These States Have the Highest Average Price of Electricity

Not all states are equal when it comes to the cost of electricity. To illustrate this point, imagine the following: take your home and 100% duplicate it in every state across the country. All things being equal, your electric bill should be about the same as it is in your home state. But the truth of the matter is, all things are not equal.

The fact is, electricity rates are not fixed nationwide. So the cost of running your refrigerator may be three times more expensive in another state compared to your own. But even worse, it could be three times less than other states.

To demonstrate how much electricity rates vary across the country, 24/7 Wall Street analyzed the average retail price of a kilowatt hour (kWh) in all 50 states. A kWh, defined as 1000 watts per hour, is the standard measure of electricity. To understand this measure, the average refrigerator uses approximately 1-2 kWH per day while a central air conditioning unit running during the summer will use roughly 3 kWh per hour.

The question is, why do electricity rates vary across the country as much as they do? One factor is which primary fuel sources are used to generate electricity in each state. Another very important factor is weather conditions. These factors can raise or lower the price of energy per state.

In 2016, coal was surpassed by natural gas as the country’s largest source of energy for electricity generation. In fact, in 2017 natural gas accounted for roughly one-third of electricity generated in the U.S.

Breaking it down even further, at the current time, natural gas is the largest source of electricity in 16 of the 50 states. But despite being surpassed by natural gas two years ago, coal still remains as the largest source of electricity in 18 states. Hydroelectric power is the largest power source in six states while nuclear energy is the largest in nine.

Interestingly enough, just because the average electricity rate is high in certain states doesn’t mean that these states have the highest bills. To illustrate this point, in states with high kWh rates, customers compensate by lowering their overall usage. But in states where kWh rates are relatively low, usage can be more than doubled which leads to higher overall bills.

Here are the top 10 states with the highest average price of electricity along with a few other stats that compare them with the rest of the country. This data comes from USA Today.

  1. Maine

Average price of electricity: 15.96 ¢/kWh

Average monthly usage: 546 kWh per customer (2nd lowest)

Average monthly bill: $86 (4th lowest)

Largest electricity source: Conventional hydroelectric

 

  1. Vermont

Average price of electricity: 17.65 ¢/kWh

Average monthly usage: 549 kWh per customer (4th lowest)

Average monthly bill: $95 (11th lowest)

Largest electricity source: Conventional hydroelectric

 

  1. New York

Average price of electricity: 18.04 ¢/kWh

Average monthly usage: 595 kWh per customer (7th lowest)

Average monthly bill: $105 (17th lowest)

Largest electricity source: Natural gas

 

  1. California

Average price of electricity: 18.24 ¢/kWh

Average monthly usage: 547 kWh per customer (3rd lowest)

Average monthly bill: $95 (10th lowest)

Largest electricity source: Natural gas

 

  1. Rhode Island

Average price of electricity: 18.30 ¢/kWh

Average monthly usage: 586 kWh per customer (5th lowest)

Average monthly bill: $109 (23rd lowest)

Largest electricity source: Natural gas

 

  1. Massachusetts

Average price of electricity: 18.92 ¢/kWh

Average monthly usage: 599 kWh per customer (8th lowest)

Average monthly bill: $114 (23rd highest)

Largest electricity source: Natural gas

 

  1. New Hampshire

Average price of electricity: 19.22 ¢/kWh

Average monthly usage: 604 kWh per customer (9th lowest)

Average monthly bill: $111 (24th lowest)

Largest electricity source: Nuclear

 

  1. Connecticut

Average price of electricity: 20.31 ¢/kWh

Average monthly usage: 711 kWh per customer (15th lowest)

Average monthly bill: $142 (3rd highest)

Largest electricity source: Nuclear

 

  1. Alaska

Average price of electricity: 21.57 ¢/kWh

Average monthly usage: 590 kWh per customer (6th lowest)

Average monthly bill: $120 (16th highest)

Largest electricity source: Natural gas

 

  1. Hawaii

Average price of electricity: 29.50 ¢/kWh

Average monthly usage: 505 kWh per customer (the lowest)

Average monthly bill: $139 (5th highest)

Largest electricity source: Petroleum liquids

2018-09-17T09:11:09+00:00 September 17th, 2018|