Washington, D.C., residents are entering the new year facing higher electricity and natural gas bills as fresh data show the District squarely caught in a nationwide surge in utility costs, with increases already in effect and additional hikes looming.
An updated analysis from the Center for American Progress finds that Washington, D.C., is among 49 states where electricity and natural gas customers are facing higher rates or proposed increases through at least 2027.
In the District, electric bills rose earlier this year by an average of $20.81 per month, an increase of nearly 18%, while natural gas customers are projected to see an additional monthly increase of about $15.33 beginning in 2026, or roughly 17.6%.
The report estimates that more than 107 million electricity customers and 46 million natural gas customers nationwide are affected, with combined rate hikes expected to add nearly $90 billion to customer bills between 2025 and 2028.
For District households, the impact is already being felt most sharply during the winter heating season. Washington Gas customers in the city saw their average monthly bill climb by nearly 13% this winter, an increase of about $11 per month. Utility filings show the increase is driven largely by pipeline replacement projects, higher maintenance costs, and inflation-related pressures.
Energy analysts say Washington’s rising bills reflect broader national trends. Electricity prices across the country are now rising at roughly double the pace of inflation after a decade of relative stability. Natural gas prices have also climbed sharply, driven by global market volatility and growing U.S. exports.
“When supply is scarce, then prices go up,” said Rob Gramlich, president of the D.C.-based energy consultancy Grid Strategies, pointing to a sharp rebound in electricity demand following the pandemic.
That demand is being fueled in part by the rapid expansion of artificial intelligence and data centers.
“AI data centers are much more power intensive. An AI data center would be up to 10 times more power intensive,” said Norman Bashir, a fellow at MIT’s Climate and Sustainability Consortium.
The Center for American Progress analysis ties rising utility costs not only to demand and aging infrastructure, but also to federal policy decisions.
“The surge in energy demand, coupled with Trump administration actions and rising natural gas prices, means the surge in energy demand will continue to increase costs for Americans,” the report states.
Clean energy advocates argue that slowing the deployment of lower-cost renewable power is compounding the burden on ratepayers.
“By slowing clean energy deployment, the administration is directly fueling cost increases,” said Jason Grumet, CEO of the American Clean Power Association.
Bob Keefe, executive director of the environmental policy firm E2, also weighed in.
“Unfortunately, the president and Congress are making it harder for Americans to have access to the cheapest, cleanest, quickest to deploy power there is,” Keefe said.
The administration has defended its approach as necessary to maintain reliability.
“If we are going to keep the lights on, win the AI race, and keep electricity prices from skyrocketing, the United States must unleash American energy,” U.S. Secretary of Energy Chris Wright told reporters when speaking about the nation’s energy supply and grid stability.
In D.C., consumer advocates warn that continued increases will fall hardest on seniors and low-income residents already strained by housing, food, and transportation costs. During recent hearings before the D.C. Public Service Commission, residents said rising utility bills are forcing families to make difficult choices between heat, rent, and groceries.
“This is going to hit all of us very noticeably,” said Petworth resident Charles Spring during a recent public hearing. “It comes at a time when other prices are going up, and many people are losing their jobs. This is not a time to be maximizing profits.”