Investor-owned utilities across the United States have requested $23.1 billion in electric and gas rate increases so far this year, including a record-breaking $4.5 billion filed with regulators during the third quarter alone, according to a Wednesday report from the advocacy group PowerLines. The requests come as energy affordability emerges as a major concern heading into next month's midterm elections, with voters increasingly focused on rising costs amid data center expansion.
The third quarter saw the largest quarterly rate increase requests on record, PowerLines reported. By region, utilities serving roughly 11 million customers in the South requested $2.2 billion in the third quarter, pushing that region's total to $9 billion in rate increase requests for 2026 so far. Northeast utilities serving about 5.6 million customers requested $900 million during the quarter, while Midwest utilities serving 7.9 million customers sought $800 million. Western utilities serving 20.8 million customers requested $600 million. The biggest single rate hike came from FirstEnergy's Jersey Central Power & Light, which in July proposed a $253 million increase in base distribution rates plus recovery of $476 million in previously deferred storm costs spread over a decade. That utility said the average residential customer would see a total bill increase of roughly 8.8%, though the impact wouldn't hit bills until 2028.
"This quarter's rate increase requests reflect an ongoing rise in utility costs," said Charles Hua, founder and executive director of PowerLines. The report notes that nationally, the average price of residential electricity climbed by around 7.3% from April 2025 to April 2026, according to data from the North Carolina Clean Energy Technology Center. Households heating with electricity are projected to pay 9% more this winter compared to last year, the report states, while natural gas customers face a 5.8% increase and propane customers an 8.7% jump. Households relying on heating oil face a 31.3% increase.
The rate increases stem from growing utility investment to meet rising energy demand. The Edison Electric Institute, which represents investor-owned electric utilities, said last year its members were projected to make capital expenditures exceeding $1.1 trillion between 2025 and 2029. But a PowerLines analysis earlier this year found utility capital spending through 2030 had climbed 21% to $1.4 trillion. EEI spokesperson Dani Marx said utilities focus on reliability and affordability, noting that "every rate request gets rigorous review by state regulators." The industry group is pushing for permitting and market reforms to bring new resources online and supports large-load tariff agreements to ensure costs are fairly distributed, according to its recent report on utility cost control efforts. FirstEnergy's New Jersey utility called its proposal a "balanced approach" that invests in infrastructure while minimizing bill impacts, emphasizing that affordability and reliability "shouldn't be an either-or decision."
PowerLines founder Charles Hua framed the ongoing surge in rate requests as a test for elected officials: "As rate increase requests continue to climb across the country, the question is how elected officials will respond in this crucial moment." With other major rate requests coming from Oklahoma Gas & Electric, Indiana-Michigan Power, Dominion Energy Virginia, and CenterPoint Energy in Texas, regulators face mounting pressure to balance infrastructure investment against household affordability as the election approaches.