Your electricity bill rose 40% while utility CEO pay rose 47% – now, voters are taking it to the ballot boxes – Image for illustrative purposes only (Image credits: Pixabay)
Families nationwide struggled last year to manage electricity bills that jumped 40% since 2021, forcing tough choices between power and other essentials.[1][2] Utility companies disconnected service to millions amid mounting arrears, while their chief executives pocketed a record $626 million in 2025 compensation alone.[3] This growing imbalance has spurred voters and lawmakers to pursue reforms through ballot initiatives and legislation, aiming to shift more costs away from everyday customers.
Executive Pay Reaches New Heights
Investor-owned utilities disbursed $626 million to their top executives in 2025, marking a 16% increase from the previous year.[3] Across 50 major electric and gas companies, plus the Tennessee Valley Authority, the average CEO compensation hit $12.3 million. Since 2017, total payouts to these leaders exceeded $5.2 billion, with average pay rising 47% – well ahead of 31% inflation and 38% wage growth over the same period.[3]
Twenty-seven CEOs received raises topping $1 million. American Electric Power’s Bill Fehrman led with $36.6 million, followed by Southern Company’s Chris Womack at $28.2 million and NextEra Energy’s John Ketchum at $24.2 million.[3] Much of this pay linked to performance metrics favoring shareholders, such as return on equity, where higher customer charges directly boosted bonuses.
Customers Bear the Brunt of Rate Hikes
Residential electricity prices rose more than 7% from February 2025 to February 2026, surpassing inflation rates.[1] Over a longer stretch since 2021, costs climbed 40% on average, coinciding with utilities posting net incomes over $200 billion from 2021 to 2024 and profit margins reaching 14.6% in 2025.[3] Regulators approved a record $31 billion in rate increases in 2025, impacting 81 million customers.[4]…