The report, which draws on U.S. Energy Information Administration data, highlights a widening cost disparity between utility models. In 2025, consumers in deregulated states faced rates of 23.41 cents per kilowatt-hour, significantly outpacing the 14.60 cents charged in traditionally regulated regions.
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Deregulated States See Residential Electricity Costs Soar 60% Over Average
Residential electricity customers in deregulated states paid 60% more on average in 2025 than those in regulated markets, according to a report from Power for Tomorrow. With nine of the ten most expensive states now operating under deregulation, the promise that market competition would lower consumer costs remains unfulfilled.
Brad Viator, president of Power for Tomorrow, noted that the cost gap is expanding as new demand from data centers and other large-scale loads puts pressure on the grid. Between 2024 and 2025, residential prices in deregulated states rose by 7.4%, nearly double the 4.4% increase recorded in regulated states. While advocates once argued that competition would suppress prices, the current data suggests that the burden of load growth is falling disproportionately on customers in deregulated markets, where every one of the ten most expensive states is currently positioned.
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