Electricity prices are climbing more than twice as fast as inflation

Utility incentives and quasi-monopolies

• Several comments stress that regulated utilities are unlike normal businesses: with cost-plus or allowed-return regulation, they can earn more by increasing their cost base, not by cutting costs.
• A long subthread compares this to ACA “medical loss ratio” rules for health insurers, arguing both sectors can end up structurally incentivized toward higher underlying costs.
• Some argue electricity “deregulation” (choice of generator but single distributor) hasn’t delivered cheaper prices in practice, only theoretical pressure.

Solar, batteries, and going off-grid

• Many see higher prices as a push toward rooftop solar plus batteries, but note: high interconnect fees, low export compensation, and complex tariffs can kill the economics.
• California and Arizona examples: high fixed “solar” or grid-connection fees, fears of retroactive charges, and building codes that may effectively require grid connection.
• Others argue fixed monthly charges for grid access are justified: the ability to draw large power at any time has real cost; solar users shouldn’t treat the grid as a free battery.
• Debate over off-grid living: some say it should be legal and feasible; others highlight safety codes and local rules that can deem non-grid homes “uninhabitable.”

Electrification, appliances, and regressive impacts

• Thread revisits gas vs electric stoves and heat: several point out stoves are a minor load; heating and hot water dominate.
• Heat pumps are claimed to be cheaper to run in many regions, but in very high-rate territories (e.g., PG&E) gas can still win.
• Multiple commenters warn that rooftop-solar and home-battery subsidies disproportionately benefit owners with capital, shifting grid costs onto renters and lower-income households.

AI, data centers, and demand growth

• Prior HN threads are cited linking AI/data centers to surging electricity demand and utility rate plans.
• Some see an emerging “energy affordability crisis” where AI/data center loads drive expensive new capacity that will be socialized across all ratepayers.
• Others argue grids should already have been planning for big increases from EVs and heat electrification; if supply is hard to expand, inelastic supply plus rising demand naturally raises prices.

Public vs private ownership, grid costs, and policy

• Multiple anecdotes: municipal or co-op utilities often have lower rates and fewer outages than investor-owned utilities.
• Strong debate over whether public operation is generally better or just differently flawed; examples from US and Europe are cited both ways.
• Many bills are now majority “delivery”/grid fees, not energy itself. Some link rising grid charges to renewables integration, wildfire mitigation, and decades of underinvestment.