Blue states have embraced green energy mandates, and their ratepayers are seeing red.
According to recently released data, the bluer your state politics are, the higher your electric bills are likely to be. And critics of green initiatives such as net-zero emissions policies, popular among Democratic politicians, say it’s not a coincidence.
Excluding Alaska and Hawaii, 12 of the 14 states with power prices above the national average voted Democratic in the 2020 and 2024 presidential elections. At the other end of the spectrum, nine of the 10 states with the lowest electricity prices voted Republican.
“Electricity rates and affordability are at the top of headlines today,” said Thomas J. Pyle, the president of the Institute for Energy Research. “Debates about affordability focus on a wide range of factors, but lost in the conversation is the wide variance in electricity prices we see across the country. Those differences come down to decisions made at the state level.”
One state-level decision that appears to play a role is embracing “net zero” policies on carbon emissions. Twelve of those 14 high-cost states have adopted goals for 100 percent clean or carbon-free electricity, according to the Clean Energy States Alliance. Nine have also adopted explicit economywide net-zero or carbon-neutrality targets.
Developed by IER and Always On Energy Research, the “Blue States, High Rates” web tool examines utility policies, climate mandates and regulatory structures across all 50 states and compares them with electricity prices. The index specifically tracks policies such as renewable portfolio standards, cap-and-trade programs, net-metering requirements and utility net-zero goals. According to its authors, states aggressively pursuing carbon-free mandates have generally experienced higher electricity prices.
Five states with the highest electricity prices — Hawaii, California, Rhode Island, Connecticut and Massachusetts — have adopted 100 percent clean-energy or economywide net-zero policies.
IER and AOER argue that the specific policies used to pursue those goals — including renewable-energy mandates, carbon pricing, restrictions on natural gas infrastructure and the early retirement of conventional power plants — add costs that are ultimately passed on to customers.
“Blue States, High Rates captures what we’ve been saying for years: Bad energy policy leads to higher electricity rates,” said Amy Cooke, the president and CEO of Always On Energy Research. “The bottom line is simple: affordable, reliable power is a policy choice.”
In California, where state law mandates carbon neutrality and 100 percent carbon-free electricity by 2045, average all-sector electricity prices rose from 16.6 cents per kilowatt-hour in 2018 to 27.6 cents in 2025.
New York’s mandate for a zero-emissions grid by 2040 coincided with an increase from 14.8 cents to 21.6 cents per kilowatt-hour over the period.
Clean-energy advocates and regulators argue that the costs are necessary investments in grid modernization, cleaner air and long-term resilience against climate change. Opponents contend that the climate-focused push overlooks the immediate financial burden on ratepayers.
In Mississippi, where electricity prices are 15 percent below the national average, supporters of the state’s approach say avoiding mandates is vital to economic stability — particularly as states compete for energy-intensive investments such as data centers and artificial intelligence infrastructure.
“I think for the most part that it is the things that we are not doing in Mississippi that are keeping our rates low,” said Starla Brown, the Mississippi state director for Americans for Prosperity. “If we do not have sound energy policies that keep the rates low, then we are impacted economically in an adverse way. At the end of the day, let the free market work, let competition do its thing, and keep politicians out of picking winners and losers.”
Neighboring Louisiana offers another example of how access to conventional energy can affect prices. Although the state has an economywide net-zero goal issued by former Gov. John Bel Edwards, a Democrat, Louisiana has not implemented that goal through electricity-generation mandates. Nearly three-quarters of its electricity is generated using natural gas, and its prices are among the lowest in the country.
Scott Simon, director for AFP Louisiana, argues that reducing regulatory barriers helps keep electricity affordable. “Whenever you get rid of the mandate world and get rid of the restriction and just speed things up and reduce the red tape … it’s just standard knowledge that the price is going to be cheaper,” Simon said.
According to Simon, that price predictability is reshaping the state’s economy. Since 2024, Louisiana has secured $150 billion in announced capital investments, much of it connected to energy-intensive AI infrastructure projects seeking a stable power supply.
“With that comes the cost of energy and the amount of energy it takes for those businesses to operate,” Simon said. “They just want predictability. Stability is key — and stability is not just for a short period of time. Stability is long term.”
The policy debates can be data-heavy and filled with technical terminology, but Alex Stevens, IER’s manager of policy and communications, said consumers should pay attention — particularly when examining their utility bills.
“Educate yourself on exactly how your electricity prices are being set in your state,” Stevens said. “Learn about how your utility structure, learn about, you know, the policies that you’ve adopted, what the sort of resource mix is … and why are we paying what we’re paying?”
Chris Woodward writes about industry and technology for InsideSources.com.
