U.S. Electricity Prices Rose 4% Over Past Year Amid AI Claims

U.S. electricity prices increased by approximately 4.1% from September 2025 to August 2026, rising to an average of 19.6 cents per kilowatt-hour. This contrasts with claims by Elon Musk that AI data centers are lowering consumer electricity bills, specifically citing a $180 annual savings from Georgia Power contracts. In fact, U.S. electricity prices have outpaced overall inflation, which increased by 3.4%. The data indicates a growing demand for power from AI, yet companies like Vistra (VST) have seen a 30% drop in shares over the past year. This situation is relevant for investors assessing the impact of energy costs on utility stocks.