Always On Energy Research and the Institute for Energy Research say state renewable mandates, carbon rules and other climate policies are contributing to higher electricity costs in Democratic-led states.
By yourNEWS Media Newsroom
Electricity rates are higher in many Democratic-leaning states, and researchers with Always On Energy Research and the Institute for Energy Research say state-level climate and net-zero policies are a major reason.
The groups completed an analysis last December using data from the U.S. Energy Information Administration and found that residents in blue states generally pay more for electricity than residents in red states. The findings come as electricity costs continue to rise faster than inflation, even as wind and solar make up a growing share of the power grid.
The analysis by Always On Energy Research and the Institute for Energy Research found that 86% of states with electricity prices above the national average voted for the Democratic presidential nominee in both 2020 and 2024. By comparison, 80% of the 10 states with the lowest electricity prices voted for the Republican candidate in both elections.
The researchers said the states with higher rates were more likely to have strict renewable energy requirements, net-zero emissions targets, net metering policies, carbon-pricing systems and restrictions that affect access to natural gas.
The initial report focused on California, Florida, Kentucky, Louisiana and New York, using those states to compare energy policy choices and their effects on electricity rates. Researchers said red states with lower rates generally did not have the same renewable portfolio standards, zero-emissions targets, net-metering programs and other climate policies found in higher-cost blue states.
The groups are now expanding their review to the remaining 45 states, according to Just the News. They released the first batch of new state profiles on the Fourth of July, focusing on the 13 original colonies.
Isaac Orr, vice president of research for Always On Energy Research, said the project is designed to help consumers understand how electricity prices are shaped by state decisions.
“We wanted to have a one-stop shop where people could kind of get a feel for what’s the energy mix in their state, what policies are being implemented, and what’s the impact of those policies on what they’re paying at the plug,” Orr told Just the News.
The expanded project, titled “Blue States High Rates,” gives readers an interactive way to compare electricity prices and energy policies by state. The full state profiles for the 13 colonies are available by clicking on each state and then selecting the link in the box that appears. For other states, the site currently provides basic information on average electricity rates and national ranking, with full profiles expected later.
The original report acknowledged that the divide is not solely partisan. Oregon and Washington, both reliably Democratic states, have lower electricity rates because of abundant hydroelectric power. Researchers said the broader pattern still shows that policy decisions can strongly influence electricity costs.
Sarah Montalbano, an energy policy analyst with Always On, said the project gave researchers a chance to examine the issue in depth while presenting it in a way ordinary consumers can follow.
“We obviously have a perspective, but the ingredients are right there on the label for people,” Montalbano told Just the News.
The report reviews several policy areas that researchers say affect electricity rates. One is renewable portfolio standards, which require utilities to supply a certain percentage of power from renewable sources by specific deadlines.
Another is utility net-zero pledges. The report argues that because utilities earn more profit when they spend more money, these commitments can encourage companies to build larger portfolios of new infrastructure than would be needed if reliability and affordability were the main goals.
The analysis also examines net metering, which credits rooftop solar customers for excess electricity they send back to the grid. Other areas reviewed include carbon pricing, cap-and-trade programs, policies affecting natural gas infrastructure and data center protection policies.
“The map shows these kinds of subtle distinctions in the price of electricity for each of these states, and we wanted to be able to demonstrate why that is from a policy perspective,” Orr said.
The project is being released in phases because of the amount of analysis and documentation required. Alex Stevens, manager of policy and communications for the Institute for Energy Research, said the remaining state profiles will be added in the “near future.”
Stevens said the first report drew significant attention, including media coverage and Zoom meetings with state officials. He has also testified before the Maryland Legislature about how policies adopted by blue states affect energy costs.
The issue could take on greater political significance as the 2026 midterm elections approach and voters focus on affordability. Stevens said electricity rates are likely to become a national concern as households take a closer look at the relationship between state policies and utility bills.
Tom Pyle, president of the Institute for Energy Research, said federal data show U.S. electricity prices rose 27% from January 2021 through January 2025, followed by another 11% increase from January through September 2025.
The researchers said state governments have direct authority over many of the decisions that determine electricity costs. Under the Federal Power Act, states control generation portfolios, siting, retail pricing and resource adequacy, giving them power over which energy sources supply the grid and how much families and businesses pay.
“Americans deserve transparent information on how state decisions directly affect their wallet,” Pyle said. “The bottom line is that the decisions that states make, good or bad, have consequences for American families and businesses when it comes to electricity affordability.”
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