A not-so-glowing attribute of American democracy is the ability of voters to act shocked and blame whoever is in charge when things don’t go well. So, it makes twisted sense that, as 2026 approaches, the Trump administration should pay the political price for bad energy policies inherited from the Biden administration and Democratic governors.
Years of flat energy demand and relatively stable electricity prices dulled Americans’ understanding of energy economics. Now, new data center demand, the end of cheap natural gas, and President Biden’s policy of replacing baseload nuclear and coal power with wind and solar have screwed up electricity price signals enough to shred household budgets and stun homeowners — just in time for a colder-than-average winter.
The numbers are as stark as a slate-grey November sky. Household spending on electricity for heating is expected to rise 10% this winter to more than $1,200. Utilities requested a $29 billion rate increase in the first half of 2025, double last year’s rate rise. Residential electricity rates rose 6.6% year-on-year as of June 2025, according to Utility Dive, after already rising nearly 30% between 2021 and 2024.
The causes of these electricity increases are multifaceted, yet, as a policy brief from the National Center for Energy Analytics reveals, subsidies to wind and solar are major culprits. Subsidies like the federal Production Tax Credit (PTC) distort electricity markets by artificially lowering prices, sometimes into negative territory, forcing otherwise competitive but unsubsidized generation out of the market.
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