Trump's promise of a 50% reduction in electricity costs, however, contrasts with a reality where electricity prices are doubling more quickly than inflation rates.

Soaring electricity prices, contrary to Trump's pledge, are climbing faster than the general inflation rate by a factor of two.

In the United States, the energy sector has been undergoing significant changes under the Trump administration. One of the most notable shifts has been in the realm of renewable energy.

The administration's decision to reduce government subsidies for wind and solar energy projects, as outlined in the "One Big Beautiful Bill Act," has had a profound impact. By ending these incentives years earlier than planned, the move increased costs and regulatory hurdles for developers, effectively slowing down the expansion of renewable energy in the U.S. This could potentially lead to challenges with prices and reliability down the line.

During his campaign, President Donald Trump promised to cut electricity and energy prices by half within 12 to 18 months. However, as of the end of July, electricity prices had surged 5.5% over the prior 12 months.

The administration's stance on coal power plants has also been noteworthy. Plans to retire some coal power plants have been scrapped, which could contribute to continued reliance on fossil fuels.

Meanwhile, the cost of natural gas for power generation is projected to rise by another 17% next year, according to the EIA. Natural gas is the leading source of US electricity generation, making up about 40% of the total. This increase could further exacerbate the rising electricity prices.

In some states, the impact of these changes has been more pronounced. For instance, retail electricity prices to residential customers are projected to increase by 4% this year and then 6% next year. New England, including Rhode Island, Massachusetts, and Connecticut, already suffers from among the highest electricity costs in the nation. Residential electricity prices spiked by more than the national average in Maine (26%), New Jersey (25%), Wyoming (15%), Utah (15%), and Illinois (14%).

The energy sector in the U.S. is also grappling with aging infrastructure, which requires costly repairs and upgrades. In California, utilities have been forced to invest in expensive upgrades to lower the risk of fires.

Data center energy usage has tripled over the past decade, and it is projected to double or triple by 2028. AI prompts can take up to 10 times more energy to complete than a typical Google search, adding to the energy consumption.

The financial burden of these rising energy costs is not insignificant. Americans were collectively sitting on about $24 billion in outstanding utility debt as of March. One in six US households were behind on their energy bills.

Despite these challenges, there are some positive developments. Average residential power prices have fallen in a handful of states, including North Carolina (-1%) and Hawaii (-4%). However, the overall trend points towards an increase in electricity prices, a shift that could have far-reaching implications for American households and businesses.

The White House recently halted construction on a nearly finished wind farm off the coast of Rhode Island, further clouding the future of renewable energy expansion in the U.S. The administration's policies and decisions continue to shape the energy landscape, with the full impact yet to be seen.