Americans are justifiably concerned about energy prices. Two in three Americans report bill increases over the past year, and three in four worry that costs will continue to rise. Without a corresponding increase in supply, those fears will become reality. Smart approaches to needed infrastructure investment can help on this front.

Analysis of the American energy market shows that electricity demand will increase 25% in the next four years and 78% in less than 25 years compared to 2023. Advanced manufacturing and new technologies like Artificial Intelligence are leading factors in the increased demand.

That examination also warns of a risk for residential customers: “electricity rates could increase by 15% to 40% by 2030, depending on the market. By 2050, some rates might even double.”

Meeting demand will require major investments in generation, transmission, and grid modernization. Done right, meeting those needs and lowering ratepayer costs does not have to be a trade-off.

Typically, when energy utility companies build infrastructure like power plants and transmission lines, taxpayers bear the costs. For consumers, modernization typically comes with a hefty price that gets tacked on to their energy bill.

With utilities are facing difficult choices as electricity demand accelerates, customer bills have already climbed steeply—average rates have increased more than 5% in the past year alone.

Private sector investment can help assuage some of these challenges. Recent utility partnerships have demonstrated how outside capital can lead to long-term financing for next-generation energy projects while shielding consumers.

For example, AES Indiana recently announced its acquisition by Global Infrastructure Partners and EQT. This unlocks new financing streams that allow AES Indiana to realize projects that consider the big picture of America’s future and growth beyond the next financial quarter.

In addition to the acquisition, AES Indiana recently announced a partnership to build a data center in Monrovia to add capacity and look to improve grid reliability. The announcement touts over $770 million in customer savings over the next 15 years.

The U.S. Secretary of Energy recently cited that pending rate application in Indiana as evidence that states attracting large-load customers are seeing electricity prices rise slower than inflation.

Increasing recognition in private sector financing for infrastructure is overdue. Proper market driven approaches can encourage investment, reward innovation, and protect Americans from runaway costs and government overreach.

As America’s electricity needs continue to grow, utilities, policymakers—and investors—must keep working families front and center.

A modernized, more efficient grid can have a multiplier effect in benefitting local economies in the 21st Century and still lead to lower household energy bills.

The Indiana example shows what is possible when private capital meets public need.