American electricity prices spiked in September, according to data released by the United States Energy Information Administration in late November. One expert indicated to Utility Dive that utility companies are at least partly to blame.

What's happening?

The EIA's data revealed that wholesale electricity prices increased by 7.4% in September 2025 as compared to September 2024. 

Much of the country experienced a warmer-than-average September this year, possibly contributing to higher cooling demands, per Utility Dive. However, that detail may be just a small piece of the puzzle.

While the reporting outlet spoke to a range of experts with a variety of insights, the chair of the Electricity Transmission Competition Coalition and president of the Industrial Energy Consumers of America, Paul Cicio, blames utility companies.

These companies, Cicio explained, are spending more on transmission and distribution while eyeing higher profits. "They are monopolies," Cicio told Utility Dive. "They have no reason to reduce costs so they are going to spend as much as they can, and they have."

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Why do utility companies' spending habits matter?

To figure out why these spending habits matter, another question needs to be answered first: Why are companies spending so much on transmission and distribution infrastructure and operations?

The data centers that power artificial intelligence could be one cause. Cicio didn't state this outright, and electricity prices are complex, but some experts suspect AI energy demands could be a contributor to price rises across the U.S. 

According to late-September reporting from Bloomberg, wholesale electricity costs are up as much as 267% from five years ago in areas with significant data center activity. While those who go solar can save on their energy bills in the long run (with some help from The Cool Down's Solar Explorer), the vast majority of customers currently rely on fossil fuels. 

Millions of Americans are struggling to pay their bills, with 36% citing energy bills as a major source of stress. Some residents living near data centers have also reported noise and air pollution, which have affected both the local environment and quality of life.

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What's being done about it?

Those looking for ways to lower their energy bills may have several options available. 

Solar energy, paired with battery storage, is one way to go. To simplify the process and save up to $10,000, you can try TCD's Solar Explorer. TCD's partners can compile solar panel sellers near you and help you find the best options available, including potential $0-down subscription options.

One is Palmetto's solar leasing program, LightReach, which can save you up to 20% on your utility rate. If you're interested, you can also use EnergySage to compare costs and explore your options.

Adding effective insulation is another way to reduce your energy bill. The less heat that escapes your home through gaps and cracks, the less you'll have to pay for this winter — the same goes for cool air in the summer. 

Speaking of heat, pairing solar power with electric appliances like heat pumps can further reduce utility costs. If you're interested in finding the right heat pump for your budget, check out TCD's HVAC Explorer.

While all of these fairly straightforward options can help on an individual level, the bigger picture may be more complicated. Cicio, for one, believes that state and federal regulators haven't brought sufficient oversight to bear. And, according to Politico, electricity rates are expected to appear on the ballot in the 2026 midterms.

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