The electricity bills of average Americans are set to rise sharply as utility companies have requested a staggering $31 billion in rate increases in 2025, as revealed by a recent study conducted by PowerLines, a non-profit organization advocating for utility customers.
The study revealed that the request for rate hikes is over twice the $15 billion sought in 2024. This surge is primarily due to the extraordinary demand from the data centers of major tech firms, which are expanding their power-intensive AI data centers across the country.
While some requests are still pending approval, many have been approved and will start impacting customer bills this year. Southern states were hit the hardest, with utilities seeking approval for over $14 billion in rate hikes. Florida Power and Light’s $9 billion rate hike request, largely approved, accounted for a significant portion of this.
AI and Data Centers Drive $1.1 Trillion U.S. Power Grid Investment Push
Investor-owned utilities in the US are projected to spend $1.1 trillion on a massive expansion of the power grid between 2025 and 2029, according to the Edison Electric Institute, a powerful industry lobbying group. It cites data centers and AI as key drivers of utility spending.
The increasing power demand of Big Tech is facing growing public backlash. Earlier this month, Microsoft pledged to “pay its own way” for the electricity it uses as it scales its AI data center fleet.
Despite the rising costs, some power grid researchers warn that utilities risk overbuilding new power plants and transmission lines that will ultimately not be needed.
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This article Utilities Push for $31B in Higher Charges—What It Means for Your Electric Bill originally appeared on Benzinga.com
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