"While now is not yet the time to panic, it is time for immediate action to meet surging demand from the AI boom and electrification, and to keep everyday Americans from drowning in costs from spiking utility bills, said Butler, who also chairs the Edison Electric Institute, which represents investor-owned electric utilities nationwide. 'The warning lights are on. You're driving your car and the check-engine light is on. You're like, 'I'm going to keep pushing this.' And no one is going to pay attention until it breaks down,' Butler said Tuesay at Fortune's Brainstorm AI conference in San Francisco."
"The fear is that the grid will break down in different regions on their hottest and coldest days. 'And people are going to suffer. You have to fix it now,' said Butler, whose Exelon ( No. 192 on the Fortune 500) services communities from Chicago to Washington, D.C."
"After nearly 15 years of flat demand, U.S. electricity generation growth is expected to hit 2.4% in 2025 and rise by close to 2% next year as well, the U.S. Department of Energy said Dec. 9. Residential electricity prices have skyrocketed about 30% since 2021. As of the end of September, electricity costs are up nearly 7.5% in 2025 from the prior year, and are projected to continue rising in 2026, according to the DOE."
The U.S. must invest in power generation of all kinds, including renewables, and improve efficiencies to prevent grid breakdowns and runaway utility prices. Immediate action is required to meet surging electricity demand driven by the AI boom and broader electrification. The grid faces risk of failures during peak heat and cold, creating acute public-safety and economic impacts. After nearly 15 years of flat demand, generation growth is forecast to rise about 2-2.4% in 2025-2026. Residential electricity prices have jumped roughly 30% since 2021, with costs up nearly 7.5% year-over-year in 2025, making energy costs a leading inflationary pressure and political concern.
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