California currently has the second-highest electricity prices in the United States, according to a report by the Institute for Energy Research and Always On Energy Research. They claim that state energy policies are contributing to higher costs for consumers. A recent interactive website, Blue States, High Rates, details findings across all 50 states, showing California’s prices at 27.63 cents per kilowatt-hour in 2025, more than double the national average of 13.63 cents.
The analysis included multiple criteria impacting electricity pricing, such as renewable portfolio standards, rooftop solar compensation, and cap-and-trade programs. California has embraced various measures criticized by the authors, such as a mandate for 100% carbon-free electricity by 2045.
Despite these criticisms, California policymakers defend their clean energy initiatives, citing significant reductions in air pollution and leading adoption rates of electric vehicles. The state has seen a dramatic rise in utility-scale solar generation, surpassing natural gas in energy production.
In response to the report, a spokesperson for Governor Gavin Newsom labeled the analysis as driven by fossil fuel interests. This response aligns with ongoing debates about the impact of energy policies on costs, especially as average utility bills have risen significantly for many Californians in recent years.
