Long-term debt interest and shareholder returns significantly drive up the total price of utility infrastructure because costs are paid back over decades rather than all at once. According to the authors of the newly released report, this process functions like a home mortgage, where interest payments over 30 years can result in consumers paying more than double the original construction cost.
The report notes that for a major project, “Add in debt interest, and total customer payments for that single asset approach $2.2 billion. A $1 billion investment, paid for more than twice over.” It further explains that “Year after year, customers are paying a return on a declining but not-zero balance, until the plant is fully paid off.”
When a power company builds something new, they do not charge customers for the total cost immediately. Instead, they spread the repayment over 30 years or more, requiring customers to pay back the original construction cost plus ongoing interest to lenders and profits to shareholders. Because these additional payments continue for decades, the final amount households pay through their monthly bills is often twice as high as the actual cost of the equipment or construction.
The Energy & Policy Institute released its report “Paying for Their Profits: How Ratepayers Foot the Bill for Soaring Utility Profits” in March 2026. Authored by Daniel Tait, Sue Sturgis, and Shelby Green, the analysis tracks financial data from over 100 investor-owned utilities to reveal the significant role corporate returns play in driving up household electricity costs.
