Utilities seek $9.4bn in rate hikes

PowerLines said on May 19 that U.S. utilities filed $9.4 billion in rate-increase requests in the first quarter of 2026, extending a run of large filings after a record $31 billion sought in 2025. The nonprofit said those first-quarter requests could affect more than 81 million customers. Marketplace, citing PowerLines and Ipsos, reported that data centers, aging grid equipment and severe weather were among the forces pushing bills higher. Charles Hua, PowerLines’ founder and executive director, said the pattern now is not a one-off spike but a sustained period of larger requests. ### Where does the $9.4 billion figure come from? PowerLines released the number in a May 19 report covering utility rate cases filed in January through March 2026. The group said the filings span the country and sit alongside new polling conducted with Ipsos. PowerLines said the quarter’s requests are lower than 2025’s full-year record, but still exceed any other year over the past decade on a comparable first-quarter basis, according to Hua’s comments to reporters reported by RTO Insider. (powerlines.org) Ipsos surveyed 2,045 American adults, including 1,912 electric billpayers, from March 14 to 16, 2026, for the related polling, PowerLines said. The group said 68% of Americans reported their electric or gas bill had risen over the past year, while 77% said they were worried costs would keep climbing. (powerlines.org) ### Why are utilities asking for more money now? Marketplace reported on May 20 that data centers are one driver, but not the only one. Tom Bullock of the Citizens Utility Board in Ohio told Marketplace that data centers are “the first boulder rolling down the hill,” while Michael Levy of Baringa said utilities are also replacing grid assets built in the 1960s and 1970s and repairing equipment stressed by more frequent severe weather. (powerlines.org) Charles Hua also pointed to fuel-market disruption tied to geopolitical conflicts. PowerLines said another pressure point sits beyond the quarter’s filings. The group said investor-owned utilities outlined $1.4 trillion in planned capital investment through 2030, up 21% from the prior year’s five-year plans. Hua told RTO Insider that utilities generally earn returns on capital expenditures, linking future spending plans to future rate cases. (marketplace.org) ### How much of these requests usually reaches customer bills? Charles Hua told reporters on May 18 that regulators have been approving a higher share of utility rate requests this decade. RTO Insider reported that applying a 60% to 70% national average approval range suggests most of the $9.4 billion requested in the first quarter could ultimately flow into customer bills. Hua said it is not well understood why approval rates have risen in recent years. (powerlines.org) PowerLines’ polling points to widening frustration around that process. The group said only 29% of respondents believed their state government does a good job protecting their interests in utility regulation, and just 17% said their utility puts consumers’ interests ahead of its own. Mallory Newall, senior vice president of public affairs at Ipsos, said concern about rising utility costs cuts across income and political groups. (rtoinsider.com) ### Why does this matter beyond household bills? Marketplace reported that the causes behind the filings extend into grid expansion, reliability and new large loads. In practice, those cases can shape when utilities recover spending for generation, transmission, substations and other upgrades tied to demand growth, including from data centers. The same filings also become public proceedings, with consumer advocates, regulators and utilities arguing over who should pay and when. (powerlines.org) PowerLines said utility bills have become a broader economic issue as electricity and gas costs outpaced inflation in recent years. The group’s report said nearly 80 million Americans are struggling to pay utility bills, while 61% of respondents said energy costs had added to their financial stress. (marketplace.org) ### What happens next in these cases? State public utility commissions will decide, case by case, whether to approve, reject or modify the pending requests. PowerLines said its first-quarter tally covers filings already in the regulatory pipeline, and its separate spending review points to more cases ahead as utilities pursue their 2030 capital plans. The next milestones will be commission hearings, settlement talks and written orders in the states where the largest requests are pending. (powerlines.org 1) (powerlines.org 2)