Electricity Rates that Keep Bills Down after Electrification

Electrification is the process of replacing fossil fuel–based technologies or systems with electric equivalents. With the U.S. electricity grid currently supplied by 40% zero-carbon sources and this percentage increasing, electrification is a key part of greenhouse gas emissions reductions and climate change mitigation. However, households are unlikely to electrify their homes if their energy bills will increase (or if they believe their energy bills will increase). In this report, we focus on post-electrification energy bills, but upfront costs are also an important barrier to electrification that should be addressed.