In 2025, homes paid 17.8¢ per kilowatt-hour at investor-owned utilities, compared with 14.5¢ at public utilities and 14.1¢ at co-ops. Since 2020, investor-owned prices have risen 34% and public prices 19%, while inflation over the same period reached 24%.
Most of the gap opened between 2020 and 2023, during the energy price spike. Investor-owned prices rose 25% in that window, compared with 11% at public utilities and co-ops. Before and since, both groups rose at roughly the same pace. Adjusted for inflation, investor-owned prices rose 7.9% over the full period, while public and co-op prices fell 4.3%.
Public power is common in cities and near federal dams, where electricity is cheap. Public utilities also pay no income tax and can borrow tax-free, which explains part of the difference. However, these factors do not explain why the gap grew. Hydro-heavy states such as Washington, Vermont and Idaho show lower prices for public utilities.
Co-op homes have the highest monthly bills, at $159 in 2025, because they use the most power. Counting homes that buy power from retail suppliers, prices on investor-owned lines rose 36%. Investor-owned utilities earn a return for shareholders on what they build, while public utilities and co-ops have no shareholders. The data shows what homes paid, not the reasons behind it.
Source: Hacker News · Summarized by HeadlinesBriefing