A new energy policy plan pushed by Republicans in Congress would likely raise the cost of electricity for American households, with estimates suggesting an annual increase of over $33 billion by 2035. The plan, which has been dubbed the “One Big Beautiful Bill,” would repeal most of the clean energy provisions from the Inflation Reduction Act (IRA), a law passed in 2022 that provided financial incentives for renewable energy sources and zero-emission products.
Experts agree that this repeal would lead to increased reliance on fossil fuels, driving up power generation costs and subsequently raising household energy bills. According to Energy Innovation’s modeling, households could see an average increase of $250 per year by 2035, while The Rhodium Group estimates that prices could rise as high as $290 annually.
The plan also eliminates tax credits for electric vehicles and undoes the nation’s latest tailpipe standards, leading to increased demand for gasoline and higher fuel prices at the pump. However, the impact of this repeal on energy bills would vary depending on whether a state has a single utility or multiple competing providers.
While some states, such as those with deregulated markets like Texas and Pennsylvania, would see significant price spikes, others in regulated markets might experience less variation in their bills. The net result of this plan would be higher energy costs for households and reduced competitiveness for the US in the global market, potentially ceding manufacturing and AI development to China.
Experts warn that this repeal would have far-reaching implications for the country’s efforts to combat climate change and maintain its energy independence. As Robbie Orvis, senior director for modeling and analysis at Energy Innovation, noted, “The ironic thing is that what’s in the bill, the net results of it will be completely contradictory to what the administration’s stated policy priorities are and will cede a lot of the AI development and the manufacturing to China specifically.”
Source: https://www.alternet.org/gop-energy-bills