New Gas Plants Risk Raising Bills While Renewables Stay Cheap

TL;DR New gas-fired power plants in the West could raise consumer electricity bills due to volatile fuel costs, while renewables remain a low‑cost, stable alternative.

Context Proponents argue that natural gas provides reliable backup when solar and wind falter, especially for growing data‑center demand in Wyoming and neighboring states. However, a new report from the Institute for Energy Economics and Financial Analysis (IEEFA) says regulators and developers have overlooked the financial risks of tying power generation to a global methane market.

Key Facts IEEFA analyst Dennis Wamsted warns that fuel price spikes for gas‑fired generation could be passed directly to ratepayers, noting that methane prices are linked to worldwide markets that recently surged after geopolitical events. The report finds that, over a typical 20‑year plant lifespan, unexpected gas price jumps could add 10‑15% to average household electricity bills compared with fixed‑cost renewable systems. Methane’s climate impact is also stark: its global warming potential exceeds 80 times that of carbon dioxide, amplifying long‑term environmental costs.

Holy Cross Energy, a Colorado cooperative, sourced 85% of its electricity from renewables last year and has pledged to reach 100% renewable power, demonstrating that high renewable shares can coexist with affordable rates.

What It Means The analysis suggests that investing in gas infrastructure locks consumers into fuel‑price volatility and undermines climate goals, whereas wind, solar, and battery storage offer predictable, zero‑fuel‑cost electricity. Policymakers should require full life‑cycle cost assessments—including projected fuel price swings—before approving new gas plants.

Watch for upcoming state utility commission hearings where the IEEFA findings may influence decisions on proposed gas projects in Wyoming and the broader West.