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NEWSCUM IS FEARMONGERING FOR VOTES IN 2026-28! Electricity costs in the U.S. have risen by approximately 10% in 2025 due to a combination of factors, based on available data: 1. Increased Demand from AI and Data Centers: The rapid expansion of power-hungry data centers, driven by the artificial intelligence boom, has significantly increased electricity demand. These facilities can consume 30 times more power than traditional data centers, with projections estimating they’ll require 30 GW of new capacity by 2030—equivalent to 30 nuclear reactors. This surge in demand strains the grid, driving up wholesale power prices, which are passed on to consumers. For example, one study noted that AI data centers were responsible for 63% of price hikes for customers of PJM, the nation’s largest electric grid. 2. Aging Grid Infrastructure: The U.S. electrical grid, rated a D+ by the American Society of Civil Engineers, is outdated, with over 70% of transmission lines and transformers over 30 years old. Upgrading and maintaining this infrastructure, including replacing aging transformers and hardening systems against extreme weather, is costly. These expenses, such as PG&E’s $20 billion plan to bury power lines, are often passed to consumers through higher delivery charges, which now account for up to 69% of some residential bills. 3. Policy Changes and Repeal of Clean Energy Incentives: The One Big Beautiful Bill Act, signed into law on July 4, 2025, phased out tax credits for solar and wind energy, increasing reliance on more expensive fossil fuels. This policy shift is projected to raise wholesale electricity prices by 74% over the next decade, with household costs increasing by an estimated $170 annually by 2035. The reduction in clean energy deployment has also led to the cancellation or delay of projects that could have provided cheaper power. 4. Rising Fuel Costs and LNG Exports: Natural gas, which powers about 40% of U.S. electricity, has seen price increases due to a nearly sevenfold rise in U.S. LNG exports over the past seven years. Global demand from Asia and Europe competes with domestic needs, pushing up fuel costs. For instance, natural gas spot prices rose by about $1.00 per million Btu compared to last year, directly impacting electricity prices. 5. Extreme Weather and Heat Waves: Record-breaking heat in July 2025, including a national peak demand record of 758,149 MWh in a single hour, increased electricity consumption for air conditioning. Utilities often purchase expensive spot-market electricity to meet this demand, and these costs are socialized across customer bills. Weather-related outages, responsible for 80% of major U.S. power outages from 2000 to 2023, further strain the grid and increase costs. 6. Tariffs and Supply Chain Issues: New tariffs on steel, aluminum, and energy imports from Canada and Mexico have raised the cost of building and maintaining power infrastructure, such as transmission lines and substations. Additionally, supply chain disruptions and labor shortages have driven up costs for grid components, with power transformer prices up 75% since 2019 and cable costs nearly doubling. These expenses are ultimately reflected in higher consumer rates. While some regions, like those with abundant nuclear or hydroelectric power (e.g., Phoenix or Idaho), have seen more stable prices, the national trend reflects these structural and policy-driven pressures. Experts suggest that expanding clean energy could mitigate future increases, but current trends indicate costs may continue to rise without significant intervention.