Consumers are unlikely to see any relief in gas and electric bills as utilities proposed more than $18 billion in rate hikes across the country over the first half of the year.
The consumer advocacy group PowerLines reported that utilities asked regulators for a record $9.2 billion in cumulative rate increases during the second quarter of this year. Those requested rate increases could affect more than 56 million U.S. customers.
Utilities in Southern states requested the largest increase in rates, totaling $4.5 billion across more than 26 million customers.
Consumers in the Midwest face $2.7 billion in requested rate hikes across 14 million customers, while nearly the same amount of Western customers face $1.5 billion, PowerLines reported.
Most Americans get their electricity from utilities that must seek state consent for rate changes, with appointed or elected state boards approving price structures.
The report, released Tuesday, comes as millions of Americans are already struggling to afford rising electricity bills: One in six American households are behind on utility bills, according to the National Energy Assistance Directors Association.
Public outcry over rising utility prices has pushed state regulators and lawmakers to consider rate freezes, additional energy assistance funds or new rates targeting large energy users such as data centers.
Regulators often approve increases at lower rates than requested by utilities, so state officials will determine what additional costs are passed onto consumers. But PowerLines notes regulators rarely outright reject rate requests. Its analysis of 2025 rate requests, for example, found just two of 83 requests were rejected, though half were still pending at the beginning of this year.
Since 2021, electric and gas utilities have accelerated the speed at which they ask regulators for new price increases, the report said.
PowerLines found that electric company Oncor in Texas requested the largest rate increase of the quarter, with a $1.2 billion request, part of its 5-year investment plan to meet demand from oil and gas companies and data centers.
Dominion Energy in Virginia sought $1.5 billion across three rate requests, including a $1.1 billion request in unrecovered fuel costs. In Michigan, DTE Energy and Consumers Energy have requested about $500 million each in rate increases.
“With more than $18 billion in requests already on the table for 2026, regulators face mounting pressure to scrutinize utility spending plans while balancing the infrastructure investments that a modernizing grid genuinely requires,” the report concluded.
The Edison Electric Institute, which represents the nation’s investor-owned electric utilities, says its members are focused on keeping energy reliable and affordable. Drew Maloney, president and CEO, pushed for permitting reforms at an energy summit last month, saying as much as a quarter of consumer bills are driven by “regulatory bureaucratic red tape.”
But Maloney acknowledged that energy costs are part of broader affordability concerns facing American consumers.
“We understand that energy costs are a component of that,” he said, “and every one of our members has programs that help people that need different relief from their electrical bills.”
Stateline reporter Kevin Hardy can be reached at [email protected].
This story was originally produced by Stateline, which is part of States Newsroom, a nonprofit news network which includes Kentucky Lantern, and is supported by grants and a coalition of donors as a 501c(3) public charity.
