Report: The Electric Deregulation Price Premium

Deregulated electric states cost residential customers 60% more, on average, in 2025 — and the gap is growing

ARLINGTON, Va., Sept. 23, 2026 /PRNewswire/ -- Today, Power for Tomorrow released a report showing that residential utility customers in traditionally regulated states pay lower electric rates than those in states that chose to deregulate their electricity services. For years, proponents of deregulation promised that competition would drive down electricity prices. That hasn't been true from the start — but now, as demand grows, driven by data centers and other large loads coming online and impacting electric rates, the evidence against deregulation is growing. The report analyzes U.S. Energy Information Administration (EIA) data.

"Residential customers living in most states with a traditionally regulated utility model are paying less for electricity than Americans living in deregulated states – and that cost gap is growing," said Brad Viator, President of Power for Tomorrow. He added: "Since Power for Tomorrow was created in 2021, we've been insisting that deregulation means more expensive electricity. We hope that lawmakers, regulators and the American people will start asking why deregulation means higher electric bills and reconsider the value of sensible utility regulation."

Key findings of the report:

• In the contiguous U.S., residential customers in deregulated electricity states paid 60% more on average in 2025 than residential customers in traditionally regulated states — 23.41 cents per kilowatt-hour compared to just 14.60 cents.
• Nine of the ten most expensive states in the contiguous U.S. for residential electricity are deregulated, while every one of the ten cheapest states relies on the traditional regulated utility model.
• From 2024 to 2025, residential prices in deregulated states climbed 7.4%, nearly double the 4.4% increase seen in regulated states — the earliest sign that large load growth is not having a uniform impact across the country.

The full report is available here.

About Power For Tomorrow:

Power for Tomorrow (PFT) is a nonpartisan trade association advocating for the benefits of well-regulated electric utilities that deliver reliable and affordable power to customers. We are the nation's leading resource for research, analysis, and commentary on the advantages of sensible utility regulation.

Learn more by visiting: powerfortomorrow.org 

Gary Meltz- 202-365-7085

SOURCE Power for Tomorrow