Rising electricity costs fueled voter discontent and became a defining issue in recent elections across the US. Victories for Democrats in New Jersey, Virginia, and Georgia this week highlight how energy policy is increasingly intertwined with voters’ economic anxieties.
These victories might signal a public rebuke of current energy infrastructure struggles — particularly those struggling to keep up with surging demand from data centers powering AI technology, electric vehicles, and domestic manufacturing. However, the new Democratic leadership faces immediate pressure to deliver on campaign promises of lower electricity bills, even as formidable challenges remain.
“Consumers have sent a clear message: they are paying attention and will hold public officials accountable for decisions that impact their utility bills,” declared Charles Hua, executive director of consumer advocacy group PowerLines, following the election results.
The Dire Reality of Energy Insecurity
For many Americans, skyrocketing electricity costs represent more than just an inconvenience; it’s a matter of survival. A staggering one in three households now reports foregoing necessities like food or medicine to afford energy bills, according to a 2024 US Census survey — a figure that has significantly worsened since a similar survey conducted in 2015 revealed one in five households faced this impossible choice. This growing crisis is termed “energy insecurity” and reflects a long-standing problem within the US energy system.
New Jersey exemplifies the severity of the issue, experiencing some of the most dramatic price spikes in the nation. Retail electricity rates jumped as high as 20 percent this summer, according to Heatmap. Incoming Governor Mikie Sherrill campaigned on an aggressive platform, pledging to immediately declare a state of emergency and freeze rate hikes upon taking office.
Virginia, another key battleground state, witnessed a less dramatic 3 percent rise in average residential electricity costs between May 2024 and 2025 – still lower than the national average of approximately 6.5 percent. However, anxieties surrounding future grid reliability have intensified amidst the burgeoning AI boom. Virginia currently houses the world’s highest concentration of energy-intensive data centers.
“Now we have a bogey man — data centers, these massive energy users who often secure sweetheart deals on wholesale electricity prices while regular consumers lack that leverage,” explains Tony Reames, Professor of Environmental Justice at the University of Michigan and Director of the Urban Energy Justice Lab. He previously held senior positions within the US Department of Energy during the Joe Biden administration.
A New Political Landscape for Electricity in America?
Both Sherrill and Spanberger — former roommates who served together in Congress before entering gubernatorial races — campaigned against Republican opponents who blamed soaring costs on environmental regulations hindering fossil fuel energy production. Voters seemingly rejected this argument, signaling a potential shift in public opinion. Solar and wind power have emerged as the most economical new sources of electricity generation, accounting for the majority of planned capacity additions across the US.
Despite these electoral victories, both incoming governors face significant headwinds. Implementing their ambitious energy agendas will require navigating complex logistical and political hurdles. Experts express uncertainty regarding Sherrill’s proposed rate freeze – a move that traditionally falls under the purview of separate regulatory authorities and wholesale electricity auctions. Such an action could also face legal challenges, Hua points out to Barron’s.
While there is bipartisan support for nuclear energy as a reliable 24/7 power source, particularly for data centers, timelines for building new plants remain lengthy. Next-generation reactors are still in the design or demonstration phases and likely several years away from commercial operation even after licensing and permitting hurdles are cleared. President Donald Trump’s administration has attempted to expedite this process through deregulation, which has ignited concerns about potential safety compromises.
Conventional nuclear projects have also faced cost overruns and construction delays – notably exemplified by Georgia’s Vogtle units 3 and 4, the first new US reactors in over three decades. Starting in 2009, these plants finally came online in 2023 and 2024 after ballooning $20 billion over budget. The cost burden has been passed onto consumers through higher utility bills, as reported by Reuters. This week’s election results saw voters responding with the appointment of two new Democratic utility commissioners to Georgia’s Public Service Commission – a body previously composed entirely of Republicans – responsible for setting electricity rates and overseeing utilities.
“The election of these new Public Service Commissioners represents a seismic shift in Georgia’s energy landscape, reflecting a burgeoning ‘new politics of electricity’ across America,” declared Hua.
Finding Solutions: Beyond Rhetoric
To truly alleviate the strain on household budgets, policymakers must address fundamental issues underpinning soaring electricity costs. Several factors contribute to the current crisis:
- Surge in Demand: After more than a decade of relative flatlining, electricity demand is now rising sharply due to data centers powering AI growth, increased electric vehicle adoption, and expanded domestic manufacturing.
- Global Gas Prices: Methane gas prices spiked following Russia’s invasion of Ukraine as Europe shifted its reliance towards US imports.
- Climate-Related Disasters: The US power grid has incurred escalating costs from increasingly frequent and severe weather events linked to climate change.
- Aging Infrastructure: Decades of underinvestment have left the country’s energy infrastructure in urgent need of modernization, with utilities investing heavily in replacing and upgrading power lines and related systems.
While these upgrades are essential, they often result in across-the-board charges for consumers regardless of their usage patterns or income levels. Reames advocates for a more equitable approach to rate setting, suggesting income-based payment plans, specialized rates for multifamily dwellings, and greater accountability from large commercial energy users like data centers.
“We need innovative solutions to support households struggling with energy poverty,” Reames emphasizes. “This includes exploring measures like community solar projects that can help reduce household bills while also incentivizing renewable energy development.” This could involve legally binding community benefits agreements – already used by advocacy groups to mitigate the impact of data center construction on nearby communities – which mandate contributions to local infrastructure and workforce development programs.
The recent election results clearly demonstrate that voters are demanding action on this critical issue. Whether these victories translate into meaningful policy change and tangible relief for struggling households remains to be seen. The next few years will likely prove pivotal in shaping the future of energy affordability and accessibility across America.
