(Bloomberg) —
Democrats campaigning on a promise to lower utility bills swept key elections in New Jersey, Virginia and Georgia this year, and all signs suggest skyrocketing electricity rates will be pivotal in US congressional midterms next year.
The New Jersey and Virginia governors-elect ran on affordability. Both states are part of the largest US electric grid — operated by PJM Interconnection LLC — which has seen power costs surge to record highs for two straight years. Much of that spike is due to demand from data centers, with Virginia being home to the nation’s biggest artificial intelligence build-out.
Meanwhile, in Georgia, a surprise vote ousted two Republicans from the state commission that regulates utilities, replacing them with Democrats for the first time since 2000.
While Americans have long been sensitive to the price of gasoline — and, more recently, eggs — power bills are newly a national issue, thanks to supercharged demand from artificial intelligence, new factories and electric vehicles. Nationally, electricity costs have risen 5.1% for the twelve months ended September 2025 and are holding near a record high, according to government data.
“Affordability is going to be a key political issue,” said Paul Patterson, a utility analyst at Glenrock Associates. “There’s been a lot of rate increases over a short period and people don’t like it.”
Mikie Sherrill, a US representative who is now governor-elect of New Jersey, said she will “declare a state of emergency on utility costs and freeze your utility rates.” Fellow Democrat Abigail Spanberger promised in the Virginia race that she’d ensure data centers don’t drive up bills.
The Republican losses in Georgia prompted Jefferies to downgrade utility giant Southern Co., owner of Georgia’s biggest utility, to a “hold” from “buy” on Wednesday, saying the Republican losses increased the company’s risk profile. Southern fell as much as 2.4% on Wednesday.
“There’s obviously a lot more concern that there are less business-constructive regulators on the board now,” said Tim Winter, a portfolio manager at Gabelli Funds who covers the utility sector. “You’re paying a little more attention than you were yesterday.”
Looking ahead, Michigan, Ohio, New Jersey and Pennsylvania are all states in PJM’s territory that are facing tight Senate or House races. In those states, some 25% of residents can’t afford to pay their utility bills, according to a study by Utility Rates.
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