Exelon CEO Says U.S. Faces Blackouts by 2027

Exelon CEO Calvin Butler warned on July 13 that the U.S. could face widespread blackouts by 2027. Butler, who leads America's largest utility, said utilities require permission from states to build new power plants because investment has not kept pace with future demand.

Competitive electricity markets discourage investment by offering insufficient returns, according to analysts Leonard Hyman and William Tilles. They examined industry data from 2004 to 2024 and found that utilities increased their rate base by about 5.5% per year while electricity sales rose only 0.5% per year.

After adjusting for inflation, the real annual increase in the rate base was 1.2% over the same period.

Data for utility investment in 2025 was not yet available as of July 13, 2026. Butler argued that higher electricity prices, market reforms, or a return to regulated utility-owned generation would be needed to address the shortfall, with backup batteries and generators becoming more important for reliability.