Voter anger over the cost of living is hurtling forward into next year’s midterm elections, when pivotal contests will be decided by communities that are home to fast-rising electric bills or fights over who’s footing the bill to power Big Tech’s energy-hungry data centers.
Voters appear to have realized they’re already picking up the tab in surging electricity prices.
Front and center may be electricity bills, which in many places are increasing at a rate faster than U.S. inflation on average — although not everywhere.
“There’s a lot of pressure on politicians to talk about affordability, and electricity prices are right now the most clear example of problems of affordability,” said Dan Cassino, a professor of politics and government and pollster at Fairleigh Dickinson University in New Jersey.
Rising electric costs aren’t expected to ease and many Americans could see an increase on their monthly bills in the middle of next year’s campaigns.
Gas and electric utilities are seeking or already secured rate increases of more that $34 billion in the first three quarters of 2025, consumer advocacy organization PowerLines reported. That was more than double the same period last year.
With some 80 million Americans struggling to pay their utility bills, “it’s a life or death and ‘eat or heat’ type decision that people have to make,” said Charles Hua, PowerLines’ founder.
In Georgia, proposals to build data centers have roiled communities, while a victorious Democrat, Peter Hubbard, accused Republicans on the commission of “rubber-stamping” rate increases by Georgia Power, a subsidiary of power giant Southern Co.
Monthly Georgia Power bills have risen six times over the past two years, now averaging $175 a month for a typical residential customer.
Hubbard’s message seemed to resonate with voters. Rebecca Mekonnen, who lives in the Atlanta suburb of Stone Mountain, said she voted for the Democratic challengers, and wants to see “more affordable pricing. That’s the main thing. It’s running my pocket right now.”
Now, Georgia Power is proposing to spend $15 billion to expand its power generating capacity, primarily to meet demand from data centers, and Hubbard is questioning whether data centers will pay their fair share — or share it with regular ratepayers.
Midterm elections will see congressional battlegrounds in states where fast-rising electric bills or data center hotspots — or both — are fomenting community uprisings.
Analysts attribute rising electric bills to a combination of forces.
That includes expensive projects to modernize the grid and harden poles, wires and substations against extreme weather and wildfires.
“The cost of utility service is the new ‘cost of eggs’ concern for a lot of consumers,” said Jennifer Bosco of the National Consumer Law Center.
Meanwhile, communities that don’t want to live next to one are pushing back.
Still, the impact is still more uneven than other financial stressors like grocery costs, which just over half of U.S. adults said are a “major” source of stress.
And electric rates vary widely by state or utility.
For instance, federal data shows that for-profit utilities have been raising rates far faster than municipally owned utilities or cooperatives.
In the 13-state mid-Atlantic grid from Illinois to New Jersey, analysts say ratepayers are paying billions of dollars for the cost to power data centers — including data centers not even built yet.
Next June, electric bills across that region will absorb billions more dollars in higher wholesale electricity costs designed to lure new power plants to power data centers.
Drew Maloney, the CEO of the Edison Electric Institute, a trade association of for-profit electric utilities, suggested that only some states are the drivers of higher average electric bills.
“If you set aside a few sates with higher rates, the rest of the country largely follows inflation on electricity rates,” Maloney said.
Still, other states are feeling a pinch.
In Indiana, a growing data center hotspot, the consumer advocacy group, Citizens Action Coalition, reported this year that residential customers of the state’s for-profit electric utilities were absorbing the most severe rate increases in at least two decades.
Republican Gov. Mike Braun decried the hikes, saying “we can’t take it anymore.”
___
Associated Press reporter Jeff Amy in Atlanta contributed to this report.
