Energy Costs Surge: Households Grapple with Sharp Rise in Gas and Electricity Prices
This analysis is based on a report originally published by Utility Dive. For continuous coverage of the energy sector, subscribe to the free Utility Dive newsletter.
American households felt the pinch of rising energy costs this past November, according to the latest data from the U.S. Energy Information Administration (EIA). The residential price of electricity increased by 5.5% compared to November 2024, while the cost of natural gas delivered a more severe shock, skyrocketing by 88.5% year-over-year.
These figures represent a national average across all sectors. While residential consumers faced the smallest percentage increase, the commercial, industrial, and transportation sectors absorbed even steeper hikes, with transportation leading at a 10.3% rise. The surge in natural gas prices is particularly stark, coming off a record-low annual average in 2024. EIA notes the 2025 spot price average has climbed 56%, signaling a dramatic reversal in the market.
The report paints a complex picture of the U.S. energy landscape. Despite higher prices, overall electricity demand, as measured by daily peak levels, remained at or near annual lows for the period ending November 2025. Florida, for instance, saw peak demand levels among its lowest in twelve months. Conversely, net electricity generation nationwide rose 3.9%, with all regions except Florida producing more power. Florida's generation dropped 4.7%, attributed to milder temperatures in November 2025 compared to an unusually warm November 2024.
Weather played a key role. Thirty-one states and the District of Columbia experienced colder temperatures and more heating degree days in November 2025, likely driving up heating demand. The fuel mix for generation also shifted notably: most regions outside the Northeast and Texas increased coal-fired generation, while natural gas generation declined everywhere except the Northeast. Nuclear output grew by 3.1%, and generation from renewables like wind and solar saw year-over-year increases in every region.
"The data highlights the volatile interplay between commodity markets, weather, and our evolving generation fleet," said energy analyst Michael Chen. "The sharp pivot back to coal in many areas is a clear, if temporary, response to high natural gas prices."
Retail electricity sales to end customers increased modestly by 1.1%, led by the residential and commercial sectors. However, the increase was uneven geographically. Rhode Island led with a 14.5% jump in sales, followed by Ohio and Nebraska. Eighteen states, however, actually recorded a decrease in sales volume.
Reader Reactions:
Sarah J., Homeowner in Michigan: "This is crushing. My gas bill has nearly doubled. It's a hidden tax on staying warm through the winter. When does it end?"
David L., Policy Researcher: "The regional disparities in sales and generation are fascinating. It underscores how localized energy policies and weather events create a patchwork of experiences, complicating a national response."
Rebecca Torres, Small Business Owner: "It's absolute profiteering. We're told to switch to gas, then get hammered by these prices. Meanwhile, utilities post record profits. This isn't an 'energy transition'; it's a wealth transfer from families to shareholders."
Professor Alan Briggs, Economics Dept.: "The 88.5% gas price increase is the headline, but the broader story is system resilience. The diversified generation response—more coal, nuclear, and renewables—prevented the price shock from causing wider reliability issues."