US Cost for Gas Power at 17-Year High and Climbing, Lazard Says

The cost of power from natural gas-fired plants in the US hit a 17-year high of $90 per megawatt-hour in 2026, driven by surging demand from data centers, according to Lazard. Solar and wind costs also rose over 10% year-over-year, contributing to higher utility bills for American consumers.

Bloomberg -- The cost of power from natural gas-fired plants in the US hit the highest level in at least 17 years, and is poised to climb even higher as demand surges from new data centers. Most Read from Bloomberg - Hormuz Route Open Despite Iran Declaration, Maritime Group Says https://www.bloomberg.com/news/articles/2026-07-12/hormuz-route-open-despite-iran-declaration-maritime-group-says?utm campaign=bn&utm medium=distro&utm source=yahooUS - OpenAI Engineer's 'LOL' Moment Set Stage for Legal Fight With Apple https://www.bloomberg.com/news/articles/2026-07-11/openai-engineer-s-lol-moment-set-stage-for-legal-fight-with-apple?utm campaign=bn&utm medium=distro&utm source=yahooUS - Trump Embraces Australian Retirement System Backed by Larry Fink https://www.bloomberg.com/news/articles/2026-07-12/trump-embraces-australian-retirement-system-backed-by-larry-fink?utm campaign=bn&utm medium=distro&utm source=yahooUS That's according to George Bilicic, global head of power, energy and infrastructure at Lazard Inc., which tracks the so-called levelized cost of energy. That's the long-term electricity price a power-plant must get to break even. For combined cycle gas plants, that rose to $90 a megawatt-hour in 2026, according to a report Monday. That's up from $78 a year earlier and the highest since 2009, the earliest year in the data, when the cost was $83. It's not just gas that's getting more expensive. The cost for solar rose to $69 a megawatt-hour and onshore wind increased to $68, both up more than 10% from a year ago and the highest since at least 2014. The findings help illuminate why utility bills are climbing in parts of the US. High electric costs have emerged as a key issue for voters, and are a talking point in the runup to the midterm elections in November. Most Read from Bloomberg Businessweek - The Shattering of the Middle East's Most Unlikely Friendship https://www.bloomberg.com/news/features/2026-07-10/israel-palestine-conflict-shatters-unlikely-friendship-that-bridged-borders?utm campaign=bw&utm medium=distro&utm source=yahooUS - World Cup Panini Sticker Book Fans Brace for End of a 60-Year Tradition https://www.bloomberg.com/news/articles/2026-07-10/fanatics-panini-fight-threatens-world-cup-sticker-books?utm campaign=bw&utm medium=distro&utm source=yahooUS - More Workers Take Mental Health Leave, and Bosses Aren't Happy https://www.bloomberg.com/news/articles/2026-07-08/mental-health-leave-is-rising-as-more-us-workers-take-fmla-time-off?utm campaign=bw&utm medium=distro&utm source=yahooUS ©2026 Bloomberg L.P.