3 Ways Trump Is Driving Electricity Bills Up

Electricity rates are set to skyrocket, fueled by the Trump administration’s war on cheaper clean energy and push for expensive fossil fuels.

A coal-fired power plant forced to stay open by Trump.
The Trump administration illegally ordered this coal-fired power plant in Washington State to stay open past retirement in December 2025. This is part of a broader policy to prop up coal that is driving up electricity costs. (Steven Baltakatei Sandoval / CC BY-SA 4.0)

Electricity bills are rising, and Trump is making it much worse.

For the last 20 years, electricity demand remained fairly flat, but now demand is surging, driven partly by artificial intelligence companies building data centers. Meanwhile, we are facing the unavoidable costs of modernizing our aging electricity system built decades ago and increasingly strained by extreme weather driven by climate change.

Clean energy is the cheapest and fastest way to meet rising electricity demand. But the Trump administration is taking a much more expensive, much more polluting approach by propping up fossil fuels.

Reason #1: Trump is using AI as an excuse to push fossil fuels

The Trump administration is using AI and data centers’ projected energy demands as an excuse to gut environmental protections and force coal plants to keep running. We need to upgrade our grid with clean energy and ensure tech companies pay their fair share instead of raising electricity rates.

Utilities are rushing to build new gas-fired power plants to serve massive data centers, which can often use as much power as a city. Your utility is paying up front for the immense costs of building those polluting power plants for the highly speculative AI industry. Generations of customers could be on the hook for paying off those balances, unless utilities and regulators implement important protections.

 

Reason #2: Trump is forcing aging, expensive coal plants to keep operating past their planned retirements

We are at the point where it would be cheaper to install local solar and wind power rather than continue running 99% of coal-fired power plants, according to calculations from 2021.

But Trump’s Department of Energy is issuing sham “emergency” orders to override decisions by power plant owners and state utility regulators to retire uneconomic fossil-fuel power plants. The administration has issued successive 90-day emergency orders to keep five coal-fired plants open that were due to retire in 2025.

Earthjustice is suing to prevent this abuse of emergency powers. If the Trump administration gets its way, American households will be paying for this extremely costly decision in their electricity bills. Coal is not only the most polluting and carbon-intensive source of electricity, it’s also expensive  

In March, the largest Michigan utility said complying with DOE’s orders for the J.H. Campbell Power Plant cost $135 million from the end of May 2025 through December 2025, to be paid by electricity customers across 11 states. In Washington state, the cost of the initial 90-day order for the Centralia coal power plant was $20 million.

Reason #3: Clean energy is cheaper than coal, but Trump is canceling clean energy projects

The costs of renewable energy like solar and wind paired with batteries have been falling for years as the technologies matured. Now, these forms of clean energy are among the cheapest ways to generate reliable electricity.

This should be great news for everyone who pays an electricity bill each month. But the Trump administration has been cancelling funding and blocking permits for solar and wind projects and transmission work that is needed to bring clean, cheap power to the grid.

In December, a judge struck down a Trump ban on new federal permits for wind energy, siding with Earthjustice and our partners. Federal judges have now ruled against five of the Trump administration’s attempts to halt construction on wind farms along the East Coast.

The president is playing politics — supporting his fossil fuel agenda rather than allowing for fair competition that would benefit all Americans.

Earthjustice attorneys are fighting efforts before the Federal Energy Regulatory Commission to fast-track expensive new gas plants over clean energy projects like wind, solar, and batteries that have been waiting years to connect to the grid. Our attorneys also appear before public utility commissions across the country to make the case for clean energy and successfully argue against utilities’ proposed rate hikes for dirty, polluting power plants.


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Originally published on November 5, 2025.

Earthjustice’s Clean Energy Program uses the power of the law and the strength of partnership to accelerate the transition to 100% clean energy.