US Electricity Rates: Stable Prices & Data Center Impact – February 2026 Analysis

A new analysis released Monday by Charles River Associates (CRA) indicates that average retail electricity rates across the United States have remained relatively stable over the past five years, largely keeping pace with inflation. While some regions have experienced increases, these are attributed to specific local factors rather than a widespread national trend.

Stable Rates for Most Americans

The Edison Electric Institute (EEI) commissioned the study, and its president and CEO, Drew Maloney, stated that the analysis “underscores the important work America’s electric companies do every day to deliver reliable electricity and keep customer bills as low as possible.” The report suggests that prevailing narratives of rapidly rising electricity rates nationwide are often inaccurate or incomplete.

Did You Know? Over the last five years, 34 states – approximately 68 percent of the country – experienced electricity rate increases below the national average.

Regional Variations and Contributing Factors

According to the CRA report, increases in electricity costs have been “confined to specific regions and driven by local factors.” These factors include wholesale power price increases, spending related to wildfires, and net metering programmes. Matt DeCourcey, vice president of CRA’s Energy Practice, explained on EEI’s Electric Perspectives podcast that “the national average rate doesn’t really reflect reality for most customers.”

Data centres and Cost Allocation

The analysis also examined the impact of data centres on electricity rates. CRA found that, outside of the PJM Interconnection region, customers have generally not experienced cost increases related to data center growth. New tariffs and agreements are being implemented to ensure data centres contribute to the costs of the electricity they consume.

Expert Insight: Properly allocating costs to large new customers, like data centres, could ultimately benefit existing customers by absorbing some of the shared costs of maintaining the electricity grid.

EEI and its member companies are advocating for reforms within the PJM Interconnection to improve accountability and transparency. A bipartisan group of governors and President Donald Trump announced in January a plan for an emergency auction to require technology companies to fund new electricity generation to meet the growing demand from data centres.

Looking Ahead

Investor-owned electric companies are collaborating with hyperscalers, regulators, and local officials to implement tariffs that protect residential customers while ensuring large customers pay their fair share. Sixteen states have already approved such tariffs, with decisions pending in another ten. Further investments in the Northeast, aimed at lowering regional prices or reducing demand, could also contribute to lower rates. Similarly, financial strategies in California focused on reducing wildfire prevention costs could benefit customers.

Frequently Asked Questions

What did the CRA study find regarding national electricity rate trends?

The study found that prevailing narratives of rapidly rising electricity rates are inaccurate, and that rates have remained broadly stable in the majority of states.

What factors contributed to higher electricity rates in some regions?

Higher rate increases in some areas were attributed to external drivers and operating expenses, including wholesale power price increases, wildfire spending, and net metering programmes.

What role do data centres play in electricity rate increases?

The analysis concluded that data centres are not driving electricity rate increases in most parts of the country, and new tariffs are being implemented to ensure they pay their full cost of service.

As energy demands evolve, will innovative tariff structures and regional collaborations prove effective in maintaining affordable and reliable electricity for all consumers?