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Electricity Rates By State

Updated: 06/18/2021

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.

2021 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:

  • Average United States Electricity Rate – 13.01¢ per kWh
  • Electricity Consumption Average – 887 kWh per month
  • Electricity Bill Average– $115.49 per month

Average Residential Electricity Bills 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.

Source: EIA 2019 Power Annual

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.

Source: EIA

States With the Highest Electricity Rates

States with the most expensive electricity rates including how much those rates have changed since the same time last year.

Source: EIA

Why Are Electricity Rates So High In Certain States?

There are many factors that influence electricity rates, 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 how much those rates have changed since the same time last year.

Source: EIA

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.

FAQs About State Electricity Rates

What state has the cheapest electricity rates?

According to the most recent annual data, the state with the lowest average residential electricity rate is Washington at 9.71¢ per kWh. Washington is followed by Louisiana (9.80¢ per kWh), Arkansas (9.80¢ per kWh), Idaho (9.89¢ per kWh) and Oklahoma (10.21¢ per kWh).

What state has the most expensive electricity rates?

According to the most recent annual data, the state with the highest average residential electricity rate is Hawaii at 32.06¢ per kWh. Hawaii is followed by Alaska (22.92¢ per kWh), Massachusetts (21.92¢ per kWh), Connecticut (21.87¢ per kWh) and Rhode Island (21.73¢ per kWh).

What is a good price per kWh for electricity?

The average price for electricity in the US is 13.01¢ per kWh. However, a good electricity rate for you depends on where you live. To see what a good price per kWh is for your area, look at the average electricity rate for your state.

Why is your electric bill so high?

A high electric bill could be caused by many factors. Your first step should be to check your HVAC system and your home insulation since each has a large impact on your consumption. Next, if you live in a state with Energy Choice, check your electricity supply rate and consider switching providers for a lower rate.

How much electricity should you use per day?

The average home in the US uses 29.6 kWh of electricity per day, but how much you should use will vary based on the size of your home, the climate and season you’re in and the electrical appliances you use.

What factors influence your electricity rate?

Factors that influence your electric rate include access to natural resources, the cost to generate electricity with those resources, electricity demand, electricity distribution costs, state regulations and the type of electricity customer you are (residential customers usually pay more than businesses).