Introduction
The ALEC Energy Affordability Report serves as a benchmark for policymakers by providing a consistent, state-by-state comparison of electricity prices alongside the policy frameworks that influence them. In addition to evaluating outcomes such as retail electricity prices, this report examines whether states have enacted policies consistent with the ALEC model Affordable, Reliable, and Clean Energy Security Act, which establishes clear principles related to domestic energy production, cost stability, grid reliability, and emissions standards.
By examining both outcomes and the underlying policy choices that shape energy markets, this report offers decision-makers a practical tool to assess how legislation and regulation affect affordability, reliability, and competitiveness across the states. Definitions
used throughout the report, including renewable portfolio standards, net metering, and cap-and-trade programs, represent distinct policy approaches that influence generation costs, utility investment decisions, and grid operations. These policies are not theoretical. Their impact is reflected in retail electricity prices paid by consumers and businesses.
This report also evaluates state-level gasoline and diesel prices to provide a broader view of energy affordability. While these fuel prices are not incorporated into the electricity rankings, they represent a critical component of household and commercial energy expenditures. Gasoline prices directly affect commuting costs and household transportation budgets, while diesel prices influence freight, agriculture, construction, and supply chain operations. By examining these fuels alongside electricity prices, the report offers a more complete picture of the total energy cost pressures facing consumers, businesses, and state economies.