Electricity Rates By State

Energy Rates by State

Energy deregulation aka “Energy Choice” is the process that allows residents and businesses in multiple states to compare and choose plans from a number of retail energy providers. View the map above to see if your state is deregulated.

Electricity and Natural Gas Choice States

• Pennsylvania
• Maryland
• New York
• Ohio
• Illinois

Electricity Choice States

• Massachusetts
• Connecticut
• New Hampshire
• New Jersey
• Rhode Island
• Texas
• Washington D.C.

Natural Gas Choice States

• Michigan
• Georgia

What you pay for electricity depends on numerous factors including your geographic location, time of year and whether or not you live in a deregulated energy state, also known as having Energy Choice.

Our job is to help you make the most informed decision when it comes to energy and saving on your electricity bill which is why we’ve created this guide to electricity rates by state including average rates, bills, and where you can find the cheapest electricity in the country.

Average US Electricity Rate, Consumption & Bill

According to the most recent data from the United States Energy Information Association (EIA), here is the United State’s average residential electricity rate, consumption and electricity bill as of 2022:

• Average United States Electricity Rate – 15.04¢ per kWh
• Electricity Consumption Average – 899 kWh per month
• Electricity Bill Average– $135.25 per month

Average Residential Electricity Rate, Bill and Consumption by State

Below you can find the average residential electricity rate, average residential electricity consumption, and the average residential electricity bill for each state in the US.

Average Electricity Rates based on 2022 Average Price of Electricity by State
Source: 2022 Average Monthly Bill – Residential

Average Residential Electricity Rates by State

Electricity rates by state for the most recent month with data available including how much rates have gone up or down since this time last year.

Average Electricity Rates based on June 2024 Average Price of Electricity by State
Source: EIA Electric Power Monthly: Table 5.6.B. Average Price of Electricity to Ultimate Customers by End-Use Sector

States With the Highest Electricity Rates

States with the most expensive electricity rates including the state’s average consumption and monthly bill.

Average Electricity Rates based on 2022 Average Price of Electricity by State
Source: 2022 Average Monthly Bill – Residential

Why Are Electricity Rates So High In Certain States?

There are many factors that influence energy costs for a state, including state regulations and climate. But the primary factors that cause high electricity rates include access to resources and distribution issues.

Distribution Challenges for Hawaii

Hawaii, for example, has separate electric grids for each island. This means that one island can’t pull power from another island, let alone other states. In the lower 48 states, the grid is largely interconnected, which increases efficiency and lowers cost. Combine this with a heavy reliance on imported petroleum for power generation, and it’s easy to see why rates are almost three times higher than the US average.

High Prices for Rural Areas in Alaska

For Alaska, the main cause of higher average electricity rates is grids in rural areas that are not connected to the state’s main “Railbelt” electric grid. This causes those rural areas to see 3-5 times higher prices than urban areas in the state.

In Massachusetts, Connecticut and Rhode Island, the cost to transport natural gas, the primary source of electricity generation, is prohibitively high which drives up electricity supply costs.

States with the Lowest Electricity Rates

States with the least expensive electricity rates including the state’s average consumption and monthly bill.

Average Electricity Rates based on 2022 Average Price of Electricity by State
Source: 2022 Average Monthly Bill – Residential

Why Are Electricity Rates So Low In Certain States?

As we said in the previous section, access to resources is important. However, what’s also important is how much it costs to generate electricity with those resources.

For example, Washington primarily generates electricity through hydropower, which has minimal operating costs. This is why their electricity rates are the lowest in the nation. The same reasoning applies to Idaho.

There’s no clear reasoning why Louisiana, Arkansas and Oklahoma have lower rates than the rest of the nation. One could be that each has access to and uses natural gas to generate electricity, which has become extremely cheap over the years.