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

Emily Forgash

Mon, July 13, 2026 at 6:00 AM CDT 1 min read

(Bloomberg) -- 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.

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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.