Households and businesses see a significant portion of their monthly electricity payments converted into investor profits rather than service costs, according to the authors of the newly released report. Last year, electric utilities kept approximately 15 cents of every dollar collected, meaning a customer with a $200 monthly bill effectively paid about $30 directly into corporate profits.
The report states, “Electric utilities kept about 15 cents of every dollar they collected as profit last year.” It further notes that “this profit share has been rising, up from around 13% on average between 2021 and 2024.”
This means that a large slice of every payment is set aside specifically to reward the shareholders who own the utility company, rather than paying for the actual generation of power or maintenance of the electrical grid. While these companies are allowed to make a profit to attract investors, these margins are often much higher than what companies in other sectors typically earn, placing an extra financial burden on households.
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.
