Utilities are spending big as the AI boom drives up power demand
Average electricity bills spiked 10% over the past year in more than a dozen states
Electricity lines in California. (Dean Musgrove/Los Angeles Daily News via Getty Images)
U.S. utility companies are splurging on lobbying efforts, as the boom in AI development drives up electricity costs.
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The level of lobbying-related spending among electric utility firms is on pace to reach $150 million in 2025, the highest level in 15 years, according to disclosure data on OpenSecrets. Southern Compnay, Edison Electric Institute, and Duke Energy are the trio of utility companies leading the pack.
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Total spending by Southern Company amounted to $8.2 million this year so far, followed by $7 million for Edison Electric Institute. Last year, utility companies spent $132 million in lobbying efforts.
Bloomberg first reported the development.
Average electricity bills spiked 10% over the past year in more than a dozen states, according to the Energy Information Administration. The District of Columbia, Maine, and New York reported the steepest year-over-year hikes in electricity costs in August, the latest federal data available showed.
Climbing power bills will likely make affordable energy a key issue in next year's midterm elections. The Trump administration has slashed at least $8 billion clean energy programs meant to upgrade an aging power grid, which could further magnify price pressure on households.
Rising energy bills were part of the gubernatorial races in Virginia and New Jersey, where candidates are pushing for state governments to step into energy markets. Rep. Mikie Sherrill, the Democratic candidate for New Jersey governor, released a plan for a one-year freeze on utility rates.