Trend toward electric utility rate increases in regulated markets continues in 2024
September 9, 2024
Utility regulators in the United States are considering increases to electricity rates again this year as electric utilities seek to cover the investments needed to maintain and expand their systems. Utilities requested rate increases in recent years to pay for improvements to transmission and distribution lines to withstand increasingly serious weather and fire events, prepare for increased electrification as state and federal clean energy legislation is implemented, and move more energy reliably, according to S&P Global Market Intelligence Capital IQ Pro.
State utility regulators signed off on $9.7 billion in net rate increases in 2023, more than double the $4.4 billion authorized in 2022. The net increase—increases minus decreases—reflects $10.3 billion in authorized rate increases and only $0.6 billion in rate decreases. More than one-third of the net rate increase supported increases at two California utilities seeking to make their grids less susceptible to wildfire.
