INDIANAPOLIS, IND. (WOWO) Investor-owned electric utilities are earning higher profits at the same time that household electricity bills continue to rise, according to a new analysis.
The Energy and Policy Institute reviewed financial filings from more than 100 investor-owned electric utilities covering the years 2021 through 2024, with preliminary 2025 data included. Stateline reports that the study found utilities retained roughly 15 cents of every dollar collected last year, up from an average of 13 cents in previous years. For households paying around $200 a month, this means approximately $30 went to corporate profit.
The analysis highlights regional differences in profitability. Utilities in the Southeast, operating outside of organized wholesale electricity markets, reported the largest margins, retaining nearly 16 percent of revenue. Mid-Atlantic utilities operating within the PJM Interconnection market averaged about 11.8 percent, and utilities in New York and New England reported similar or lower profits. The highest margins among the utilities studied were recorded by MidAmerican Energy, Florida Power & Light, and Nantucket Electric.
Rising household utility costs continue to affect millions of Americans. The National Energy Assistance Directors Association found that approximately one in six households were behind on electric or gas payments at the end of 2025, with total arrears reaching $25 billion. Winter heating costs are projected to rise by 11 percent, more than four times the rate of inflation, reflecting higher energy prices and colder-than-average weather.
The Energy and Policy Institute recommends that state regulators consider lowering allowable profit rates for investor-owned utilities, scrutinize financing for new capital investments, link utility earnings to customer outcomes, and strengthen the role of consumer advocates in rate-setting decisions. Analysts say these measures could help balance corporate profitability with consumer affordability.
Stateline, part of the nonprofit States Newsroom network, produced the analysis using publicly available utility filings and financial reports. The study comes amid growing scrutiny by lawmakers and regulators over rising utility bills across the country.
