• Average Pay: Hourly earnings in utilities reached $52.39 in January 2025.

• Salary Growth: Slowed to 4%, still above pre-pandemic averages.

• Low Unemployment: Sector unemployment at 1.2%, creating hiring challenges.

• High-Demand Roles: Wind turbine technicians (+60% job growth), electricians (+11%), and power systems engineers (+9%) are leading pay increases.

• Regional Pay Gaps: Locations like Pennsylvania offer 50% higher wages for roles like powerline workers.

Quick Overview of Trends:

This guide dives deep into salary benchmarks, regional differences, and benefits trends for both employers and employees in the utility sector.

Current Salary Trends in Utilities

Key Market Forces Affecting Pay

Utilities are adjusting compensation strategies as digital transformation and decarbonization reshape the industry. These shifts are creating a surge in demand for specialized skills.

The labor shortage is a major challenge. In 2024, 94% of construction firms reported craftworker vacancies, up from 85% in 2023 [8]. Additionally, a significant portion of the workforce in construction (29.2%) and transportation/utilities (20.4%) is foreign-born [8]. This shortage is driving wages higher across the board.

Energy demand is another factor pushing salaries upward. U.S. electricity consumption is expected to grow 9% by 2028 and 18% by 2033 [10], fueled by data center expansions and electrification efforts. This growth has created stiff competition for skilled workers, especially in emerging technical roles.

"Most electric utilities are regulated at the state level. Many states like Massachusetts and Illinois have aggressive decarbonization goals. The biggest obstacle is customer affordability. Utilities have the complicated challenge of providing safe and reliable service at the same time they need to invest in additional capacity and support modernization." - Eric Chung, Partner in West Monroe Energy & Utilities Practice [8]

These factors are directly influencing salary trends for key roles in the industry.

Salary Growth Data

The roles seeing the fastest growth in both job opportunities and pay reflect the industry's ongoing transformation:

These growth rates surpass industry averages [11], highlighting the increasing value of technical expertise. Regions with large infrastructure projects, like Georgia Power's 2024 expansion of gas and coal operations, are especially active [12].

Data centers, in particular, are reshaping salary dynamics. Energy demand from these facilities is expected to grow at a 15% annual rate through 2030 [9], leading to higher pay for roles focused on power reliability and system optimization.

The rise of advanced analytics and AI is also boosting pay for technical roles, with companies aiming to improve profitability by up to 10% [7]. Professionals with a mix of utility experience and digital skills are in high demand, often receiving premium compensation packages.

Employee development is becoming an essential part of total compensation strategies. With 75% of workers viewing GenAI as a chance to improve their skills [6], companies are investing more in training and development programs as part of their overall offerings.

Salary Ranges by Job Role

C-Suite and Leadership Pay

Executive salaries in the utility sector reflect the complexities of regulatory oversight and the increasing demands placed on leadership roles. Here's a snapshot of some top executives' compensation:

"I think that culture [of regulatory oversight] naturally lends itself to [utilities] being experts and also knowing how to compare themselves to other, let's say, S&P investment-grade-rated companies. Like, they will not have compensation packages that are way out of bounds or on the extreme, either low or high." - Albert Lin, executive director of Pearl Street Station Finance Lab [13]

Technical and Engineering Pay

Salaries for technical roles vary significantly based on expertise and location. Take a look at our salary guide for more information. Location plays a big role in Utility Engineer salaries.

Moving from technical roles to field positions, the next section explores compensation for on-site operations.

Field Operations Pay

Field roles often come with high salaries due to the physical demands and technical expertise required. Here's what you can expect:

Linemen earn higher wages than standard electricians, with an average annual salary of $85,900 and hourly rates around $41.30 [16]. This reflects the dangerous nature of their work and the specialized skills required.

Field project managers typically earn between $70,000 and $120,000 annually [18], as these roles demand both technical expertise and leadership skills.

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Location-Based Pay Differences

Data reveals a 25% rise in average hourly wages between January 2019 and summer 2024, though the pace of growth depends heavily on the region [19].

Highest-Paying Locations

Pay for utility jobs varies significantly by region, particularly for key roles like powerline workers. For instance, powerline workers in Pennsylvania earn about $64 per hour - over 50% higher than the industry average of just over $41 per hour [19]. Meanwhile, states such as Texas, California, and Illinois employ large numbers of utility workers, but higher employment rates don’t always align with top wages [19]. On top of regional pay differences, local living costs also play a major role in shaping compensation.

Living Cost Impact on Pay

Living costs in specific areas push utilities to adjust wages to stay competitive. For example, Hispanic households spend 7.9% of their income on energy costs, while Black households allocate 6% - exceeding the national average by 42% and 10%, respectively. Low-income households face the steepest challenges, with 17.8% of their income going toward energy and transportation [20].

Other factors influencing pay include the growth of data centers in states like Arizona, New Jersey, and Texas; major infrastructure investments expected to push capital expenditures to $174 billion by 2024; and rapid renewable energy development, with some regions seeing annual growth rates of 30% [12].

Urban areas also impact wages. Cities like San Jose and San Francisco offer higher pay due to elevated living costs, while less populated areas, such as Redding, California, provide competitive salaries to attract skilled workers [19].

Total Compensation Package Guide

Core Benefits Overview

The utility sector is making notable updates to benefits packages in 2025. Salary increase budgets are leveling off at an average of 4%, slightly down from 4.4% in previous years [1].

While healthcare and retirement benefits remain staples, leave policies are undergoing significant changes. For instance, 58% of utility employers now offer parental leave for all parents, and flexible PTO systems are becoming more common [1].

"Employers are recognizing the importance of robust family leave policies with family caregiver leave, and expanded parental leave also increased in popularity in the past year. Across the board, forward-thinking organizations are increasingly recognizing the potential return on investment that offering personalized leave policies can have on employee productivity and, ultimately, retention."

• Maria Trapenasso, SHRM-SCP, senior vice president and head of human capital solutions at NFP [23]

These shifts in core benefits reflect a growing focus on aligning workplace policies with modern employee expectations.

Modern Workplace Benefits

Expanding on core benefits, modern workplace offerings are designed to meet the changing needs of today’s workforce. By 2025, about 22% of Americans are expected to work remotely, prompting employers to adapt benefits accordingly [21]. Hybrid work remains popular, with 62% of employers supporting it, while 42% of employees say they’d consider leaving if required to return to full-time office work [21].

Mental health and financial wellness programs are becoming must-haves.

"Financial wellness benefits are not a one-size-fits-all approach, as each employee is at a different stage in their financial journey. While some employees are saving for major life events like retirement, others are managing everyday expenses." [23]

Demographic changes are also shaping benefits. With only 17% of utility workers over 55 (compared to 24% nationally), younger employees are prioritizing:

• Lifestyle and wellness accounts to reimburse physical, financial, and emotional well-being activities [23].

• Career development opportunities, as limited advancement options lead to higher turnover [24].

• DEI programs, with 76% of millennials considering these essential [24].

"The goal should be on better engaging employees so that you retain and gain talent. Taking the time to assess current levels of engagement and then listening to what employees need will allow you to better meet their needs and lead to a happier and more productive workforce."

• Brian Parker, vice president, national HR consulting and workforce solutions leader, at Deerfield, Ill.-based insurance firm Alera Group [23]

To address diverse employee needs, companies now offer more personalized benefits like childcare assistance, pet insurance, and wellness stipends [22]. These options not only support a varied workforce but also help organizations stay competitive in attracting and retaining talent.

Pay Optimization Methods

Employer Hiring Tools

Utility sector employers are rethinking their pay strategies to stay competitive. Real-time salary benchmarking tools have become a game-changer for setting accurate pay rates. Unlike traditional surveys that can quickly become outdated, these tools connect directly with HRIS systems to provide up-to-date market data [27]. This is especially important as 70% of organizations are planning pay equity adjustments by 2025 [1].

These tools also give employers an edge during salary negotiations by offering reliable, real-time insights.

Salary Negotiation Guide

Salary negotiations in the utility sector require a solid understanding of both market conditions and company constraints. With employee tenure dropping by 36.8% over the past decade [25], it's more important than ever for both employers and job seekers to approach negotiations strategically.

"Moving forward, trust and transparency will be essential to making informed hiring decisions. As hiring heats up, you'll need accurate salary data to create competitive offers and engage top talent." - Michael Page [26]

Key points to consider during negotiations:

• Variable pay accounts for 6-7% of payroll in general positions.

• For executive roles, variable pay can exceed 30%.

• Many organizations now openly share salary ranges [1].

High-Value Skills

Beyond negotiations and benchmarking, focusing on high-demand skills can significantly boost pay in the utility sector. Here are some of the most sought-after skill areas:

Professionals who can merge traditional utility expertise with emerging technologies are especially valued. With over half of the current utility workforce having less than 10 years of experience [12], there’s a clear opportunity for those who bring modern technical skills to the table.

"Given the intricate and safety-sensitive nature of utility operations, effective management of contractor risks is not just necessary; it is vital for safeguarding public safety, regulatory compliance, and the company's reputation." - James Junkin, CEO of Mariner-Gulf Consulting & Services [5]

To maximize earning potential, focus on areas with the highest growth, such as nuclear power, distributed energy resources, and data center operations. These fields are seeing rapid employment growth and offer strong opportunities for career advancement [12].

Conclusion: 2025 Salary Guide Summary

The 2025 salary landscape reflects how digital advancements and workforce shifts are shaping utility sector compensation. Salary increases are holding steady at 3.7%, while the industry has seen a 4.7% year-over-year wage growth [2][3].

Data highlights that compensation strategies need to evolve. For instance, 66% of managers plan to boost starting salaries for in-office roles, and 59% are offering up to 20% more pay for employees who work in the office 4-5 days a week [28].

These trends provide a clear framework for refining compensation strategies to remain competitive in the utility sector.

"It's important for job seekers to consider their must-haves when evaluating job offers and negotiating compensation packages" - Dawn Fay, Operational President at Robert Half [28]

Workforce expectations are also shifting. 75% of employees believe GenAI will create more opportunities to learn new skills, but 56% feel overwhelmed by the rapid pace of change [6].

For employers, adjusting pay structures is key to attracting top talent. Meanwhile, professionals can leverage these trends to better understand and negotiate their worth. With utility wages growing 39.7% since 2006 [3], companies must balance traditional compensation models with emerging trends like skills-based pay and new transparency requirements.

These insights offer a foundation for making informed compensation decisions in the evolving utility market.

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