Why Red States Are More Affordable Than Blue States
21st January 2026
Affordability has become the latest mantra for Democrats as they gear up for midterm elections. Yet, blue states lead the nation in driving up the cost of basic essentials like electricity and water, new studies say.
A recent report by the Institute for Energy Research, titled “Blue States, High Rates,” found that while average electricity prices across America increased by nearly 40% since 2021, Americans in left-leaning states paid significantly more than their conservative compatriots.
The report states that the vast majority of states with electricity prices above the national average are Democrat-led states. By contrast, red states comprised eight of the 10 states with the lowest electricity prices.
“Because of the Federal Power Act, the states have most of the discretion in terms of how they want to structure their electricity markets,” Tom Pyle, president of the Institute for Energy Research and one of the study’s authors, told The Daily Signal. “We have seen over the past 10-15 years that typically blue states have high rates and red states, especially in the south and southeast, have much more reliable and affordable electricity for their ratepayers.”