Understanding What’s Driving Your Electric Bill: New Analysis Finds Generation Costs Remain Steady—But Bills Are Rising Due to Other Factors
A new report from the Electric Power Supply Association (EPSA), prepared by Energy Tariff Experts (ETE), examines the key drivers behind rising residential electricity bills across the PJM Interconnection region, including Maryland, New Jersey, Ohio, and Pennsylvania.
Contrary to common assumptions, the study finds that the generation component of customer bills—including energy and capacity costs—has remained relatively flat and consistent with historical averages. Instead, recent bill increases are largely tied to:
- Rising investments by local utilities in transmission and distribution systems
- The impact of state policy mandates, which have increased costs by forcing early retirement of power plants and raising compliance costs for remaining generators
What’s Inside the Report?
The analysis:
- Breaks down the full electric bill into its major components
- Uses real-world utility data to calculate average residential costs over the past decade
- Explains how different utilities and state policies affect customer outcomes
- Provides inflation-adjusted comparisons to offer a clearer picture of actual cost changes
Why It Matters
As policymakers and regulators debate the future of the electric grid, it’s essential to understand where customers’ dollars are really going. This report provides transparency and insight to help guide better decisions—for reliability, affordability, and sustainability.
Addendum
Additional analysis provides further detail on New Jersey energy and capacity costs from 2010-2025. Updated June 11, 2025.
