Power Prices Set To Surge Under Donald Trump.
The Only "Big Beautiful Bill" You Can Expect From Trump Is Your Light Bill.
Donald Trump’s One Big Beautiful Bill set to cut spending in multiple ways, from food stamps to healthcare, but one cut not being discussed enough is to clean energy initiatives.
What Trump won’t tell you as he claims it’s because “climate change is fake.” A statement that defies scientific consensus, but also ignores how this will affect energy costs for everyday Americans.
So let’s talk about it.
Let’s quickly put into picture the initiatives being overturned, and why they were important even to those not privy to them.
The Inflation Reduction Act signed into law tax credits and incentives to help move more people to renewable energy sources. This includes but is not limited to: low income community credits, credits for solar panels, for new production and investment projects, and more.
Aside from the jobs this creates, the effects on climate change it has, it benefits even those not concerned with the environment or macroeconomics but only their pockets.
Simply put, diversifying what people use to satisfy their energy demand lowers energy prices for everyone. It’s supply and demand.
Per a study on CEBA (Clean Energy Buyers Association) conducted by NERA Economic Consulting average U.S energy prices are set to rise by 7% due to the One Big Beautiful Bill overturning these credits, or over $110 annually per household.
They also state this:
For American businesses, electricity bills would increase by about 10% by 2026 if the tax credits are repealed, with costs likely passed on to consumers in the form of higher prices for goods and services.
Available capacity on the grid is expected to decline over 167 gigawatts, right as AI is increasing it’s demand of the grid, only further adding to possible increased prices in the future.
Specifically, Midwestern and Western states’ prices would rise roughly 12% and 10%, respectively, over the course of the next four years the highest increases for any regions.
But it gets worse on a state level.
Here is what they find looking at the states that will be affected the worst:
Wyoming: The average electricity prices for both businesses and residences would rise by nearly 30%.
Kansas: The average electricity prices for both businesses and residences would rise by over 15%.
Missouri: The average electricity prices for both businesses and residences would rise by over 15%.
South Carolina: The average electricity prices for both businesses and residences would rise by nearly 15%.
Per Center for American Progress, nearly 60 utilities are raising or trying to raise electric bills by $38.3 billion and gas bills by $3.5 billion, affecting 56.7 million and 26 million electric and natural gas customers, respectively.
This has almost 75% of Americans rightfully worried about their utility costs.
With inflation increasing, unemployment on the rise, millions losing healthcare and food stamps, the last thing America needs is higher utility costs at home as well.