THE SILENT TAX THEY PRAY YOU DON'T NOTICE

3.5% per year. Every year. For 25 years. That’s not inflation. That’s a HEIST.

The utility lobby spent decades convincing America that rate increases are “modest” and “necessary.” They use words like “infrastructure investment” and “grid modernization” to describe what is, in mathematical reality, a compounding tax on your income imposed by a company with zero competition.

We ran the math. Here’s what they’re actually taking from your family.

THE COMPOUND RATE HEIST: SHOW ME THE MATH

The U.S. Energy Information Administration (EIA) reports that the average residential electricity rate has increased at approximately 3.5% per year since 2000. Let’s see what that actually means when compounded over 25 years.

If you pay $200/month today…

Year	Monthly Bill	Annual Bill	Cumulative Paid
2025	$200	$2,400	$2,400
2026	$207	$2,484	$4,884
2028	$222	$2,664	$9,912
2030	$237	$2,844	$15,180
2035	$283	$3,396	$31,044
2040	$337	$4,044	$49,620
2045	$401	$4,812	$70,896
2050	$479	$5,748	$87,132

Total paid over 25 years: $87,132.

For a $200/month current bill. At 3.5% annual escalation. To a company with zero competition.

Source: EIA Electric Power Monthly 2024; compound interest formula applied to historical rate increases.

”BUT 3.5% IS TINY”

That’s what they’re counting on you thinking. But 3.5% compounded annual growth is not tiny. It’s the same growth rate that, over 25 years, more than doubles your bill.

Your $200/month bill today becomes a $479/month bill in 2050. Your annual cost goes from $2,400 to $5,748. And you’ll have paid $87,000 along the way.

Would you sign a contract today committing to pay $87,000 to a company over the next 25 years — with no ability to negotiate, no competition to move to, and rates that increase every single year?

You already did. It’s called your electric bill.

HOW THEY GET AWAY WITH IT

Compound rate increases work because humans are bad at visualizing compounding. We feel the $7/month increase this year. We don’t feel the $87,000 lifetime cost.

The utility lobby understand this perfectly. Their rate case filings are specifically constructed to request “modest” increases — 3-4% rather than 15% at once. Regulators approve them because they appear small. The compound effect is never discussed in rate case proceedings.

“They’re not raising your rates. They’re taking your life savings in $7 increments.”

Source: NARUC Rate Case Tracking Database 2024; compound growth analysis.

THE SOLAR ALTERNATIVE: LOCK IN YOUR RATE AT ZERO

A solar system eliminates most or all of your utility bill for 25-30 years. Your “rate” for the power your panels produce is $0/kWh — forever. The rate cannot be increased. There is no state commission that can approve an increase. There is no monopoly charging you more every year.

The math comparison:

Option	Cost Year 1	Cost Year 25	Total 25-Year Cost
Stay with utility	$2,400	$5,748	$87,132
Go solar (after 30% ITC)	$16,800 system + $0/yr	$0	~$16,800 total
Difference			$70,000+ SAVINGS

That’s not a projection. That’s compound math. The only assumption is that the utility continues its historical 3.5% rate increase. Given that rate cases are approved 90%+ of the time, that assumption is extremely conservative.

Source: EIA 2024; NREL Solar Cost Analysis 2024; IRS.gov Form 5695.

THE MOST EXPENSIVE THING YOU OWN IS YOUR ELECTRIC METER

Your utility meter is a portal for one of the most expensive commitments in your life — more than your car, potentially more than your homeowners insurance over the same period. And unlike your car, you never stop paying it. Unlike your insurance, you can’t shop around.

The only way out is off. Or at least — significantly reduced. Solar is how you dramatically cut the amount flowing through that meter.

When’s the last time your utility sent you a bill and showed you the 25-year total? They never will. That’s our job.