US Utilities: Midterm Elections Could Shift Regulatory Outlook
How Will the November Elections Impact Utilities Regulation in the US?
Regulatory decisions shape utility earnings, and this year, the November 3 elections could reshape who makes those decisions. Since the start of 2025, average US residential electricity prices have climbed nearly twice as fast as overall inflation, and regulators—not utilities—are facing the brunt of public scrutiny.
Governors appoint utilities commissioners in most US states, so the outcome of the 28 gubernatorial races on November 3 could directly reshape rate-setting policy through new commission appointments. Nine additional states will elect at least one utilities commissioner outright, placing regulatory direction squarely in voters' hands.
Data center growth adds another layer of complexity: some states have left customer bill impacts and utility earnings growth exposed to political outcomes. For investors, understanding which states face the most regulatory risk is essential to assessing utility valuations heading into 2027.
