Electricity Prices Are Surging. The G.O.P. Megabill Could Push Them Higher.

https://www.nytimes.com/2025/06/04/climate/electricity-prices-republican-big-beautiful-bill.html

Electricity Prices Are Surging. The G.O.P. Megabill Could Push Them Higher.
The combination of a data center boom, rising gas exports and cuts to clean energy tax breaks could spike American energy bills, analysts say.
By Brad Plumer and Rebecca F. Elliott
June 4, 2025 Updated 8:59 a.m. ET

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This week, the Senate is taking up Mr. Trump’s sweeping domestic policy bill, which has already passed the House. In its current form, that bill would abruptly end most of the Biden-era federal tax credits for low-carbon sources of electricity like wind, solar, batteries and geothermal power.

Repealing those credits could increase the average family’s energy bill by as much as $400 per year within a decade, according to several studies published this year.

The studies rely on similar reasoning: Electricity demand is surging for the first time in decades, partly because of data centers needed for artificial intelligence, and power companies are already struggling to keep up. Ending tax breaks for solar panels, wind turbines and batteries would make them more expensive and less plentiful, increasing demand for energy from power plants that burn natural gas.

That could push up the price of gas, which currently generates 43 percent of America’s electricity.

On top of that, the Trump administration’s efforts to sell more gas overseas could further hike prices, while Mr. Trump’s new tariffs on steel, aluminum and other materials would raise the cost of transmission lines and other electrical equipment.

These cascading events could lead to further painful increases in electric bills.

“There’s a lot of concern about some pretty big price spikes,” said Rich Powell, chief executive of the Clean Energy Buyers Association, which represents companies that have committed to buying renewable energy, including General Motors, Honda, Intel and Microsoft.

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