U.S. Utilities Seek $23.1 Billion in Rate Increases Ahead of Midterms

Electric and gas utilities sought $23.1 billion in rate increases during the first nine months of 2026, adding a household-cost issue to the energy debate ahead of U.S. midterm elections.

Third-quarter filings alone could affect future bills for 45.5 million utility customers. That figure refers to customers potentially affected by cases filed in the quarter; it does not mean their bills have already risen. The $23.1 billion total covers requests submitted over three quarters and is not an approved amount. Regulators decide whether to approve proposed changes.

The September consumer price index showed fuel oil up 74.2% from a year earlier and gasoline up 34.2%. Electricity rose 4.4%, while piped gas service rose 5%. The increases for the two fuels were larger than those for electricity and piped gas.

The September figures compare prices with a year earlier, while the Oct. 12 gasoline and diesel readings are weekly averages. Regular gasoline averaged $4.331 per gallon nationwide, up $1.270 from a year earlier. Diesel averaged $6.179, up $2.514 year over year.

Residential electricity prices have climbed over a longer period. The annual average reached 17.30 cents per kilowatt-hour in 2025, up from 13.66 cents in 2021, a calculated increase of about 26.6%. The 2025 figure is preliminary.

Utility filings cite transmission and distribution spending, profit-related requests and costs associated with extreme weather. Data-center demand has also entered the debate over who should pay for new generation and grid upgrades. Regulators weigh these issues as they review proposed rate changes.

Energy costs feature in competitive House and Senate races in Michigan, Ohio, Alaska, Colorado and Pennsylvania. The election debate also includes market expectations for gasoline prices on Election Day.

“This is no longer a boring, sleepy energy story,” said Charles Hua, executive director of PowerLines.

The general election is Nov. 3, as regulators consider whether to approve the proposed rate changes.