States that have independent consumer advocates are more likely to see lower household electricity bills because these representatives push for fairer limits on utility profits. According to the authors of the newly released report, having a dedicated voice for the public helps counteract the influence of powerful utility companies during the legal processes that determine energy prices.
“Research has found that states with independent consumer advocates in utility rate proceedings authorized meaningfully lower returns on equity by almost half a percentage point on average across more than 1,600 rate cases studied over nearly three decades.” The report further notes that utility companies arrive at these meetings with “large legal and financial teams,” while “residential customers rarely have equivalent representation without a funded advocate.”
When power companies want to raise their rates, they must present their financial case to government regulators who decide how much profit the company is allowed to keep. In these negotiations, utilities hire expensive experts to argue for higher returns, which ultimately increases what families pay each month. An independent consumer advocate acts as a professional defender for the public, using data to challenge those high profit requests and ensure that households are not overcharged.
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.
