One big reason rates are rising? The grid itself is getting pricier to maintain. Distribution now makes up nearly half of utility spending, up from 37% in 2019. (Heatmap)
Since 2019, utilities have invested $6B into poles and $4B into underground lines, and transformer prices are up nearly 100%. Data centers are also amplifying demand shocks, with PJM alone seeing $9.4B in added capacity costs last year.
Costly emergency rebuilds and system upgrades are stacking up, too. The US has already seen 11 hurricanes make landfall this decade, versus 13 in all of the 2010s.