Utah's power costs spike 15%
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Utah saw one of the nation's highest jumps in electricity costs in the past year.
The big picture: Power costs are rising nationwide — and could get even higher for some amid an explosion in data centers powering AI and more.
Why it matters: High utility bills could further stress many Utahns' budgets as pretty much everything else gets more expensive, too.
- The state's consumer sentiment dropped almost 5% last month, per the University of Utah's Kem C. Gardner Policy Institute report.
By the numbers: The nationwide average retail residential price for 1 kilowatt-hour of electricity rose from 16.41 cents to 17.47 cents between May 2024 and May 2025, per the latest available data from the U.S. Energy Information Administration. That's a gain of about 6.5%.
- Utah's power costs climbed 15.2% during that time, the third-highest spike in the nation.
- Maine (+36.3%) and Connecticut (+18.4%) saw the largest increases.
- Just five states experienced a decrease, including Nevada (-17.7%) and Hawai'i (-7%).
Zoom in: With electricity costs on the rise, Rocky Mountain Power, the state's largest utility, is seeking to hike residential rates.
- The company proposed a 30.5% rate increase in July 2024, citing "inflationary pressures," Utah News Dispatch reported.
- The request was later revised to an 18.1% uptick after drawing sharp criticism from state Republican leaders, including Gov. Spencer Cox.
- Last month, the Utah Public Service Commission reaffirmed its approval of a modest 4.7% rate bump after the utility requested a review.
What we're watching: Rocky Mountain Power filed an appeal to the Utah Supreme Court in June.
Between the lines: Electricity prices vary regionally and have many influences, from basic supply and demand to fuel rates and infrastructure costs.
- Yet many analysts point to power-hungry data centers as a driver of rising rates, especially in hotspots.
What's next: President Trump's administration is pushing "coal, natural gas, nuclear and hydropower plants to feed AI demand," Axios' Daniel Moore reports — but is hostile toward wind and solar.
- Adding a new power source of any kind, meanwhile, takes time and money.
The bottom line: Many of us are paying for the AI boom, whether we use the tech or not.