Energy Secretary Chris Wright says high electricity costs are a political choice in the United States today. The evidence at hand indicates the Secretary isn’t wrong.
“If you have expensive energy in your state…it’s because politicians and regulators chose to do that,” Wright said in a recent interview with the Wall Street Journal. “It is not bad luck, it is not marketplace…there is no reason to have these rapid increases in electricity prices – no reason, but politics.”
This is correct, and the disparity that exists in electricity bills in red states and blue states can be easily seen in a national map published by the U.S. Energy Information Agency (EIA), along with its supporting data.
EIA’s data shows the states with the highest rates include Democratic strongholds like California, New York, Hawaii, and the New England states. Meanwhile, the states with the lowest utility bills include the reddest of red states like Louisiana, Arkansas, Oklahoma, Texas, Nebraska, Wyoming, Idaho, North Dakota, and Iowa. This all ties directly in with the findings in a recent study by the Institute for Energy Research that I wrote about in January.
There is no real mystery here: Democrats seek to exploit the “affordability” issue in the upcoming midterm elections, but the truth is their policies created that issue to begin with. In his interview, Wright provides the proof points:
Electricity prices were up 6.7% year over year in December, nearly 40% since 2020. That is due to the United States adopting “UK-style” energy policies under the Biden and Obama presidencies, like forcing coal plant closures and wind/solar mandates.
Utility rates rose two times the rate of inflation in Democrat-governed states over the last five years, in GOP states, only half the inflation rate.
States with Renewable Portfolio Standards (RPS) have 50% higher prices than those without; 28 states enforce them, driving costs up.
Biden’s $5 trillion stimulus (for a $1.5T GDP gap) fueled inflation across the board but is now fixable via policy reversals like the ones Wright and other Trump officials are now pursuing.
“We’ve had a tailwind of these things to drive up our own energy prices,” Wright says, “And so that’s a battleship we’re stopping and turning back.”
Turning a policy battleship in the middle of an ocean takes time, but Wright’s efforts produced results during the recent major winter storm. In several regions, coal-fired power plants for which Wright acted to delay scheduled premature retirements generated needed baseload power to avoid blackout conditions as wind and solar failed to perform. Keeping many of those coal plants – and natural gas plants also scheduled for premature retirements under absurd RPS mandates – running will be crucial to maintaining integrity and reliability on grids from coast to coast in the years to come.
The good news for Americans is that this country enjoys an incredible abundance of all the natural resources and raw materials needed to restore sanity and reliability to our power grid. All that’s really needed is the political will to get it done while keeping electricity bills affordable.
Wright and the red states on EIA’s map have shown us the way. That’s true even in Texas, one of the few red states that maintains an RPS of its own. There, policymakers fell asleep at the wheel about the need to maintain a needed fleet of dispatchable reserve capacity, a mistake for which Texans dearly paid during 2021’s Winter Storm Uri.
But, in contrast to their peers in many blue states, Texas policymakers showed a capacity to learn from their mistakes, enacting a series of effective reforms over the last five years that vastly improved grid reliability.
In the recent Winter Storm Fern, the ERCOT-managed Texas grid, which proved to be the national poster child for grid failure in 2021, came through as a shining object lesson on how to fix past mistakes while remaining one of the 10 states with the lowest utility rates.
If you live in a state where power bills are too high, that is a choice your political leaders have made for you to endure. You should factor that reality into your thinking next time those politicians are up for re-election.
David Blackmon is a contributor to The Daily Caller News Foundation, an energy writer, and consultant based in Texas. He spent 40 years in the oil and gas business, where he specialized in public policy and communications.
Arizona has hardly had an opportunity to recover from the aftershocks of Biden-omics. The trillions of dollars injected into the economy through the so-called Inflation Reduction Act continue to work their way through the system in the form of higher prices and eroded purchasing power. Open-border policies that expanded the labor supply at the lower and middle ends of the wage scale have depressed wages. And the Biden Administration’s unprecedented regulatory burden on industry, a nearly $2 trillion drag on the economy, will take far longer than a year to unwind and correct.
Unfortunately for Arizona, efforts to fix these problems at the federal level cannot be fully realized here at home because Katie Hobbs remains our Governor.
Hobbs has harmed Arizona’s recovery, overseeing a massive fall from 4th in the nation in job growth to 47th. She inherited a booming local economy after a Republican legislature and Governor ushered in a 2.5 percent income tax, incentivized entrepreneurs and small businesses, prioritized deregulation, and expanded choice and freedom in education. Yet Hobbs has managed to squander that opportunity. In fact, it takes a special skill set to be perfectly set up for success and then drive a working model into the ground.
And Hobbs knows she’s to blame. That’s why she’s now desperately trying to reinvent herself by pushing Trump-esque tax cut rhetoric while clinging to the same big-spending, high-tax policies that caused the damage in the first place. At her core, she remains a California-style Democrat who would rather govern Newsom-style than embrace the Republican solutions that actually work. That’s why, despite a Republican legislature that has delivered tax relief bills, more disciplined budgets, and common-sense deregulation, she has earned a reputation as the veto queen.
As a result, Arizonans are dealing with real affordability woes, and they best not hinge their hopes on Hobbs.
Despite responsible budgeting and repeated tax relief efforts by Republican lawmakers, affordability pressures continue to mount. Taxes are creeping higher at every level of government. Utility bills have surged. Housing costs are outpacing wage growth. And programs intended to help struggling families are losing billions to fraud, waste, and mismanagement.
That is why the 2026 legislative session must focus on Affordable Arizona…
Despite the noble work of Republican lawmakers over the past five years to reduce the state’s burden on taxpayers (lowering and flattening the income tax, eliminating tax on renters, and addressing taxes on food,) cities and towns are constantly undermining this progress through rampant tax, fee, and utility rate increases.
Arizona’s affordability is being eroded through the insatiable tax-hungry decisions of city and town councils and their year-over-year spending sprees. If taxpayers have not noticed already, surely, they are feeling the pinch as these tax and fee hikes continue to stack one on top another. Red or blue, no city is immune, most likely your costs are going up…
I recently conducted an informal survey among about 50 of my neighbors, asking them, “What do you think your City of Mesa utility payment is used for at the city?” Some said ‘water.’ Some said, ‘water and sewage.’ And a few said, “water, sewage, and trash.” But only 2 of 5o included ‘other city government services including police and fire.’ Those two individuals had been at an Encore Conservative Club meeting where we had discussed this exact subject.
I believe this simple survey is representative of the entire City of Mesa, where more than 90% of the residents are totally unaware that 30% of their utility bill is transferred from utility payments to the “General Governmental Fund” for the City.
According to the Oxford English Dictionary, there are two definitions of “transparency” that are relevant to this discussion: 1) the quality of something, such as a situation or an argument, that makes it easy to understand, and 2) the quality in something, such as an excuse or a lie, that allows somebody to see the truth easily. The current City of Mesa utility bill is not “transparent” according to these definitions because it does not make clear to those paying the bill what they are being charged for: 70% for city utilities and 30% for other government services. I would like to challenge the mayor, and city council to make Mesa utility bills more transparent by including exactly what is paid for. And I might also suggest that the 30% of utility bills for general governmental uses should not have sales tax applied to it.
Councilman Adams stated in the September 22nd council meeting that the City was transparent about this subject because “if you looked you could find it.” But I would argue based on the above informal survey that you have to know that you need to look and further, that you need to understand where to look! While I applaud the City posting a special link to proposed utility rate adjustments on its website, including dates of relevant city council meetings, an informative video, and an online comment card, the information is somewhat obtuse. A 164-page “Current Utility Rate Book” is not at all helpful for the average Mesa resident; the staff presentations from the September 22nd council meeting are helpful but take multiple steps in website navigation to find (if you know they exist there).
I want to be abundantly clear. I am not accusing anyone, council nor staff, of concealing or hiding anything. Council and staff are following the existing process. But it has taken me more than a year of making mistakes and misinterpretations to understand how the City works, including being politely but repeatedly corrected by city financial staff (thank you!). I am a former Director of Engineering who has managed budgets of millions of dollars. If it takes me this much effort to understand, what chance does the average resident have?
Even for those who know that their utility payments contribute to the general governmental fund, few understand the consequences of the rigid application of the 30%. Because it is a percentage applied to the total revenues, it means that there is an “automatic tax increase” due to the corresponding increase in General Funds Transfers every time there is a utility rate increase. The City Ordinance (#5559) does not require 30%, but both city council and staff very rigidly apply it each year. In past years, there has been no discussion of whether this tax increase is needed or not. It just happens. I would like to challenge the city council to hold that tax increase to zero (no increase, no decrease) for this upcoming year, rather than just applying the 30%; the net result will be 28.8% instead. This will have zero impact on utilities because their requested increases can be approved as requested.
But this proposal (to fix the Transfer to General Fund from Utility Fund) illustrates another complication: the value for the General Fund Transfer, currently shown as $147M, was set during the budget process in May/June of this year. So, any change now would require city staff to revise the budget. That’s not impossible but highly unlikely especially considering these funds are earmarked for public safety. Public safety funding can be held constant by using other funds such as Environmental and Sustainability.
Another place for unintended obfuscation is in the Debt Service Transfers, with a proposed increase of $18.7M or 16.1% for FY25/26. This line item covers paying for principal and interest on utility bonds. This is the biggest increase for this year and, all future years, based on the 5-year plan presented to the council. Debt Service Transfers total 38% over the next 5 years leading to a total projected increase of 51%! These bonds are approved in a wholly separate meeting in June by the council, so most of these increases are required or major construction projects will be stopped. Most residents of Mesa assume that they get to vote on “bonds,” which is true of bonds supported by secondary property taxes (and school bonds), but not utility bonds, which are approved by city council vote. What the average resident does not understand is that when utility bonds are approved at a council meeting in June, it is a commitment to increase utility rates for up to 30 years into the future. And we already have a commitment of 38% increases in the next 5 years!
Taken together, the General Fund Transfer increase ($9.3M), and the Debt Service Transfer increase ($18.7M) constitute 65% of the requested utility rate increase but are effectively pro forma because they were approved previously. While not at all hidden, is that transparent to the typical Mesa resident?
Finally, I do support the proposed “Water/Wastewater Capacity Fee,” which is related to the utility rate adjustments because if passed, it removes $400M in future utility bonds from current Mesa residents and instead charges developers and new growth users to pay for the additional capacity. If passed, this capacity fee will result in a smaller increase in this year’s adjustments but will reduce future increases even more.
One last picky comment: the utility rate adjustment presentations use a “typical user,” but the exact definition of which seems to be a pretty minimal water user. I would suggest that the city staff use a statistically significant definition by presenting a “median” user, someone for whom 50% of city water users pay (or use) more, and 50% pay (or use) less.
I hope there will be good conversations on these subjects at the city council meetings on November 17th, for introduction of the utility rate adjustments and December 1st, for the public meeting on utility rates.
David Winstanley is a retired Director of Engineering at Honeywell Aerospace, former Chair of LD15 Republicans, and a conservative activist for local issues in the East Valley.
It was Biden’s biggest “accomplishment.” The so-called Inflation Reduction Act, which he later admitted had nothing to do with inflation (it actually did, just not in the direction the name suggested) but was really about dumping billions (really trillions) into subsidizing the green new scam. It was the biggest acceleration towards the “Net Zero” climate scam resulting in utilities across the country, especially here in Arizona, spamming the grid with unreliable energy generation such as solar, wind, and battery storage, driving up rates for utility customers while shattering reliability.
What finally made it through Congress and was signed into law on July 4th terminated tax credits for electric vehicles, “energy efficient” home improvements, and residential solar this year. As for the much larger credits, those subsidizing grid scale solar and wind farms, it’s much more complicated.
