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 18.83 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 regional data shows that electricity rates vary greatly by state, making location a major factor in your energy costs. Right now, North Dakota residents enjoy the lowest energy costs, with prices averaging 11.95 cents/kWh. On the other side of the scale, Hawaii has the highest average energy rate of 42.23 cents/kWh.

Each state has different circumstances that impact its energy production and consumption, but a common thread among these low-cost states is that many produce more electricity than they need. North Dakota, Nebraska, Iowa, Oklahoma, and Wyoming all produce more electricity than they consume and export the excess to other states. Excess supply can lead to lower retail electricity costs for residents.

New England is heavily represented in the top 10 most expensive states for residential electricity. A couple of factors influence New England’s inflated energy prices, including high population density, harsh winters, and insufficient in-state production. Maine, Massachusetts, and Vermont, for example, rely on importing electricity from other states or Canada to meet the demand.

Hawaii’s high price is tied to its geographical isolation and reliance on imported petroleum. In 2024, petroleum accounted for 65% of Hawaii’s total electricity generation, but a shift toward renewables is on the horizon as the state aims to source 100% of its electricity from renewables by 2045. Currently, the state gets 33% of its energy from renewable sources.

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.

In many states, the energy market is deregulated for both residential and commercial customers. Business owners in deregulated areas can choose their energy supplier and plan, making it easier to find the cheapest commercial electricity rate available.

Business electricity rates vary greatly by industry and function. Although homes come in all shapes and sizes, businesses have a broader, more diverse set of needs. A deregulated energy plan can help business owners find a plan that fits their unique circumstances, from industrial buildings to small businesses.

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 mix of energy sources that power our homes and businesses has undergone significant development in recent years. As many states move to incorporate renewable resources, the reliance on fossil fuels is slowly decreasing — but they’re far from gone. Many states still heavily depend on nonrenewable resources like coal and natural gas to meet their energy needs.

Explore which energy sources are present in today’s market and which state is the top producer.

Natural gas

Natural gas is the top energy source in the U.S., accounting for around 41% of electricity generation in 2025. Texas produces the most natural gas in the country, far surpassing other states. In 2024, Texas produced 13 trillion cubic feet of natural gas, which was about 28% of the nation’s total production.

Coal

The use of coal has declined in recent years and now accounted for only about 13% of U.S. electricity generation In March 2026. Texas generated 4,192 thousand megawatt hours (MWh) of electricity from coal energy. Indiana and Kentucky followed close behind with 3,590 and 3,122, respectively.

Nuclear power

Nuclear power generates electricity through nuclear fission, using heat from splitting atoms to produce steam that turns turbines connected to electric generators. In March 2026, Illinois generated the most nuclear electricity, with 7,797 thousand megawatt hours (MWh), accounting for 50.3% of the state’s electricity generation. Pennsylvania followed with 6,506, while South Carolina produced 4,262 and generated 51.5% of its electricity from nuclear power.

Wind power

Wind power is harnessed by wind turbines that use wind’s kinetic energy to turn an electric generator. Texas is making huge strides in the renewable energy industry, producing the most wind energy in the nation as of 2024. Texas has the capacity to generate 18,500 MW of electricity through wind energy and expects to add another 5,000 megawatts of wind generation capacity from facilities currently under construction.

Solar power

Solar energy is captured by panels with photovoltaic cells that convert sunlight into electricity. California leads the nation in solar generation, with around 22,200 megawatts of utility-scale solar power capacity.

Hydroelectric power

Hydroelectric power generates electricity by using moving water to turn turbines connected to electric generators. Washington state produces the most hydroelectric power in the country, thanks to the Grand Coulee Dam, the largest power plant in the U.S.

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.