Officials in Six States Seek to Block Utility Rate Increases

Officials and lawmakers in at least six states are taking steps to block proposed utility rate increases. The states include Arizona, Indiana, Maryland, New Jersey, New York and Pennsylvania. The actions come as electricity demand rises from data centers and utility profits increase. Some officials are pressing utilities to change how they finance system upgrades.

Arizona's attorney general is challenging two proposed rate increases before the state utility board. The office said the requests could be reduced if utilities receive only the cost of maintaining reliable service. The company later withdrew the request after discussions with stakeholders.

Indiana's governor appointed new utility commissioners tasked with addressing rate increases. A pending request by one utility seeks a 10.1 percent increase, or $193 million annually from ratepayers.

A report by the Energy and Policy Institute stated that profits at 110 for-profit utilities rose from under $39 billion in 2021 to over $52 billion in 2024. Consumer advocates say about 10 percent of a typical bill represents returns above levels considered reasonable under court precedent.

Utility executives have stated on earnings calls that affordability is a top concern. They note that federal data show electricity bills as a share of household income have declined over recent decades. Utilities maintain that approved returns are needed to attract investment for grid maintenance and reliability.

They warn that lower returns could lead investors to shift funds to utilities in other states.