U.S. Utility Bills Increase in 2025 Under Trump Energy Push, Highlighting Disparities

Publication Date: August 24, 2025

Overview

In the first eight months of President Donald Trump’s second term, U.S. residential utility bills, particularly for electricity, have increased amid policies aimed at expanding domestic fossil fuel production and reducing regulations. National average electricity prices rose to 17.47 cents per kilowatt-hour (kWh) in May 2025, up 6.5% from the previous year, driven by factors including energy demand growth and policy shifts. States like Idaho, Utah, and Montana maintain notably lower costs through local resource advantages, while the U.S. overall enjoys electricity prices below those in many European nations but slightly above the global average, thanks to abundant natural gas supplies.

Facts

According to the U.S. Energy Information Administration’s (EIA) Electric Power Monthly report, the national average residential electricity price reached 17.47 cents per kWh in May 2025, compared to 16.41 cents per kWh in May 2024, marking a year-over-year increase.
Idaho recorded the lowest residential electricity rate at 11.88 cents per kWh in May 2025, followed by Utah at 12.63 cents per kWh and Montana at 12.90 cents per kWh, per EIA data.
These low-cost states sustain affordable rates through reliance on local energy sources: Idaho benefits from extensive hydroelectric power from rivers like the Snake, providing over 50% of its electricity; Utah leverages coal and natural gas from in-state reserves, supported by regulated cooperative utilities; Montana draws from coal mines and hydroelectric dams, with low population density reducing infrastructure strain.
Historically, U.S. electricity prices have fluctuated with fuel availability; the shale gas boom since 2010 lowered natural gas prices by over 60% by 2020, per EIA records, contributing to sustained affordability relative to pre-2000 levels.
Globally, the U.S. average residential electricity price of about 17 cents per kWh in 2025 is slightly higher than the world average of 16.5 cents per kWh but lower than in the European Union (around 25-30 cents per kWh in 2024), according to International Energy Agency (IEA) reports, due to U.S. access to cheap domestic natural gas versus Europe’s reliance on imports and higher taxes.

Perspectives

The Trump Administration, via its January 20, 2025, Executive Order “Unleashing American Energy,” asserts that promoting domestic oil, natural gas, coal, and nuclear production while streamlining permitting and reducing regulatory burdens will enhance energy affordability and security, stating it “will restore American prosperity” by increasing supply and lowering costs for consumers.
The Environmental Defense Fund (EDF), in a July 4, 2025, press release, argues that recent legislation signed by President Trump repealing clean energy incentives will raise energy costs and increase pollution, predicting higher utility bills as it shifts reliance to more volatile fossil fuels.
The Natural Resources Defense Council (NRDC), through a July 11, 2025, blog post, contends that the administration’s energy tax changes and regulatory rollbacks could increase household bills by undermining low-cost renewables, leading to job losses in clean energy sectors and greater long-term expenses for families.
PowerLines, a consumer advocacy group, in its April 2025 report “Utility Bills Are Rising,” highlights that utilities requested $20 billion in rate increases in early 2025, urging protections for vulnerable households as rising bills force trade-offs on essentials like food and healthcare.
The International Energy Agency (IEA), in its “Electricity 2025” report, notes that U.S. wholesale electricity prices fell 20% in 2024 from 2023 levels, returning to pre-COVID norms faster than in Europe or India, attributing this to robust domestic supply but warning of potential volatility from policy shifts.
The American Public Power Association, representing community-owned utilities in low-cost states like Idaho and Utah, emphasizes in its 2025 policy statements that localized resource management and cooperative models keep rates stable, advocating for federal support to maintain infrastructure without broad deregulation that could introduce market instability.

Considerations

Increasing U.S. energy demand from data centers and electrification trends could exacerbate price rises unless balanced by expanded domestic production, potentially shifting short-term savings from deregulation to long-term investments in grid resilience.
States with low utility costs demonstrate the value of leveraging regional resources like hydropower, suggesting public policy could incentivize similar localized strategies nationwide to mitigate disparities.
Compared to nations with higher costs, the U.S. benefits from natural gas abundance, but sustaining this edge requires addressing import dependencies and climate impacts through diversified energy mixes.
Policy rollbacks on clean energy may reduce immediate regulatory costs but could heighten exposure to fossil fuel price swings, prompting considerations for hybrid approaches that blend deregulation with renewable incentives.
Broader economic implications include potential inflation from higher utility bills, affecting low-income households disproportionately and underscoring the need for targeted assistance programs tied to energy efficiency upgrades.