U.S. Electricity Prices Are Surging After Years of Green Energy Policies, and Secretary Wright Is Getting a Handle

U.S. Electricity Prices Are Surging After Years of Green Energy Policies, and Secretary Wright Is Getting a Handle - Created by Grok on X
U.S. Electricity Prices Are Surging After Years of Green Energy Policies, and Secretary Wright Is Getting a Handle - Created by Grok on X

U.S. electricity prices have been climbing at an alarming rate, outpacing inflation and squeezing households and businesses alike. Despite years of green energy policies promising affordability and reliability, the reality has been starkly different: aging infrastructure, surging demand, and policy missteps have driven costs higher. However, under the leadership of Energy Secretary Chris Wright, the Trump administration is taking bold steps to reverse this trend by prioritizing reliable, affordable energy sources like coal, oil, and natural gas.

Through a series of executive actions and policy shifts, the administration is working to stabilize the grid, boost domestic energy production, and deliver relief to consumers.

The Surge in Electricity Prices: A Green Policy Hangover

According to the U.S. Energy Information Administration (EIA), retail electricity prices have risen faster than inflation since 2022, with a 4.5% increase over the past year, nearly double the rate of general inflation. This trend is projected to continue through 2026, driven by a combination of factors, including supply chain disruptions from the COVID-19 pandemic, sanctions on Russian energy following the 2022 invasion of Ukraine, and increased utility investments to upgrade aging infrastructure. The rapid growth in electricity demand, particularly from energy-intensive data centers powering artificial intelligence, has further strained the grid, with data center consumption expected to rise from 4.4% of U.S. electricity in 2023 to 12% by 2028.

The chart below compares California’s kWh costs to the total US costs, and this pattern is observed across the U.S. The enforcement of green energy policies in states results in higher energy prices for consumers.

California vs US kWh electricity prices -Source Sandstone Asset Management
California vs US kWh electricity prices -Source Sandstone Asset Management

Years of green energy policies, heavily subsidized under previous administrations, have failed to deliver the promised cost reductions. Wind and solar, while contributing to the energy mix, have not provided the consistent baseload power needed to meet rising demand. As noted in a recent Energy News Beat article, fossil fuels—coal, oil, and natural gas—still account for 60% of U.S. electricity generation, underscoring their indispensable role. Policies favoring renewables have led to the premature retirement of coal and gas plants, reducing grid reliability and driving up prices as utilities scramble to meet demand with costlier alternatives.

Secretary Wright’s Response: A Fossil Fuel Renaissance

Energy Secretary Chris Wright, a former oilfield services executive, has taken a no-nonsense approach to addressing the crisis. Rejecting the narrative that renewables alone can power America’s future, Wright has championed policies to bolster fossil fuel production and maintain reliable energy sources. His strategy aligns with President Trump’s campaign promise to prioritize energy dominance and lower costs for consumers. Here are the key actions the administration has implemented:

  1. Extending Coal Plant Lifespans: The Trump administration has issued emergency orders to prevent the closure of coal-fired power plants, recognizing their critical role in providing baseload power. In April 2025, executive orders were signed to ease environmental regulations on coal plants and invoke the Defense Production Act to boost coal production. For example, a 63-year-old coal plant in Michigan and an oil- and gas-powered plant in Pennsylvania were ordered to remain open past their scheduled retirement dates, despite grid operators not requesting these interventions. Wright has argued that coal is essential for grid reliability, especially as data centers and industrial projects drive demand higher.
  2. Expanding Oil and Gas Leases: The administration has moved swiftly to increase domestic oil and gas production. On his first day in office, President Trump signed orders to promote drilling in Alaska, reverse protections established during the Biden era on Arctic lands, and lift restrictions on offshore oil and gas leasing. These actions aim to reduce reliance on foreign energy and stabilize fuel prices, which directly impact electricity costs. The administration has also approved multiple liquefied natural gas (LNG) export projects to counter global energy disruptions and bolster U.S. energy exports.
  3. Opening New Mines: To support coal and other critical minerals, the administration is streamlining permitting for mining on federal lands. Trump’s orders include classifying coal used in steel production as a “critical mineral,” potentially unlocking emergency powers to ramp up production. This move not only supports the coal industry but also ensures a steady supply of materials for energy infrastructure and manufacturing.
  4. Halting Renewable Subsidies and Projects: Wright has been vocal about the inefficiencies of wind and solar subsidies, calling them “insanity” for weakening the grid and raising costs. The administration has suspended new federal offshore wind leases and halted construction on projects like New York’s Empire Wind, citing rushed permitting. A sweeping domestic policy bill, recently passed by the Senate, aims to eliminate Biden-era tax credits for wind, solar, batteries, and geothermal power, redirecting focus to fossil fuels.
  5. Strengthening Grid Reliability: To address warnings of potential blackouts, the administration has issued emergency orders to maximize power plant output and expedite permitting for new transmission and pipeline projects. Wright has emphasized the need to modernize the grid to handle surging demand, particularly from AI data centers, which require consistent power that renewables struggle to provide.

The Impact: A Path to Stability or a Risky Bet?

The administration’s fossil fuel-centric approach has sparked both optimism and concern. Supporters argue that Wright’s policies will restore grid reliability and curb price spikes by leveraging America’s abundant coal, oil, and gas resources. The American Petroleum Institute and the National Mining Association have praised the moves, citing their potential to fortify U.S. energy security and create jobs. Natural gas, which fuels 43% of U.S. electricity, remains a cornerstone of the strategy, with new gas-fired capacity planned to meet AI-driven demand.

Critics, however, warn that doubling down on fossil fuels could backfire. The Center for American Progress estimates that repealing clean energy incentives could raise household electricity bills by $70 annually within five years, as reduced renewable capacity increases reliance on volatile natural gas prices. Analysts also note that coal plants are more costly to operate compared to wind and solar replacements, and their prolonged use may result in higher maintenance costs for consumers. Moreover, Trump’s tariffs on steel and equipment could raise the cost of building and maintaining energy infrastructure, further driving up prices.
Oilprice.com highlights the complexity of the issue, noting that while fossil fuels dominate, the rapid growth of data centers and industrial projects demands a diverse energy mix. The article highlights that electricity prices are rising not only due to policy but also due to structural challenges, such as grid limitations and underinvestment in transmission. Wright’s focus on fossil fuels may provide short-term relief, but long-term affordability will require striking a balance between reliability and cost-effective renewables and nuclear power.
Looking Ahead: Can Wright Deliver?

Secretary Wright’s aggressive push for fossil fuels marks a significant departure from the green energy policies of the past decade. By extending coal plant operations, expanding oil and gas leases, and opening new mines, the Trump administration is betting on traditional energy to stabilize prices and power America’s future. While these actions address immediate grid reliability concerns, they face challenges from market dynamics, rising equipment costs, and public demand for cleaner energy.

While Turley’s Law is applicable, I hope that it won’t always be on target. Turley’s Law has pointed out that the more money spent on wind, solar, and hydrogen, the more fossil fuels will be used. This has been on target for years.

As Energy News Beat has observed, fossil fuels remain the backbone of U.S. electricity generation, and their dominance is unlikely to wane soon. Wright’s policies aim to capitalize on this reality, but their success will depend on navigating economic uncertainties and delivering tangible cost reductions for consumers. For now, Americans are watching closely, hoping that the administration’s bold moves will light the way to a more affordable and reliable energy future.


Sources: U.S. Energy Information Administration, Oilprice.com, Energy News Beat, Reuters, The New York Times, CNBC, The Washington Post, Center for American Progress, and posts on X.