U.S. residential electricity prices have climbed almost 10% since January, far outpacing the 2.7% rise in the overall consumer price index, according to Energy Information Administration and Bureau of Labor Statistics data. The cost of power is now 17.47 cents per kilowatt-hour, up from 15.95 cents at the start of the year, marking a 5.5% increase over the past 12 months. Analysts attribute the surge to a combination of policy changes and rising demand. New tariffs on steel, aluminum and imported electricity have raised grid construction and operating costs, while the repeal of federal tax credits for solar and wind has forced utilities to rely more on costlier fossil-fuel generation. At the same time, a boom in energy-hungry data centers supporting artificial-intelligence applications is tightening supply. Climate think tank Energy Innovation estimates the energy provisions in the One Big Beautiful Bill Act, signed by President Donald Trump on July 4, will drive wholesale electricity prices 74% higher over the next decade, translating into an additional $170 a year for the average household by 2035. The Energy Information Administration projects that, for the first time next year, data centers and other commercial users will consume more power than residential customers. Administration officials dispute that cuts to renewable subsidies are behind the price spike, arguing instead that earlier clean-energy programs distorted the market. With temperatures rising and summer demand peaking, consumer advocates warn that higher utility bills will hit fixed-income households the hardest unless relief measures are introduced.