U.S. Electricity Prices Higher Under Biden Administration

Texas Leads the Way with a 208% Increase in Wholesale Prices

AUSTIN, TX (10/30/24) — Newly released research by the Energy Alliance, U.S. Electricity Prices Higher Under Biden Administration, found that average wholesale electric prices during the first three years of the Biden administration have increased by 72% over prices in the last three years of the Trump administration. Retail prices are also up during the same period.

Texas had the highest average wholesale price over the last three years at $117. It also had the highest three-year increase at 208%. California and New York followed with the next highest increases. All three states have heavily promoted and subsidized renewable energy.

“The reasons for the higher prices are not surprising,” said Bill Peacock, policy director of the Energy Alliance and author of the paper. “Just about anyone could have predicted that the Inflation Reduction Act and Biden’s war on American energy would lead to this.”

The IRA more than tripled the dollar amount of renewable subsidies. Annual subsidies are expected to average $25 billion though 2029, up from $8 billion prior to the bill’s passage.

The subsidies have led to wind and solar flooding the U.S. grid. Renewables (17% of generation) have now passed coal (15%) as a generation source and are fast closing in on nuclear (18%).

At the state level, renewable generation in Texas is forecast to increase by 58,654 megawatts through 2029 and make up 98.2% of new generation on the Texas grid over the next five years.

Another example is Ohio, with 12 new solar projects under construction totalling 2,542 megawatts of installed capacity and another 28 projects that have been approved.

“The growth of renewables is leading to problems with grid reliability,” said Peacock. “It is a well-known fact that the reliability value of renewable energy declines as its grid penetration increases.”

The Energy Alliance, a project of the Texas Business Coalition, aims to raise awareness of key energy market issues, focusing on reliability, affordability, and efficiency. The organization advocates for the elimination of all energy subsidies as a necessary step toward restoring a competitive and reliable electricity market in Texas and the nation.

More information and the full report can be viewed here.