What the 'Big Beautiful Bill' Means for Your Electricity Prices

The Big Beautiful Bill Act, signed into law on July 4, 2025, is likely to push electricity prices lower in the short term and higher over the long run. The effect will be most direct if you live in a deregulated state like Texas, Illinois, Ohio or Pennsylvania, where businesses choose their own energy supplier instead of being locked to the local utility.

How will the Big Beautiful Bill affect electricity prices in the short term?

The law rolls back support for clean energy, including tax credits for wind, solar, electric vehicles and other renewables. At the same time, it expands fossil fuel production by opening up more land for coal and gas development and reducing royalty costs for producers. Supporters claim the bill will lower costs and strengthen domestic energy security. 

In the short term, the increased focus on fossil fuels may lead to slightly lower electricity prices. Coal and natural gas are relatively cheap to operate today, especially now that clean energy incentives are being withdrawn. For some customers, particularly those on fixed-rate plans, where the price is locked in for the length of the contract, this could translate into temporary cost savings.

But those savings come with risks. Fossil fuels, especially natural gas, are extremely volatile. Global markets, extreme weather and supply disruptions can trigger dramatic price swings. During Winter Storm Uri in 2021, for example, natural gas prices surged 3,000% and caused massive bill spikes across Texas. By shifting more of our energy mix toward fossil fuels, the bill exposes customers to more of that same volatility.

What are the long-term effects on electricity prices?

There are also long-term cost concerns. Without tax credits and policy support, many renewable energy projects will slow down or get canceled entirely. That means fewer new sources of cheap power in the coming years. As the supply of renewables shrinks, overall energy prices are likely to rise—especially in deregulated markets that depend on competition and a healthy energy mix to keep rates in check.

Grid costs are another hidden consequence. If renewable growth slows, the grid will rely more heavily on older fossil fuel infrastructure. That could lead to congestion, reliability issues and increased costs for services like reserves and frequency regulation. These costs don’t always show up as line items on your bill, but they’re passed through to customers just the same.

The bill also introduces more risk and uncertainty for energy suppliers. With future policy direction unclear and fuel costs less predictable, many suppliers will hedge their risk by raising retail rates. Smaller providers may exit the market altogether, reducing competition and limiting consumer choice.

Key Takeaway

The Big Beautiful Bill will likely lower electricity prices modestly in the short term, but push them higher and more volatile over time, especially in deregulated states. Retail customers could see fewer supplier options, more hidden fees, and bigger swings in energy costs as the market shifts back toward fossil fuels. If you're in a deregulated state, this is a good time to revisit your energy plan.