Americans are paying more for electricity than ever, and everyone seems eager to blame the usual suspects: AI, data centers, or tech companies “hogging” the grid. But a new article from The Washington Post’s Shannon Osaka, citing research from Lawrence Berkeley National Laboratory and The Brattle Group, makes something very clear — the real problem isn’t data centers or innovation. It’s the utilities.
According to the study, states with the biggest spikes in electricity demand — many fueled by data centers — actually saw lower prices overall between 2019 and 2024. Virginia, home to some of the largest data center hubs in the world, saw demand rise but prices dip. Meanwhile, states like California saw costs soar, even though their demand fell.
So what’s going on? It turns out the costs driving your bills higher aren’t about generating electricity. They’re about maintaining and “upgrading” the monopoly-controlled system that utilities have let age and crumble for decades. Now, they’re scrambling to replace that equipment, and more, and they’re making you pay for it.
Transmission and distribution costs have ballooned over the past two decades. At the same time, utilities are pouring billions into so-called “hardening” projects and grid expansions that too often serve their shareholders better than their customers.
Meanwhile, the cost of generating power from natural gas, coal, wind, or solar has dropped by 35 percent since 2005. Utilities and some politicians would like you to believe AI and data centers are driving a “new energy crisis.” The data tell a different story. When the system is managed efficiently, growing demand can actually lower costs by spreading fixed infrastructure costs over more customers. It’s only when monopoly utilities overbuild, overspend, and overcharge that everyone loses.
Common-sense action is overdue. Policymakers and regulators need to stop letting monopoly utilities write their own checks. We need:
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Transparent accounting of transmission and distribution spending.
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Independent oversight of infrastructure investments.
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Real competition and innovation in energy delivery, not monopolies protecting their turf.
The Washington Post may not have meant to make our case for us, but Osaka’s piece does exactly that. America doesn’t have a demand problem. It has a monopoly problem.
It’s time to stop blaming technology — and start holding the utilities accountable.
