In today’s day and age, electricity is a necessity. If you don’t use solar panels, you’ll depend on energy suppliers. However, the electricity prices by the state are different and, depending on your location, you might have to pay more than you wish.
Keep reading to explore various electricity prices across the US and decide whether you should try to reduce costs.
Find in this article:
- Which US state has the lowest electricity prices?
- Which US state has the lowest utility bills?
- What is the cheapest state when it comes to electricity?
- How much electricity costs by the state?
- What is the price of electricity by the state monthly?
Which State Has the Highest Electricity Rates?
Electricity rates vary across the US, with the average rate being around 10.42 cents per kWh. There are several reasons behind different prices, such as load factor, the type of energy generation, population density, time of year, and others. Overall, energy suppliers use complex models to determine their prices, which affects the final price you pay.
According to the electricity cost by the state, Hawaii has the highest electricity prices. At the moment, the price per kWh in Hawaii is around 35.57 cents for residential areas and 34.45 for business areas. For residential areas, that’s a 2.8% change compared to the previous month.
Alaska is the second most expensive state, where one kWh in a residential area costs 22.17 cents.
Which US State Has the Cheapest Electricity?
If you live in Louisiana or Washington, you’re in luck since you will pay the lowest electricity costs. In general, the price of one kWh in these states is around 9.7 and 9.35 cents, respectively. One of the reasons for such a low cost of electricity in Louisiana is that the company providing energy owns several power plants.
This means that the company directly produces electricity and doesn’t purchase it from another entity.
Regarding industrial electricity rates by state, Arkansas is also among the most affordable ones, with an average commercial electricity rate of 7.71 cents per kWh. It is followed by Oklahoma with 10.3 cents per kWh and Kentucky with 10.36 cents per kWh. Overall, the average industrial rate in the US is 10.09 cents.
Other states with affordable electricity rates are Arkansas, Idaho, Utah, Oklahoma, Kentucky, Tennessee, Mississippi, and Oregon, where prices hover around 10 cents per kWh.
What State Has the Lowest Utility Bills?
There are a few states where utility bills are low, while the lowest bills are in Washington. Other states with low electricity prices are West Virginia, Wyoming, Arkansas, Idaho, Oklahoma, Louisiana, and several others. The cost of electricity in these states ranges from 7.15 to a bit over 8 cents per kWh.
Additionally, multiple factors help these states offer the cheapest electricity in the US. For example, Washington utilizes hydroelectric power while West Virginia has abundant amounts of coal, same as Wyoming and Arkansas.
Furthermore, Idaho uses a couple of renewable sources, and Oklahoma relies on natural gas, just like Louisiana. In addition to natural gas, Louisiana also uses nuclear power and coal. Moreover, Utah and Kentucky use coal, and Iowa’s power comes from wind.
Where Is the Cheapest Place For Electricity?
If you have to move to another state, you might consider moving somewhere where electricity bills are low. The states to consider are North Dakota, Missouri, Louisiana, Arkansas, and Washington. They offer low costs of kilowatt per hour and are more affordable overall. Most of these states use natural resources to generate power, which is why bills are so low.
When it comes to electricity rates by city, Washington has the lowest costs of electricity, where a monthly bill can be around $79. Next is Alamos, New Mexico, with an average monthly bill of $87, followed by Winifred, Illinois, with similar costs. If you live in Windsor, Colorado, you can get an electricity bill up to $93, which is close to Rancho Santa Margarita, California, where bills are around $96.
What Is the Cost of Electricity by the State?
When it comes to state electricity profiles, the numbers mostly depend on the availability of natural resources and whether the market is regulated or deregulated. Based on the last available data, the average price for kWh in the US is around 10.59 cents. In Alabama, the average retail price is 9.84. In Alaska, you can expect to pay 19.82 cents per kWh, and in Arizona around 10.44.
The lower cost of electricity per kWh by the state can be found in Arkansas, Idaho, Iowa, Kentucky, Louisiana, Nebraska, Nevada, North Dakota, Oregon, Texa, Utah, Washington, and West Virginia. The prices in these states are around 8 cents per kWh, with Louisiana having the lowest price of 7.51 cents.
California is among the states with higher electricity costs at about 18 cents, while Alaska is close with 19.82 cents, according to EIA electricity prices by state.
Other states where you can expect to pay a higher electricity bill include Hawaii, with a retail price of 27.55, Connecticut with 19.13 cents, Rhode Island with 18.54, Massachusetts with 18.19, and California with 18.00 cents per kWh. Some states that are close to the national average are Colorado, Delaware, Florida, Kansas, Wisconsin, and Minnesota.
How Much Does Electricity Cost per Month by the State?
When it comes to monthly electricity costs, Utah has the lowest monthly electricity bill of about $78.13. New Mexico and Wyoming are close, with $87.57 and $92.37, but slightly less than the average monthly usage. In Montana, you will have to pay about $95.58, and Colorado is right behind, with a monthly bill of $96.06.
If you live in Illinois, your monthly electricity cost will be around $97.55, and if you live in Washington, you’re looking at $97.58. Furthermore, Idaho, Wisconsin, and Minnesota have monthly bills over $98.
You’ll find the highest electricity rates by zip code in Hawaii—$191.01. Other more expensive states are Rhode Island, Connecticut, and Massachusetts, with $149.15, $148.24, and $146.29 monthly costs. Moreover, Texas, South Carolina, Arizona, and Massachusetts have electric bills of around $140.
If you live in a state with high monthly bills, you can try to reduce the amount of power you use. In case you’re located in a deregulated market, select the best electricity provider to lower your costs.
If you’re looking to move, the wholesale electricity prices by state data will help you make the right decision about where to go. You can choose a location that offers more affordable electricity prices and save some money in the long run.