Electricity is essential to everyday life. But if you’ve noticed your power bill rising, you’re not alone. Many Americans are asking the same question: What am I actually paying for, and why does it cost more now?
The truth is, your bill is made up of several parts, and power generation is just one piece of the puzzle. Recent data shows that costs for delivering electricity (like transmission lines and infrastructure) and state-level policy mandates are increasingly driving monthly bills higher—not the cost to generate electricity itself.
At the Electric Power Supply Association (EPSA), we believe you deserve transparency. We partnered with Energy Tariff Experts to break down what’s behind rising costs—and how competitive electricity markets help keep prices lower, more efficient, and accountable to you.
- MYTH: Most of your electricity bill comes from generating power.
- FACT: Over the study period, generation accounted for only 45% of the cost of the average electric bill across the 5 utilities studied.
- MYTH: Generation costs are skyrocketing, and consumers are on the hook.
- FACT: Generation costs today remain lower than in recent years across the Mid-Atlantic.
- MYTH: Capacity prices are rising to new highs, meaning much higher rates for consumers.
- FACT: Capacity prices make up only a very small portion of electric bills across PJM. They’ve seen increases from recent record lows but remain consistent with average prices across the last decade.
Learn more about what’s in the report.
Competitive Markets and You
What to know about power generation costs and energy policy in your state.
What would happen if my state left the competitive electricity market?
Despite claims to the contrary, utilities are not necessarily able to build new generation any faster than independent developers. A full return to a monopoly utility model would give control over every aspect of the electricity system to utilities and their state regulators. New project costs would fall directly to residents through increases in utility bills, without regard to whether the project has cost overruns, falls behind schedule, or fails entirely.
