Laissez-fair? Deregulation advocates argue that competitive markets will drive down power bills. But…that doesn’t appear to be the case, according to a recent report by trade association Power for Tomorrow. (FYI: The org advocates for utility regulation).
The data: The common factor among nine out of the ten contiguous US states with the highest residential rates? They’re deregulated. Meanwhile, the ten states with the lowest energy bills are all regulated.
A growing cost gap: From 2024-2025, residential energy prices in deregulated states grew by 7.4%—nearly double the increase over that period for regulated states. It’s a sign that “large load growth is not having a uniform impact across the country,” the report said. 🤔
The reason: In deregulated states, bills are more vulnerable to market volatility and scarcity pricing. Add rising data center demand to the mix, and things are likely to get even hairier.
Mon, Sep 28
Molly Glick
Energy Central Team
NEWS: Last year, residential customers in deregulated states paid an average 60% more for electricity.
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