Energy Rates by State 2018-09-10T12:34:48+00:00

Get to Know Electricity Supply Rates in Your State

In recent years, many states have adopted a deregulated energy market that allows residents to shop for the supply portion of their energy rather than automatically getting it from their utility – a right known as energy choice. Deregulation changed the world of energy, which is reflected in price differences across regulated and deregulated energy markets.

Here, we’ve compiled data to show you just how much energy costs can vary, including historical energy supply prices from the U.S. Energy Information Administration (EIA) in all 50 states and the District of Columbia. Information on recent rates and fluctuations may help you understand your bill or decide to change your energy supply plan.

Residential Rates by State | Commercial Rates by State | States with Lowest Rates

Energy supplier vs. utility: What is the difference?

Energy bills from your utility are split into three services: supply, transmission and delivery. What is the difference between an energy supplier and utility?

  • Energy suppliers can sell you energy supply but cannot transmit or deliver it to your home.
  • Energy utilities in some states can sell you energy supply as well as transmit and deliver energy to your home.

When you start an energy supply plan, your utility bill might look a little different, but it will not complicate how you pay for energy. Your new energy supplier’s name will appear beside the supply cost, while the utility continues to charge for the two remaining portions of your bill. But in most cases you’ll still pay only the utility. What services are on an energy bill and what does each mean?

  • Supply: Energy supply accounts for the cost of purchasing the energy from where it is produced.
  • Transmission: Energy transmission charges involve the movement of electricity from where it is generated to the place it is distributed.
  • Delivery: Delivery costs account for the delivery of electricity to your home or business.

In a traditional energy market, you receive your energy supply, delivery and transmission from the local utility. A public utility commission (PUC) controls the rates utilities charge for these services, and these rates are subject to change. If you live in a state with energy choice, you can sign up for energy supply from an independent supplier that offers rates not determined by the PUC. The local utility continues to provide power line maintenance, deliver energy to your address and restore energy in an emergency – for which it charges delivery and transmission fees.

Residential electric supply rates in 2017

As of 2016, the average home in the U.S. consumed 897 kilowatt hours (kWh) of electricity per month. Bills vary by state and region, as cost per kWh differs. To estimate this month’s supply portion of your energy bill, multiply the average home’s energy usage (897 kWh) by the supply cost per kWh in your state this time last year. For example, the average supply cost per kWh in June for Floridians was 11.86 cents, which amounted to an average energy supply bill of about $106.38 (11.86 cents x 897 kWh) that month.

Electricity rates by state, depicted in quintiles

Residential Electricity Rates by State

(cents per kWh for latest month available)

State August 2017 August 2016 % up/down % of U.S. avg. Rank
Alabama 12.78 12.22 4.6% 97% 29
Alaska 21.8 21.07 3.5% 165% 50
Arizona 12.72 12.56 1.3% 96% 27
Arkansas 10.61 10.38 2.2% 80% 5
California 19.02 18.88 0.7% 144% 46
Colorado 12.46 12.79 -2.6% 94% 23
Connecticut 20.55 18.76 9.5% 156% 49
DC 12.62 12.48 1.1% 96% 25
Delaware 13.13 13 1.0% 100% 32
Florida 11.86 11.47 3.4% 90% 16
Georgia 12.74 12.52 1.8% 97% 28
Hawaii 28.76 27.45 4.8% 218% 51
Idaho 10.63 10.51 1.1% 81% 7
Illinois 12.59 11.94 5.4% 95% 24
Indiana 11.97 11.35 5.5% 91% 17
Iowa 14.69 14.28 2.9% 111% 38
Kansas 13.62 13.17 3.4% 103% 34
Kentucky 10.61 10.31 2.9% 80% 6
Louisiana 9.82 9.43 4.1% 74% 1
Maine 15.96 16.12 -1.0% 121% 42
Maryland 13.93 13.83 0.7% 106% 36
Massachusetts 19.94 18.32 8.8% 151% 48
Michigan 15.7 15.87 -1.1% 119% 40
Minnesota 13.89 13.11 5.9% 105% 35
Mississippi 10.98 10.31 6.5% 83% 9
Missouri 12.86 12.4 3.7% 97% 30
Montana 11.46 11.5 -0.3% 87% 12
Nebraska 12.13 12.02 0.9% 92% 19
Nevada 11.77 10.83 8.7% 89% 15
New Hampshire 19.2 18.23 5.3% 146% 47
New Jersey 15.86 16.22 -2.2% 120% 41
New Mexico 13.38 13.02 2.8% 101% 33
New York 18.59 18 3.3% 141% 45
North Carolina 11.37 11.36 0.1% 86% 11
North Dakota 12.22 11.38 7.4% 93% 20
Ohio 12.62 12.2 3.4% 96% 26
Oklahoma 10.59 10.51 0.8% 80% 4
Oregon 10.93 10.86 0.6% 83% 8
Pennsylvania 14.41 13.81 4.3% 109% 37
Rhode Island 17.79 18.57 -4.2% 135% 44
South Carolina 13 12.76 1.9% 99% 31
South Dakota 12.44 11.93 4.3% 94% 22
Tennessee 10.58 10.54 0.4% 80% 3
Texas 11.11 10.94 1.6% 84% 10
Utah 11.62 11.89 -2.3% 88% 13
Vermont 17.72 17.27 2.6% 134% 43
Virginia 12.42 11.74 5.8% 94% 21
Washington 9.85 9.57 2.9% 75% 2
West Virginia 11.67 11.57 0.9% 88% 14
Wisconsin 14.98 14.33 4.5% 114% 39
Wyoming 12.09 11.75 2.9% 92% 18

Commercial electricity supply rates in 2017

In states with energy choice, the open market is not only for residents. Businesses can also take advantage of pricing and plans available through an energy supplier. In some states, only business customers have energy choice. Across the United States in 2016, the average business consumed 6,278 kWh of electricity per month and received an energy supply bill of nearly $655. Commercial electric bills can vary greatly by industry and business. Although homes come in all shapes and sizes, businesses have larger variations with diverse needs – from industrial buildings to mom-and-pop businesses. In June, the average business in Pennsylvania paid 8.93 cents per kWh. With this number, we can deduce that on average companies in Pennsylvania paid $560.63 that month for its energy supply. (cents per kWh for latest month available)

State August 2017 August 2016 % up/down % of U.S. avg. Rank
Alabama 11.6 11.03 5.2% 105.1% 39
Alaska 19.16 18.7 2.5% 173.6% 50
Arizona 10.92 11.1 -1.6% 98.9% 32
Arkansas 8.65 8.28 4.5% 78.4% 7
California 17.73 17.01 4.2% 160.6% 49
Colorado 10.41 10.2 2.1% 94.3% 27
Connecticut 16.12 15.36 4.9% 146.0% 47
DC 9.81 9.87 -0.6% 88.9% 20
Delaware 11.09 11.47 -3.3% 100.5% 37
Florida 9.52 9.05 5.2% 86.2% 16
Georgia 10.06 9.7 3.7% 91.1% 23
Hawaii 26.22 25.01 4.8% 237.5% 51
Idaho 8.25 8.02 2.9% 74.7% 3
Illinois 8.86 8.88 -0.2% 80.3% 9
Indiana 10.29 8.74 17.7% 93.2% 26
Iowa 11.61 11.24 3.3% 105.2% 40
Kansas 11.04 10.41 6.1% 100.0% 35
Kentucky 9.68 9.21 5.1% 87.7% 18
Louisiana 8.91 8.51 4.7% 80.7% 10
Maine 12.29 12.33 -0.3% 111.3% 41
Maryland 10.61 10.75 -1.3% 96.1% 29
Massachusetts 16.45 15.7 4.8% 149.0% 48
Michigan 11.07 10.74 3.1% 100.3% 36
Minnesota 11.01 10.16 8.4% 99.7% 33
Mississippi 10.06 9.3 8.2% 91.1% 24
Missouri 11.01 10.52 4.7% 99.7% 34
Montana 10.1 10.16 -0.6% 91.5% 25
Nebraska 9.44 9.53 -0.9% 85.5% 15
Nevada 8.08 7.98 1.3% 73.2% 1
New Hampshire 14.64 14.3 2.4% 132.6% 44
New Jersey 13.01 13.19 -1.4% 117.8% 42
New Mexico 10.82 10.64 1.7% 98.0% 31
New York 15.97 15.57 2.6% 144.7% 46
North Carolina 8.75 8.88 -1.5% 79.3% 8
North Dakota 9.86 9.57 3.0% 89.3% 21
Ohio 10.03 9.78 2.6% 90.9% 22
Oklahoma 8.29 8.16 1.6% 75.1% 4
Oregon 8.94 8.87 0.8% 81.0% 12
Pennsylvania 8.93 9.08 -1.7% 80.9% 11
Rhode Island 15.55 14.63 6.3% 140.9% 45
South Carolina 10.67 10.36 3.0% 96.6% 30
South Dakota 9.65 9.57 0.8% 87.4% 17
Tennessee 10.56 10.26 2.9% 95.7% 28
Texas 8.22 7.65 7.5% 74.5% 2
Utah 9.05 9.18 -1.4% 82.0% 13
Vermont 14.27 13.97 2.1% 129.3% 43
Virginia 8.41 7.85 7.1% 76.2% 5
Washington 8.43 8.27 1.9% 76.4% 6
West Virginia 9.34 9.2 1.5% 84.6% 14
Wisconsin 11.3 11.08 2.0% 102.4% 38
Wyoming 9.72 9.45 2.9% 88.0% 19

Understand the energy market

Due to the volatility of the energy market, energy supply prices may fluctuate throughout the year. From June 2017 to June 2016, Connecticut experienced the biggest fluctuation in Residential Energy Rate electric prices, while North Carolina and Montana have had the most consistent prices. Fluctuations in electricity supply prices may seem random, but there are a few primary factors that determine how much you pay. These factors are:

  • What time you use energy: Some energy suppliers offer plans with time-of-use discounts, such as free energy supply from 9 p.m. to 6 a.m.
  • What month you use it: In warmer states, summer rates can be higher than winter rates due to higher energy demand for cooling.
  • Where you live: Energy supply rates change from state to state and even among utility areas in the same state, regardless of whether the state has energy choice.

Where you live can affect your electricity rate

Based on the August 2017 data, if you live in Louisiana, you pay the lowest average residential electricity supply rates of any state in the country – 9.82 cents per kWh. The next lowest rate is in Washington, where residents pay an average of 9.85 cents per kWh. Below are the cheapest 10 states to live in based on residential electricity rates:

Rank State August 2017
1 Louisiana 9.82
2 Washington 9.85
3 Tennessee 10.58
4 Oklahoma 10.59
5 Arkansas 10.61
6 Kentucky 10.61
7 Idaho 10.63
8 Oregon 10.93
9 Mississippi 10.98
10 Texas 11.11

Below are the 10 most expensive states to live in based on residential electricity rates.

Rank State August 2017
1 Hawaii 28.76
2 Alaska 21.8
3 Connecticut 20.55
4 Massachusetts 19.94
5 New Hampshire 19.2
6 California 19.02
7 New York 18.59
8 Rhode Island 17.79
9 Vermont 17.72
10 Maine 15.96

The Future of Energy

Energy comes from many sources, including coal, natural gas, nuclear and renewables. As nonrenewable sources such as coal diminish, the need for renewable energy sources grows. Some states satisfy the country’s growing renewable energy needs with their production of wind, solar and hydropower.