For the first time since it began grading the nation’s largest electric utilities, the Sierra Club has handed out an overall grade of “F” on climate performance. The group’s 2025 Dirty Truth report, released this week, concludes that major U.S. utilities are backsliding on clean energy commitments and doubling down on fossil fuels — a shift that analysts say risks locking in decades of higher emissions.

When the report card launched in 2021, most utilities scored poorly, but there were at least signs of incremental progress under policies like the Inflation Reduction Act. By mid-decade, however, the Sierra Club says those gains have largely evaporated.

“It’s very disappointing to find we’re at a lower score than in the first year,” said Cara Fogler, managing senior analyst at the Sierra Club and a coauthor of the report. “But it’s not entirely unexpected.”

The report cites two main drivers: soaring electricity demand from energy-intensive data centers and cryptocurrency mining, and the Trump administration’s rollback of clean energy incentives. Actions such as suspending offshore wind projects and ordering coal and gas plants to remain online have further tilted the balance toward fossil fuels.

By the Numbers

The 2025 report evaluates 75 of the largest U.S. utilities, which together own more than half of the nation’s coal and gas capacity. The analysis measured utility plans against three benchmarks: closing all coal plants by 2030, avoiding new gas plant construction, and adding enough clean capacity by 2035 to replace fossil fuels and meet rising demand.

• Coal retirements: Utilities now plan to close only 29% of coal generation capacity by 2030, down from 35% in 2023.
  
  
• Gas buildout: Planned gas capacity additions jumped to 118 gigawatts by 2035 — more than double the 51 GW planned just four years ago.
  
  
• Clean energy buildout: Solar and wind additions are projected to meet only 32% of what’s needed by 2035.

Some utilities, including Xcel Energy and Portland General Electric, have modestly increased their renewable plans. But many others — among them Duke Energy, Dominion Energy, and Southern Company — are pressing forward with new gas plants while extending the lives of coal facilities.

The findings echo broader concerns raised by independent analysts and regulators. A 2024 report from the International Energy Agency found that U.S. power-sector emissions had plateaued after years of decline, in part due to utilities’ reliance on gas. And while renewables remain cost-competitive, especially in wind- and solar-rich regions, utilities have been slow to shift away from fossil fuel contracts and infrastructure.

At the same time, electricity demand is surging. The Department of Energy projects U.S. electricity consumption could grow by 15% by 2035, driven by electric vehicles, data centers, and industrial electrification. Without a significant pivot to renewables, analysts warn, the gap will be filled by fossil fuels.

From a climate perspective, the stakes are high. The power sector accounts for roughly a quarter of U.S. greenhouse gas emissions, making it central to any decarbonization strategy. The Sierra Club estimates that failing to accelerate the transition could lock in hundreds of millions of tons of additional CO₂ emissions over the next two decades.

“From a cost perspective, from a health perspective, from a pollution perspective, there are so many reasons to build more clean energy and fewer fossil fuels,” Fogler said. “Unfortunately, we’re seeing that utilities are much less concerned about doing the right thing for the climate and their customers.”

For now, the Dirty Truth scorecard paints a sobering picture: U.S. utilities are not just stalling on climate progress — they’re moving backward.