The average retail residential price for electricity rose from 16.41 to 17.47 cents per kilowatt-hour from May 2024 to May 2025. Certain states experienced higher increases, such as Maine at 36.3% and Connecticut at 18.4%. Only five states, including Nevada and Hawai'i, saw decreases. Factors influencing these prices include supply and demand, infrastructure costs, and the impact of energy-intensive data centers that create additional demands on energy resources.
The nationwide average retail residential price for 1 kilowatt-hour of electricity rose from 16.41 cents to 17.47 cents between May 2024 and May 2025, a gain of about 6.5%.
Electricity prices vary regionally and have many influences, from basic supply and demand to fuel rates and infrastructure costs.
Anywhere you're seeing a massive takeoff in load growth, the most likely cause is data centers, and that is almost certainly going to have an impact on electric rates.
A new IEEFA analysis highlights a dramatic spike in capacity market prices set at auction by PJM largely tied to data centers, like those in Northern Virginia's 'data center alley.'
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