Out of control utility bills have become another aspect of our affordability crisis — driven by an industry operating with too little accountability. Utility price increases are well outpacing inflation, even as utility companies are persuading lawmakers to allow them to continue raising prices on consumers. Alli Velshi explains how the unique business model is driving our utility prices up.

Electricity prices have risen nearly 40 percent since 2021, the fastest period of electricity price growth on record. As in, ever. Nearly 80 million Americans are foregoing meals, education, and healthcare to keep the lights on.

Companies say that increasing extreme weather, aging infrastructure, the transition to clean energy, and the growing power demand of data centers is behind rising costs. But the math isn’t adding up, because we have also been paying more for years. We’ve increased spending on the U.S. electrical transmission system five-fold over the past two decades. So, where is all that money going? Why is our electrical grid still unreliable, and in need of even more investment?

The problem is in the the utility business model. A regulated utility does not make money selling you electricity. The real profit comes from capital investment. Utilities are rewarded for spending more, guaranteeing them a profit on every dollar they invest, whether or not it’s necessary. Velshi explains the how and the why here.

LISTEN: WHAT’S REALLY DRIVING UP UTILITY PRICES

WATCH: UTILITY BILLS ARE OUTPACING INFLATION

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