Russia invaded Ukraine and Europe began importing more gas from the United States. Electric grids have also incurred additional costs due to worsening weather and climate emergencies in the United States. And in any case, America's aging infrastructure has long been in need of an upgrade, as utilities spent a lot of money replacing or building new power lines and related infrastructure.

Infrastructure upgrades often result in across-the-board charges for consumers, regardless of energy consumption or income level. Reams says reforming the way rates are set could be one way to make utility bills more affordable for households facing the difficult decision to heat or eat. For example, apartment buildings may have income-driven payment plans or special rates. Then require the participation of data centers or other large commercial energy users, perhaps by creating funds through legally binding measures. social benefit agreements that human rights groups are already using limit the impact of data centers on surrounding communities. These types of agreements may also include provisions to support the growth of renewable energy sources, including sharing. community solar projects this can help reduce your house bills.

“The emphasis on energy affordability that came with the last election should give us the opportunity to have a more innovative conversation about how we support households suffering from energy poverty,” says Reams.

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