Non-profit utilities generally offer more affordable electricity compared to those owned by private investors because they do not have to generate earnings for shareholders. According to the authors of the newly released report, these organizations operate under a different business model that prioritizes service over financial gain.
The report states that “About 30 percent of the country’s electricity is sold by non-profit utilities, most of which are either cooperatives or municipally owned.” It further notes, “Those utilities do not collect profit, and typically charge lower rates.”
Because these utilities are owned by the local community or the customers themselves, they only need to cover the actual costs of building and maintaining the power system. Unlike private companies that must set prices high enough to pay out billions of dollars to investors, non-profits return any extra money to the system or keep rates low, making them a cheaper option for the average household.
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.
