Utility companies often see much higher profit margins than businesses in most other parts of the American economy, according to the authors of the newly released report. While many industries typically see profits in the single digits, the investigation found that major electric providers are consistently retaining a larger portion of their revenue as earnings for investors.
“Profit margins of this scale are high relative to most sectors of the U.S. economy,” the report states. It further notes that “Companies in most industries typically report net profit margins in the single digits, making the margins reported by many electric utilities comparatively large.”
In simple terms, this means that for every dollar a household pays on their monthly power bill, a significant chunk—averaging about 13 cents—goes straight to the company’s owners as profit rather than being spent on maintaining wires or producing electricity. While a typical business might keep less than 10 cents of every dollar they take in, these utility companies are often keeping much more, even as the total price of electricity for families continues to climb.
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.
