Democrats Reconsider Energy Efficiency Programs Amid Rising Electricity Costs

Residents on the East Coast are experiencing some of the steepest increases in electricity costs nationwide. In response, some Democrats are now considering drastic cuts to energy-efficiency programs. The rationale is that utilities fund these programs through customer charges, so reducing them could lower bills quickly.

However, energy efficiency is designed to do exactly that: reduce energy consumption and, in turn, lower costs. “The cheapest, fastest thing you can do to help meet energy demand in this moment of increasing need for energy is energy efficiency,” said Mark Kresowik, senior policy director at the American Council for an Energy-Efficient Economy (ACEEE).

This emerging trend among Democrats mirrors a long-standing shift among Republicans, reversing decades of bipartisan support for energy conservation. In 1973, when Arab countries halted oil exports to the U.S. in protest of its support for Israel during the Yom Kippur War, oil prices surged, gas lines formed, and electricity bills rose. President Richard Nixon responded by proposing measures to cut energy use, including reducing speed limits to 50 mph and urging Americans to lower thermostats in winter.

This marked the beginning of a decades-long, bipartisan push to improve energy efficiency and reduce reliance on foreign oil. The effort ultimately saved Americans trillions of dollars. Efficiency standards for vehicles led manufacturers to produce cars with better gas mileage, cutting fuel costs by an estimated $5 trillion over decades while preventing 14 billion metric tons of carbon dioxide emissions. Government-mandated efficiency standards for home appliances and plumbing continue to save the average household about $576 annually on utility bills, reducing national energy use by 6.5%, according to Department of Energy data from January 2023.

Politicians Reverse Course Amid New Energy Crisis

Today, another oil crisis—sparked by conflict in the Middle East—has prompted a different response. The Trump administration, along with Republican lawmakers, has rolled back Biden-era fuel economy standards for cars and efficiency requirements for appliances. Now, some Democrats, long-time advocates of energy efficiency, are also wavering in their support.

The result is a concerning trend: as data centers consume more electricity, extreme weather strains the grid, and aging infrastructure drives up prices, politicians are weakening one of the most effective tools for lowering bills and protecting consumers from price volatility.

Maryland’s Shift in Energy Policy

In Maryland, Democratic Governor Wes Moore is expected to sign legislation that scales back the state’s emissions reduction targets. The move would reduce the amount utilities must spend on energy-efficiency programs and eliminate a surcharge that appears on ratepayers’ bills.