Electricity Rates by State

How much does electricity cost?

According to the latest data from the Energy Information Administration (EIA), the average electricity rate in the United States is 18.44 cents per kilowatt-hour (kWh). But is this truly how much Americans are paying nationwide? The Choose Energy team dug into the data to find out how much consumers are actually paying for electricity — and which factors have the greatest impact.

Diving deeper into state-level data shows that electricity rates vary widely across the country, making location a major factor in your energy costs. In May 2026, Idaho had the lowest average residential electricity rate at 12.35 cents per kWh. On the other end of the scale, Hawaii had the highest average residential electricity rate at 52 cents per kWh.

The table below compares average residential electricity rates by state using the latest available EIA data. Rates are listed in cents per kilowatt-hour (kWh). Rankings are ordered from lowest to highest residential electricity rate.

Electricity source data reflects each state’s leading electricity generation source based on EIA data. Residential electricity rates and generation source data may reflect different EIA reporting periods.

Each state has different circumstances that impact its energy production and consumption, but a common thread among many low-cost states is that they produce more electricity than they need. Excess supply can lead to lower retail electricity costs for residents.

The table below shows the 10 states with the lowest average residential electricity rates in May, according to the latest available EIA data. Rates are listed in cents per kilowatt-hour (kWh).

New England is heavily represented among the 10 most expensive states for residential electricity. High population density, harsh winters and limited in-state electricity production can all contribute to higher retail electricity rates. Maine, Massachusetts and Vermont, for example, often rely on imported electricity from other states or Canada to meet demand.

Hawaii’s high electricity prices are tied to its geographic isolation and reliance on imported petroleum. Petroleum remains the state’s leading electricity source, although Hawaii has set a goal to source 100% of its electricity from renewable energy by 2045.

The table below shows the 10 states with the highest average residential electricity rates in May, according to the latest available EIA data. Rates are listed in cents per kilowatt-hour (kWh).

Regional trends show a similar story of electricity rates varying by location. Unsurprisingly, the Pacific Noncontiguous area has the highest regional electricity rate, driven by Hawaii and Alaska’s expensive energy costs. The Mountain and Central regions remain relatively moderate, as they tend to have sufficient supply to meet demand, thanks to an abundance of resources and lower population density.

Retail energy costs can’t be boiled down to one factor, and each state has its own unique set of circumstances that influence how much residents pay for electricity. But we can derive a few key takeaways from this data:

• Energy costs vary greatly by state and region.
• Extreme weather can elevate electricity demand and subsequently costs.
• High population density creates greater demand for electricity.
• States that overproduce energy often enjoy cheaper rates.
• States that rely on importing electricity tend to have higher costs.

The table below estimates monthly electricity bills by state using average residential electricity rates and average monthly household electricity usage data from the U.S. Energy Information Administration (EIA). In May, Hawaii ranked highest with an estimated monthly bill of $257.40, while New Mexico ranked lowest at $92.34. The estimated U.S. average monthly electric bill was $159.14.

In many states, electricity markets are deregulated for both residential and commercial customers. Business owners in deregulated areas can choose their electricity supplier and plan, making it easier to compare commercial electricity rates.

Business electricity rates vary by industry, building size and usage needs. A deregulated electricity plan can help business owners compare options that fit their operations, from industrial facilities to small businesses.

In May 2026, Hawaii ranked highest for commercial electricity rates at 46.19 cents per kWh, while North Dakota ranked lowest at 7.38 cents per kWh. The U.S. average commercial electricity rate was 13.54 cents per kWh. Hawaii also had the largest year-over-year increase, with commercial rates rising 28.95% from May 2025.

The mix of energy sources used to generate electricity can influence how much residents pay for power. States that rely on abundant local resources, such as natural gas, wind, hydroelectric power or coal, may have different cost structures than states that import more fuel or electricity from other regions.

Electricity generation in the U.S. comes from a mix of fossil fuels, nuclear power and renewable resources. Natural gas remains the largest source of U.S. electricity generation, while renewables such as wind, solar and hydroelectric power continue to play a growing role in many state energy markets.

Generation source is only one factor behind electricity prices. State rates can also be affected by fuel costs, transmission infrastructure, weather, demand, regulations and how much electricity a state imports or exports.

Natural gas

Natural gas is the largest source of electricity generation in the U.S. and plays a major role in many state electricity markets. States with access to natural gas production or nearby generation resources may have different pricing dynamics than states that rely more heavily on imported power or fuel.

Coal

Coal still contributes to the U.S. electricity mix, although its share has declined over time as natural gas and renewable generation have grown. In states where coal remains a leading electricity source, fuel costs, plant retirements and environmental regulations can affect long-term electricity prices.

Nuclear power

Nuclear power provides a steady source of electricity in several states. Because nuclear plants can operate around the clock, they can help support grid reliability, but plant maintenance, operating costs and state-level generation capacity can influence how nuclear power affects local electricity markets.

Wind power

Wind power is an important renewable resource in states with strong wind conditions and large generation capacity. Wind-heavy states may benefit from low fuel costs, although transmission access and grid demand also affect how that generation translates into retail electricity rates.

Solar power

Solar power continues to grow in states with strong sunlight and supportive energy policies. Solar generation can help diversify a state’s electricity mix, but its impact on customer rates depends on factors such as grid infrastructure, storage, demand patterns and utility-scale investment.

Hydroelectric power

Hydroelectric power is a major resource in states with large rivers, dams and water infrastructure. Because hydroelectric generation does not require fuel purchases, it can help support lower-cost electricity in some regions, although output can vary with water conditions and seasonal demand.

The following states and the District of Columbia have deregulated electricity markets, meaning customers have the freedom to choose the company that provides their electricity or natural gas from a range of competitive suppliers. Click on your state in the following list to check current electricity rates.

Why do electricity rates vary so much by state?

There’s no single factor that determines electricity rates in each state. Instead, it’s a case-by-case basis that involves regional differences, weather patterns, in-state electricity generation, and power grid conditions.

Which region has the highest and lowest electricity prices?

Generally, New England has the highest electricity prices, and the central regions have the lowest.

Why are commercial rates usually lower than residential?

Commercial energy rates are lower because businesses use more electricity than residents and buy in bulk.

How do energy sources affect state electricity prices?

The availability of resources plays a role in reducing energy costs. Some states have greater access to natural resources that make producing electricity easier. Texas, for example, has abundant natural gas, wind, and sunshine, and subsequently produces a significant amount of each source.

Do deregulated states always have lower prices?

Deregulated states don’t necessarily have lower prices, but residents in these states can often find savings due to energy competition. Retail electric providers often offer lower prices and competitive features to win your business against other companies.

How can customers estimate their monthly bill from cents per kWh?

Determine how many kilowatt-hours (kWh) of electricity you use each month and multiply this number by your electricity rate. This calculation should give you an idea of how much you’ll pay each month. Keep in mind that you’ll also pay a delivery fee from your utility company and taxes.

Are you a journalist or researcher writing about this topic who needs to know more about historical rates? Send us details about what you need, and we’ll get back to you with an answer and a relevant quote from one of our rate experts. You should also check out the Choose Energy Data Center for more statistics and analyses on energy in the U.S.

Topics in our Data Center include:

• The cost of fueling your car with gasoline vs. electricity in your state.
• The cost of natural gas in your state.
• Your state’s carbon footprint.
• The sources of electricity in your state.
• Solar energy, wind energy, and nuclear energy generation by state.
• The cost of solar panels.