US Gas-Fired Power Costs Hit 17-Year High Amid Rising Demand

The cost of generating electricity from natural gas-fired plants in the US has reached its highest level in at least 17 years, according to a recent report by Lazard Inc. The levelized cost of energy, or the long-term electricity price that a power-plant must get to break even, for combined cycle gas plants rose to $90 per megawatt-hour (MWh) in 2026.

This is an increase from $78 per MWh in 2025 and marks the highest cost since 2009 when it was $83 per MWh. The surge in costs is attributed to rising demand, particularly from new data centers.

The cost of generating electricity from solar power also rose to $69 per MWh, while onshore wind increased to $68 per MWh, both up more than 10% from a year ago and the highest since at least 2014. These findings highlight the growing concern over high electric costs in parts of the US, which has become a key issue for voters ahead of the midterm elections in November.