Energy policy drives higher electricity rates in Democratic-leaning states

A joint report by the Institute for Energy Research and Always On Energy Research indicates that states with aggressive climate or net-zero policies experience higher electricity rates than those without such mandates.

The analysis, which expanded to include all 50 states and Washington, D.C., examined factors such as renewable portfolio standards, carbon pricing, and natural gas infrastructure. Researchers found that 86% of states with electricity prices exceeding the national average voted for the Democratic presidential nominee in both 2020 and 2024.

Specific data highlights California as having the second-highest rates in the country at 27.63 cents per kWh for 2025, more than double the national average. New York also ranks among the most expensive, at 21.62 cents per kWh. In contrast, the Southeast, which is predominantly Republican, maintains some of the lowest wholesale prices by focusing on least-cost reliability rather than carbon goals.