ALEC’s 4th Annual Energy Affordability Report Exposes the High Cost of Government Overreach

Arlington, VA – The American Legislative Exchange Council (ALEC) is proud to release its 4th Annual Energy Affordability Report, a comprehensive analysis of energy prices across the United States. The analysis underscores the direct link between high energy costs and excessive government intervention, revealing how burdensome policies are driving up prices for hardworking Americans.

Read the report here.

“Energy costs are a year-round concern—whether you’re heating your home in the winter or keeping it cool in the summer,” said ALEC Energy, Environment, and Agriculture Task Force Director Jake Morabito. “States that embrace free-market solutions instead of overregulation provide a more affordable and reliable energy landscape for everyone.”

The report examines key factors influencing electricity prices, including how energy is generated, delivered, and regulated. It also compares pricing across states with and without restrictive energy policies such as Renewable Portfolio Standards, Cap-and-Trade programs like the Regional Greenhouse Gas Initiative, and State-Mandated Net Metering.

“As Americans face growing threats to energy security, it is those misguided government policies that will continue to impose harsh financial realities on taxpayers,” Morabito warned.

It should be noted that Hawaii and Alaska (ranked 45th overall) face higher electricity costs due to their geographic isolation, which limits access to shared infrastructure such as transmission lines and the ability to import or export electricity across state lines—key factors that help keep down the cost of rates in the lower 48.

See how all the states rank here.

“States play a pivotal role in unlocking American energy dominance, but misguided policies can drive up prices and lead to unreliability at home,” said Michigan Rep. Phil Green. “ALEC’s latest Energy Affordability Report demonstrates how burdensome mandates, such as renewable portfolio standards and government-imposed net metering, directly lead to higher bills for businesses and families. Instead of picking winners and losers when it comes to energy production, states like Michigan should embrace free-market solutions that promote affordability and innovation.”

As families and businesses grapple with rising costs, states that prioritize market-driven energy solutions will not only lower electricity prices but also strengthen long-term energy security. A regulatory approach that encourages innovation and competition will lead to more efficient, affordable, and sustainable outcomes.

“The American people are looking to the new administration to lower costs across the board—especially for energy,” said ALEC CEO Lisa B. Nelson. “This report serves as an invaluable resource for policymakers committed to reducing energy expenses and ushering in a new era of prosperity.”