Aug 5, 2025 - News
California electricity bills spike amid AI boom
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Residential electricity prices in California increased almost 2% last year, and could get even higher amid a boom of data centers powering AI and more.
Why it matters: Surging power bills could further stress many Americans' budgets as pretty much everything else gets more expensive, too.
Zoom out: The nationwide increase outpaced California, with the average residential price for 1 kilowatt-hour of electricity rising about 6.5% from May 2024 to May 2025.
Yes, but: That's from a much lower rate, with California's starting at 34.36 cents and reaching 35.03 cents this year, second only to Hawaii.
- The nationwide average went from 16.41 cents to 17.47 cents.
Zoom in: San Diego, meanwhile, outpaces the California average.
- The latest report from the Federal Reserve Bank of St. Louis pegged 1 kilowatt-hour of electricity in December at about 42 cents.