Power bills and data centers cast rare spotlight on utilities in US midterms
XLU•US residential electricity prices have risen more than 10% since 2024, with increases above 20% in Ohio, as candidates pledge to control utility rates and debate data center power costs. Utilities are on track to match last year’s record $31 billion in rate-increase requests, while investor-owned companies plan nearly $1.3 trillion in capital spending over five years.
1. Rising bills enter campaigns
Electricity prices have become a prominent issue in this year’s US midterms as voters face rising bills and debate the cost of power-hungry data centers. Residential electricity prices nationwide have increased more than 10% since 2024, outpacing increases in other goods and services; bills in Ohio have grown by more than 20% over the last two years.
2. Candidates target utility rates
Candidates in several states have proposed limiting utility rate increases or changing guaranteed returns. Ohio gubernatorial candidate Amy Acton has pledged to lower energy bills, appoint a public utilities commission not beholden to utility companies and pursue a data center moratorium. Her opponent, Vivek Ramaswamy, said residents living near data centers would not pay electricity bills.
3. Investment and regulatory pressure
Utilities are on track to match last year’s record $31 billion in rate-increase requests to regulators, while investor-owned companies are expected to spend nearly $1.3 trillion over the next five years. Pennsylvania Governor Josh Shapiro said PECO Energy Company’s withdrawal of a rate-increase proposal would reduce future bills by as much as $34 a month. Fitch downgraded the North American utility sector to “deteriorating” from “neutral” in June, citing political pressure to limit electricity bills and utility profits.
