According to data from Kadoa, a significant price gap exists between investor-owned utilities and public utilities in the United States. In 2025, homes paid an average of 17.8 cents per kilowatt-hour at investor-owned utilities, compared to 14.5 cents at public utilities and 14.1 cents at cooperatives—a 23% premium for investor-owned providers.
The gap has widened substantially since 2020. Investor-owned utility prices rose 34% over the five-year period, outpacing both public utilities (up 19%) and cooperatives (up 19%). When adjusted for inflation of 24% over the same period, investor-owned prices rose 7.9% in real terms, while public and co-op prices actually fell 4.3%.
The source notes that much of this divergence occurred between 2020 and 2023 during the energy price spike, when investor-owned utilities raised prices by 25% compared to 11% at public utilities and cooperatives. Before and after that period, both types of utilities increased rates at roughly similar paces.
Pricing variations are substantial across utility types and geography. Among homes served by investor-owned utilities in 2025, 20.3% paid between 14-16 cents per kilowatt-hour, while 20% paid 16-18 cents. In contrast, 43.8% of public utility customers paid 12-14 cents per kilowatt-hour. The price gap persists even when accounting for regional differences: comparing investor-owned utilities to public and cooperative utilities in the same states shows a 17.3% premium, while investor-owned utilities charged 26.2% more than the most rural cooperatives.
Large investor-owned utilities showed particularly steep increases from 2020 to 2025. New York State Electric & Gas raised prices 97%, while San Diego Gas & Electric increased by 79% and Potomac Electric Power by 76%.
Regarding service reliability, investor-owned utilities experienced 120 outage minutes per year in 2025, compared to 80 minutes for public utilities and 166 minutes for cooperatives.
The source attributes some price differences to location and ownership structure—public utilities concentrate in cities and near federal dams where power is cheaper, and they pay no income tax and can borrow tax-free. However, according to the data, these factors explain only part of the widening gap over the past five years.
Key facts
- Investor-owned utilities charged 17.8¢/kWh in 2025 versus 14.5¢ for public utilities—a 23% premium
- Investor-owned prices rose 34% since 2020, compared to 19% for public utilities
- The gap widened most sharply from 2020-2023 during the energy price spike
- New York State Electric & Gas raised prices 97% from 2020-2025, the largest increase among major utilities
- Investor-owned utilities averaged 120 outage minutes per year versus 80 for public utilities