US Cost for Gas Power at 17-Year High and Climbing, Lazard Says

The cost of power from natural gas-fired plants in the US hit the highest level in at least 17 years, and is poised to climb even higher as demand surges from new data centers.

That’s according to George Bilicic, global head of power, energy and infrastructure at Lazard Inc., which tracks the so-called levelized cost of energy. That’s the long-term electricity price a power-plant must get to break even.

For combined cycle gas plants, that rose to $90 a megawatt-hour in 2026, according to a report Monday. That’s up from $78 a year earlier and the highest since 2009, the earliest year in the data, when the cost was $83.

It’s not just gas that’s getting more expensive. The cost for solar rose to $69 a megawatt-hour and onshore wind increased to $68, both up more than 10% from a year ago and the highest since at least 2014.

The findings help illuminate why utility bills are climbing in parts of the US. High electric costs have emerged as a key issue for voters, and are a talking point in the runup to the midterm elections in November.