Public and Political Pressure Rise Over Utility Profits Amid Electricity Affordability Concerns
Rising electricity costs are fueling public discontent, with protests disrupting a major utility conference in Las Vegas. This growing backlash is prompting states to consider regulatory or legislative actions aimed at reducing investor-owned utilities' return on equity (ROE). Consumer advocates argue these measures are necessary for affordability, while utilities warn that lower ROEs could hurt their credit ratings and ultimately raise costs for customers. According to recent reports from the Lawrence Berkeley National Laboratory, electricity prices charged by investor-owned utilities have risen faster than those of public utilities. These IOUs also submitted record revenue requests last year, with regulators approving a higher-than-usual percentage of these increases over the past five years. In 2025, utility ROEs averaged around 9.7%, according to Synapse Energy Economics. The debate is intensifying as affordability concerns merge with public resentment toward data centers and their high resource consumption. States like California have already reduced ROE for major utilities, while others are considering tying returns more closely to economic indicators such as the 10-year Treasury bond.
Topics: affordability concerns electricity pricing public protests return on equity (ROE)