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Report: Utility bills outpacing inflation
There's a new report out that says your utility bills have become the fastest driver of inflation. Fox Chicago's Bret Buganski shows you why the authors of that research say it's going to take you at home to change that.
WASHINGTON, D.C. - A new report says your utility bills have become the fastest driver of inflation, according to Powerlines.
What we know:
The nonpartisan consumer education nonprofit PowerLines researched utility bills and the state of energy affordability. It analyzed electric and gas utilities in 2025, which found companies requested $31 billion in rate increases in 2025, which was more than double the $15 billion it requested in 2024.
This impacts 81 million Americans, when affordability continues to be one of the biggest concerns for families in 2026.
The study found utility electricity and gas prices are not only outpacing inflation, but they've become the fastest driver of inflation, surpassing groceries, vehicles and medicine. We spoke with the founder and CEO of PowerLines, Charles Hua.
"Eighty million Americans right now can't afford their utility bills and that's left a lot of people feeling powerless," said Hua. "We have conducted some polling showing that four in five Americans feel like they can't do anything about these costs and they've gone up 40% of the last five years, and there's no sign of relief in sight."
RELATED: Soaring NIPSCO bills leave families struggling across Northwest Indiana
What they're saying:
The new report comes out after several Fox Chicago viewers living in Northwest Indiana have complained about their rising NIPSCO bills. Some are reporting their gas and electric bills have doubled or tripled in one calendar year. It's reached a point where several Indiana residents are scheduling protests outside NIPSCO offices next Sunday and Wednesday in Hammond and Merrillville, respectively.
Fox Chicago reached out to NIPSCO about why their utility bills have gone up and the upcoming protests. A spokesperson released a statement Thursday saying:
"We understand that some customers are seeing higher-than-normal bills, and we want them to know we hear them. We know this is frustrating, and we care about what they’re experiencing. Our priority is to support customers, answer their questions, and help them stay connected.
"We’re committed to transparency, outreach and helping customers understand and manage their bills. We appreciate our customers and want them to know assistance, payment options and the Budget Plan are available at NIPSCO.com/FinancialSupport and NIPSCO.com/BudgetPlan.
"Additionally, NIPSCO is aware of several social media posts calling for protests at or near company locations, and we are taking proactive steps to ensure operations remain safe and uninterrupted. We value our customers, respect their right to voice their concerns, and are committed to delivering safe and reliable service. The safety of our employees and community remains our top priority. We will take appropriate steps to maintain a safe environment while supporting lawful and peaceful expression."
Hua told us he's been monitoring the billing controversy in Northwest Indiana regarding NIPSCO.
"It's important to note that utility companies like NIPSCO, they are for-profit private companies with shareholders on Wall Street," said Hua. "But what makes them different from any other company is that they're a monopoly granted by the state."
Hua found during this study that utility companies are not using their power grid efficiently, because government bodies have not established an incentive structure, and that companies don't make a profit when it creates a more efficient grid.
Why did my utility rates go up?
PowerLines research explains that utility bills consist of two main components.
One includes your energy use, and the other is made up of rates and fees which make up your total bill. This may include upgrading and maintaining infrastructure, and even "pass-through charges."
One example is a cost paid by the utility and passed onto the consumer. Any time a utility company wants to raise rates, it needs to get approval from a regulatory board or commission. In both Illinois and Indiana, those regulatory commissions are chosen by the governor.
Fox Chicago asked Hua if members of those commissions rubber stamped those rate approvals.
"We found that in general, the majority of the requested amount typically gets approved. That is starting to change in some places, but it's still the case that when a utility is looking to increase rates generally for the past several years, they've been able to get that rate increase approved," said Hua.
RELATED: Indiana lawmakers approve utility relief bill, but does it go far enough?
He also said it's difficult for consumers to navigate how the process works, since governmental bodies, and oversight agencies, make it difficult to follow and attend meetings where they're deciding rate increases. Hua said it creates a perception that consumers have no say in the decision-making process. Which is why Hua feels consumers can enact real change by contacting their elected officials.
"The alternative is frankly a route that we don't want, utility rates continue to skyrocket, and there's grid power outages and your bills are so high, so you're paying more for a less reliable product," said Hua.
The Source: This story contains reporting from Fox Chicago's Bret Buganski.