Grid delivery now costs more than making the power itself

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US utility distribution spending rose 6 percent a year since 2014 four times the old pace.
That distribution growth makes up over 30 percent of the national average electricity rate increase.
Transmission congestion alone hit nearly 1.8 billion dollars in just two months in the biggest US grid.
Data centers and new demand force huge new grid upgrades that lag years behind.
By mid century delivery costs are projected near half the total electricity price in some outlooks.
Existing plants get used harder while new wires and substations eat the capital.

PJM capacity prices jumped over 60 percent partly from data center load in the latest auction.
Maryland ratepayers face billions more in transmission costs through 2035 from load growth.

Lawrence Berkeley National Lab — May 2026
Electric utility distribution costs scoping study on trends and drivers
https://emp.lbl.gov/publications/electric-utility-distribution-costs

Bloomberg — July 14 2026
Largest US grid misses power supply goal amid AI surge capacity costs jump
https://www.bloomberg.com/news/articles/2026-07-14/largest-us-grid-misses-power-supply-goal-amid-rampant-ai-surge

 

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