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4w ago

U.S. Power Prices Rose in 2025 as Natural Gas Costs Surged, EIA Says

Higher gas costs drove wholesale gains, leaving New England with the largest increase.

A technician works at an Amazon Web Services AI data center in New Carlisle, Indiana, on October 2, 2025.
Power transmission lines are seen at sunset in Thousand Oaks, California, on January 27.
Wind turbines operate at Vineyard Wind 1 offshore wind farm, off the coast of Massachusetts, on July 19, 2025.

Overview

  • EIA reports average wholesale day-ahead prices climbed at most hubs in 2025, with ISO New England up $29/MWh and Mid‑Columbia down $14/MWh.
  • Benchmark Henry Hub averaged about $3.52/MMBtu in 2025, roughly 56% above 2024, reinforcing gas’s outsized role in setting power prices.
  • Retail pressure intensified late in the year: November rates rose in 46 states and D.C., led by D.C. (+25.9%), Pennsylvania (+20.3%) and Ohio (+18.6%).
  • Generation shifted as higher gas prices cut gas-fired output 3% while coal rose 11% and solar grew 32%, lifting total 2025 generation about 2%.
  • Utilities sought about $31 billion in rate increases in 2025 as uneven demand growth, aging infrastructure and data center load concentrated costs in specific regions.