A recent analysis from the Institute for Energy Research (IER) suggests that state-level policy decisions have a significant effect on electricity prices, with states led by Democratic administrations tending to have higher costs compared to those governed by Republicans. The study, titled “Blue States, High Rates: Electricity Prices and Political Leadership,” examined data on average electricity costs per kilowatt-hour across the United States.
The findings, shared with the Daily Caller News Foundation, indicate that political leadership and energy policy can play a major role in the affordability of electricity. According to the report, nine out of the ten states with the highest electricity prices are governed by Democratic leadership. The research attributes the elevated costs to policy decisions impacting energy production, regulation, and overall power supply management.
Comparing Red and Blue States
By contrast, states with more affordable electricity rates are predominantly under Republican leadership. The IER analysis found that around 80% of states with the lowest electricity costs per kilowatt-hour are led by Republican administrations. Out of the 25 states with the cheapest electricity, 20 were classified as “red,” four as “blue,” and one as politically mixed.
These patterns, the report suggests, demonstrate that electricity prices are strongly influenced by state-level choices about energy sources, infrastructure, and emissions policies. The report was produced in collaboration with Always on Energy Research and relied on comprehensive data from the Energy Information Administration and the Lawrence Berkeley National Laboratory.
Policy Decisions and Their Impact
The report highlights that several states—most of which are governed by Democrats—have introduced policies aimed at reducing reliance on coal and restructuring power grids to meet ambitious emissions targets. These decisions, the report argues, have contributed to higher electricity costs in those areas.
“Electricity prices are largely a result of state energy policies,” the IER report states. “States have the authority to determine which energy resources supply their grids, and those choices directly affect what consumers pay.” The report notes that 86% of the states with electricity costs above the national average are considered reliably Democratic, having supported the Democratic presidential nominee in the 2020 and 2024 elections.
