The Utility Playbook: 5 Tactics Monopolies Use to Rig Energy

Every time you peek at your electric bill, you might notice more than just numbers, there’s a whole hidden story at work. At the Alliance for Competitive Power (ACP), we’ve spent years following this behind-the-scenes drama.

As of 2026, the so-called “utility playbook” is more relevant than ever. National residential electricity prices have climbed to an average of 18.07 cents per kWh, a significant jump from previous years. We’re pulling the curtain back so you can spot the tricks and push for a system that’s fair for everyone.

How Utility Monopolies Keep All the Cards

Utility giants have spent decades perfecting ways to guard their turf. Here are five key tactics you’ll want to look out for ways these players keep competition out and consumer choice an illusion:

1. Strategic Asset Sales: Changing Jerseys, Not the Game

Deregulation was pitched as a way to break up monopolies, but it often resulted in a game of "monopoly-musical chairs." Utilities frequently swapped assets with one another rather than selling to new, independent players. You might see a new name on your bill, but the underlying power structure remains largely unchanged.

2. The Deregulation Mirage: Complexity Over Competition

In some "competitive" states, utilities have managed to introduce layers of complexity that discourage switching. Confusing contracts and "teaser rates" can leave consumers paying more than they would under traditional regulation. For example, while Texas remains a leader in retail choice, customers must navigate a sea of over 100 retailers with widely varying terms.

3. Monopoly Control Through the Back Door: Who Owns the Wires?

Even when you choose your power supplier, the "poles and wires" (transmission and distribution) almost always remain a monopoly.

Because building duplicate infrastructure is cost-prohibitive, the company controlling the physical network effectively acts as a gatekeeper. They can sometimes delay connecting new, cheaper power sources to the grid, citing "reliability" concerns while protecting their own older, more expensive plants.

4. Inflated Infrastructure: The "AI Surge" Justification

In 2026, a major new tactic has emerged: using the massive demand from AI data centers to justify billions in new infrastructure spending. Utilities often seek to spread these costs across all ratepayers rather than having the data centers pay their fair share. Recent legislation like the SHIELD Act has been introduced in Congress to prevent families from subsidizing these massive energy costs for billion-dollar tech companies.

5. Shaping the Story: Regulatory Capture

Utilities invest heavily in lobbying and "regulatory capture"-the process where the agency meant to regulate a company ends up being influenced by it. This can lead to state commissions "rubber-stamping" rate increases. In 2026, this has become a flashpoint for voters, particularly in states like Georgia and Indiana, where residential rates have seen their most severe increases in decades.

Cracking the Myth: Does Deregulation Actually Help You?

Does breaking up utilities actually save you money? In 2026, the data shows that while prices are rising everywhere due to fuel costs and grid updates, competitive markets provide a critical "price discipline."

What really matters is accountability. Our FTI Study Results page shows that competitive markets with tough rules generally deliver lower rate growth, quicker emissions cuts, and fewer outages than the old monopoly model.

Real-World Solutions: Making Policy Work For People

Want real change? Here’s what we at ACP see working best as we navigate 2026:

• Large Load Accountability: Ensuring that new data centers pay for the specific grid upgrades they require.

• Interconnection Reform: Speeding up the years-long wait for new, cheaper power sources to connect to the wires.

• Direct Assistance: Programs like LIHEAP and Weatherization (WAP) remain essential as prices rise. In 2026, more states are expanding these programs to include electric rate reductions for low-income households.

Looking for inspiring real-life stories? Dip into our Video Library to hear from the frontlines of energy reform.

Frequently Asked Questions (FAQ)

• What is a utility monopoly? It’s the sole provider of a service in a region. While they are regulated by state commissions, they often use their status to influence rates in their favor.

• Why can’t I choose more than one utility company? Because building duplicate power lines is "bananas" expensive. However, in 32 states and D.C., you can at least choose who generates the electricity that travels over those lines.

• How do I get help with a high bill? Check federal programs like LIHEAP or your state's Public Utility Commission for assistance.

Conclusion: Understanding the utility playbook is the first step toward demanding a better system. Stay updated on the latest battles by visiting our News Page or connecting with us directly.