In the United States, the volatility of electricity prices has become a significant concern for CFOs, particularly as commercial electricity prices have risen nearly 6% annually from 2020 to 2025. This increase has outpaced the typical 2%-3% budgeting estimate that most businesses rely on, leading to unexpected financial challenges. One CFO reported missing their quarterly earnings per share target due to a price change from a regional utility, highlighting the direct impact of energy costs on corporate performance.
The aging electrical grid and the rapid retirement of older coal baseloads have contributed to this volatility. As demand for electricity surges, driven by data centers, electric fleets, and reshored manufacturing, communities are now faced with difficult decisions regarding power allocation. The Midcontinent Independent System Operator (MISO) has seen a dramatic increase in summer capacity prices, which jumped to $666 per megawatt-day in 2025, a stark contrast to the $30 price in 2024.
CFOs are increasingly recognizing the importance of energy management within their organizations. The role of the energy manager has become crucial as they navigate complex data from various providers and attempt to optimize energy use across multiple locations. However, many companies still lack the necessary visibility into their energy consumption, making it difficult to manage costs effectively. This has led to a growing demand for energy managers who can provide insights and strategies to mitigate rising energy expenses.
As the intelligence revolution continues to unfold, the focus on energy management is expected to intensify. Smart leadership teams are beginning to elevate the role of energy managers within their organizations, ensuring they have the tools and resources needed to develop effective energy strategies. By placing energy management on the agenda alongside growth initiatives, companies can better prepare for the challenges posed by rising electricity costs and ensure their financial stability in an increasingly volatile market.
