Issue Area
Utilities and the Grid
Overview
Utility policy is fundamental to addressing climate change and energy affordability, with today’s policies shaping costs and emissions for decades to come. Currently, outdated utility regulations are keeping fossil fuels online and energy costs high. State legislatures implement the regulatory and policy frameworks under which state utility commissions operate, giving legislators significant power in shaping how utilities operate. Lawmakers are increasingly addressing these issues by (1) updating laws governing how utilities are regulated, (2) improving utility oversight, (3) directing and reforming utility commissions, and (4) reshaping ratemaking processes to support affordability and clean energy.
Key Facts
There are three main types of utility ownership models: Investor-Owned Utilities, Publicly-Owned or Municipal Utilities, and Rural Electric Co-Ops.
U.S. electricity generation reached a record 4.43 trillion kWh in 2025 – roughly five times what the country produced in 1950. This marks a clear break from the relatively flat demand seen between the mid-2000s and early 2020s.
Estimates suggest electric utilities collected $244 billion in profits from household bills between 2021 and 2025 – about 13% of total consumer electricity spending over that period.
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