State-level energy policies play a major role in determining electricity costs, and states led by Democrats tend to have higher power prices than those governed by Republicans, according to a new report from the Institute for Energy Research (IER). Titled “Blue States, High Rates. Electricity Prices: Elections Have Consequences,” the report analyzes average electricity costs per kilowatt-hour and was first shared with the Daily Caller News Foundation. The findings come as Democrats seek to center their 2026 midterm messaging on affordability for working-class Americans.
According to the analysis, nine of the 10 states with the highest electricity rates are governed by Democrats, while states with lower prices are predominantly Republican-led. IER found that 20 of the 25 states with the cheapest electricity are red states, with only four blue states and one politically mixed state included. The report attributes the price gap to policy decisions affecting energy production, regulation, and power supply, including emissions targets and restrictions on traditional energy sources.
IER President Tom Pyle argued that blaming President Donald Trump for high electricity prices is misguided, contending that Democratic-led states have driven costs higher through policy choices. The report cites data from the Energy Information Administration and Lawrence Berkeley National Laboratory, concluding that mandates for renewable or carbon-free energy, early plant retirements, and limits on natural gas have increased costs. It argues that high electricity prices are a policy choice, not an inevitability.