Average Electric Bill by State

How state electricity rates compare

Electricity rates vary by more than 4x across U.S. states. According to the U.S. Energy Information Administration (EIA), residential rates range from under 10¢/kWh in the cheapest states to over 40¢/kWh in Hawaii.

Several factors drive these differences:

• Generation mix: States with abundant hydropower (Washington, Idaho) or cheap natural gas have lower generation costs than states relying on imported oil or expensive renewables.
• Grid infrastructure: Older, larger, or more geographically challenging grids cost more to maintain.
• Regulatory environment: State policies on utility profits, renewable mandates, and rate structures affect prices.
• Geographic isolation: Hawaii and Alaska pay premiums for fuel transport and grid isolation.
• Climate: Regions with extreme heating or cooling needs may have higher infrastructure and peak demand costs.

All 50 states ranked by average residential rate

The following table shows average residential electricity rates by state, estimated monthly bills at 900 kWh (typical U.S. household usage), and whether the state has retail electricity choice.

Source: EIA average residential electricity prices. Rates are approximate state averages; actual rates vary by utility territory within each state.

The 5 most expensive states for electricity

1. Hawaii (~43¢/kWh)

Hawaii's extreme rates stem from geographic isolation. The islands have no natural gas pipelines and limited fossil fuel resources. Electricity is generated primarily from imported petroleum, shipped thousands of miles. High operating costs, small grid scale, and expensive renewable integration compound the baseline cost disadvantage.

2. California (~30¢/kWh)

California's rates reflect aggressive climate policies, high utility infrastructure costs (including wildfire mitigation), expensive real estate and labor markets, and extensive renewable mandates. The state's partial deregulation in the early 2000s led to a market crisis; today's market is heavily regulated with limited residential choice.

3. Massachusetts (~27¢/kWh)

New England states face high rates due to constrained natural gas pipeline capacity (limiting cheap fuel supply), aging infrastructure, expensive transmission from distant generation sources, and strong renewable portfolio standards. Massachusetts has retail choice, but competitive rates still reflect underlying wholesale costs.

4. Connecticut (~26¢/kWh)

Similar factors as Massachusetts: natural gas constraints, high infrastructure costs, and policy-driven renewable requirements. Connecticut's deregulated market offers supplier choice, but savings relative to default rates are modest given high baseline costs.

5. Rhode Island (~25¢/kWh)

The smallest state shares New England's structural cost challenges. Limited generation within state borders, transmission constraints, and high-cost regional wholesale markets keep rates elevated despite deregulation.

The 5 cheapest states for electricity

1. Idaho (~9¢/kWh)

Idaho benefits from abundant hydroelectric power. The Snake River and other water resources provide cheap, renewable generation. Low population density means modest infrastructure demands. No deregulation — the utility model works fine when rates are this low.

2. Utah (~10¢/kWh)

Utah combines coal-fired generation (cheap fuel), access to Western hydropower, and relatively low infrastructure costs. The state has no retail choice, but low regulated rates make that less consequential.

3. Wyoming (~10¢/kWh)

Wyoming is a major coal producer, and locally mined coal keeps generation costs low. Low population density and straightforward grid infrastructure keep delivery costs modest.

4. Washington (~10¢/kWh)

The Columbia River and Bonneville Power Administration provide cheap hydroelectricity to much of the Pacific Northwest. Washington's large hydropower capacity keeps rates among the nation's lowest.

5. North Dakota (~10¢/kWh)

Abundant wind resources and coal generation provide cheap electricity. Low population density and minimal transmission constraints keep infrastructure costs low.

Deregulated state opportunities

In 14+ states plus DC, electricity deregulation allows you to choose your generation supplier. The states with full or substantial residential choice include:

• Texas — largest deregulated market; extensive competition
• Pennsylvania — full choice; competitive rates often beat default
• Ohio — full choice in most territories
• Illinois — full choice
• New York — full choice in most territories
• New Jersey — full choice
• Maryland — full choice
• Connecticut — full choice
• Massachusetts — full choice
• Maine — full choice
• New Hampshire — full choice
• Rhode Island — full choice
• Delaware — full choice
• District of Columbia — full choice

In these states, competitive suppliers can offer rates 10-30% below the utility's default rate. At 900 kWh/month, saving 2¢/kWh means $18/month or over $200/year.

Why state averages can mislead

State-level averages are useful for comparison but have limitations:

• Within-state variation: Rates differ significantly by utility territory. In Texas, rates in Houston differ from Dallas. In Pennsylvania, PECO (Philadelphia) differs from PPL (Lehigh Valley).
• Default vs. competitive rates:In deregulated states, the “average” rate includes both customers paying default rates and those who've shopped for competitive rates. Your actual options may be higher or lower than the average.
• Usage-weighted effects: State averages can be skewed by commercial and industrial rates, which differ from residential.
• Seasonal and temporal variation:Rates change over time. A state's average from last year may not reflect current pricing.

Frequently asked questions

Why is electricity so expensive in Hawaii?

Hawaii has the highest electricity rates in the U.S. (over 40¢/kWh) primarily because it imports most of its fuel — there's no natural gas pipeline and limited fossil fuel resources. Electricity is generated mostly from petroleum, which must be shipped to the islands. Geographic isolation, small grid scale, and high operating costs all contribute. Renewable energy is growing but hasn't yet offset the structural cost disadvantage.

Will my electric bill change if I move to another state?

Almost certainly yes. Moving from a high-rate state like California (30¢/kWh) to a low-rate state like Texas (14¢/kWh) could cut your bill in half at the same usage level. However, usage often changes too — moving from mild San Diego to hot Houston means more AC usage. Consider both rate differences and climate when estimating bills in a new location.

Are deregulated states cheaper than regulated states?

Not necessarily overall, but deregulation gives you the opportunity to beat the default rate. Some deregulated states (Texas, Ohio, Pennsylvania) have moderate rates with competitive options below the default. Others (Massachusetts, Connecticut) have high rates even with competition. The value of deregulation is choice, not automatically lower prices — it's up to you to shop and compare.

How accurate are state-average bill estimates?

State averages are useful for comparison but may not match your situation. Within any state, rates vary by utility territory — sometimes by 30% or more. Your actual rate also depends on your specific usage level, rate structure, and in deregulated states, which supplier you choose. Use state averages as a rough benchmark, then look up rates in your specific utility territory for accuracy.

Where can I find current rates for my specific state?

The U.S. Energy Information Administration (EIA) publishes monthly state-level residential electricity prices at eia.gov. For your specific utility, check your utility's website or your most recent bill. In deregulated states, state comparison sites (like PA Power Switch in Pennsylvania or Power to Choose in Texas) list available supplier rates.