By Roger Donway
Editor Note: The Institute for Energy Research (IER) and Always on Energy Research (AOER) issued the following on Independence Day last week.
“BlueStatesHighRates.com, a new interactive index from Always On Energy Research and the Institute for Energy Research, shows that the steepest increases sit in the bluest states across the 50 states and Washington, D.C.”
WASHINGTON DC (07/04/2026) – As Americans celebrate the 250th anniversary of the nation’s founding on this Independence Day, a new analysis highlights how state energy policies continue to shape the cost of keeping the lights on, starting with the original 13 colonies that declared independence in 1776. The remaining states will be added in the coming weeks.
This expanded “Blue States, High Rates” analysis spotlights the following policies:
- Renewable portfolio or carbon-free electricity mandates
- Net-metering programs
- Carbon pricing or cap-and-trade participation
- Adoption (or absence) of data center consumer protections
- Access to affordable natural gas
- Utilities pursuing independent net-zero goals
Tom Pyle, President of the Institute for Energy Research, issued the following statement:
Energy affordability remains a top concern for American families and businesses. Federal figures show U.S. electricity prices rose 27% from January 2021 through January 2025, with an additional 11% increase from January through September 2025. However, there is wide variation in electricity prices across states, driven more by state-level policies than by any other factor. Under the Federal Power Act, states have exclusive authority over generation portfolios, siting, retail pricing, and resource adequacy, giving them direct control over which power sources supply the grid and at what cost to families and businesses.
Americans deserve transparent information on how state decisions directly affect their wallets. Electricity prices tend to be significantly higher in traditionally Democratic-leaning states. Across the continental U.S., 86% of states with electricity prices above the national average voted for the Democratic presidential nominee in both the 2020 and 2024 elections. By contrast, 80% of the 10 states with the lowest electricity prices voted for the Republican candidate in those same elections. 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.
Amy Cooke, the President and CEO of Always On Energy Research, issued the following statement:
“Democrats have realized voters are furious about rising electric bills and are hoping to capitalize on that frustration in the upcoming midterm elections. But before blue-state politicians blame everything from the rollback of federal wind and solar subsidies to new data center development, they should take a hard look in the mirror.
“BlueStatesHighRates.com, a new interactive index from Always On Energy Research and the Institute for Energy Research, shows that the steepest increases sit in the bluest states across the 50 states and Washington, D.C.
IER Experts Available For Interview On This Topic:
- Tom J. Pyle, President
- Kenny Stein, Vice President of Policy
- Alexander Stevens, Manager of Policy and Communications
Always On Energy Research Experts Available For Interview on This Topic:
Additional Background Resources From IER and AOER:
- Blue States, High Rates
- New England’s Net Zero: Nuclear Beats Wind and Solar
- Fueling America: 250 Years of Energy Innovation
