According to a new (April 2026) report from PowerLines, titled “Utility Spending is Rising: A Review of Utility Capital Expenditure Plans,” utility affordability remains a top issue for energy consumers across the U.S. as rising electricity demand and an aging grid coincide with increasing costs across the energy supply chain.

In a comprehensive review of 51 investor-owned utility earnings calls in recent months, PowerLines found that investor-owned utilities proposed to spend at least $1.4 trillion over the next five years (2026–2030) on capital expenditures (CapEx), a more than 21 percent increase over the $1.1 trillion over the most recent five-year period (2021-2025).

“Much of these CapEx costs could eventually be passed on to consumers, as utilities file rate increase requests that could result in higher utility bills,” said the report. “This spending comes at a time when utility bills are already rising.” PowerLines analysis has shown that utility bills have increased approximately 40 percent since 2021, with no signs of slowing down. In 2025, utilities requested $31 billion in rate increases. Most utilities expect high levels of capital spending to continue through 2030, a trend that promises to intensify growing rate pressures.

According to the report, utility affordability has become a major flashpoint across the political spectrum, a development that has caught the attention of utility investors. A 2025 PowerLines Poll, conducted by Ipsos, found that the majority of Americans (62 percent) have seen their electric and/or gas bills rise over the past year, while even more (73 percent) are concerned that their bills will rise further in the next year. “The specter of political pressure on regulators to keep rates low drove many investor questions toward the end of 2025, prompting frank responses from utility executives,” said the report.

These rate increases are not inevitable, however, according to the report. If managed effectively, utilities could leverage rising electricity demand to spread fixed costs over a larger customer base, lowering prices for all consumers.

“However, the existing utility regulatory system, which provides a financial incentive for capital spending, but not operational efficiency measures, stands in the way,” said the report. “State utility regulators approve capital investments and set the rate of return that utilities receive for them. These bodies are increasingly approving higher rates. Over the last five years, regulators have approved, on average, 64 percent of the dollar value of rate increase requests, a jump from 52 percent over the previous 20 years.”

The report added that modernizing an aging grid will require significant investment and spending. “However, lower-capital solutions focused on energy efficiency, demand-side solutions, and grid-enhancing technologies that squeeze more electricity out of existing grid infrastructure are often not properly incentivized,” said the report. “They must be prioritized in an affordability-constrained environment. Changing this reality will require policy action and strong regulatory enforcement from states across the country.”