Which states have the best business electricity rates?

Companies in Oklahoma get the best deal on electricity among states in the U.S., according to the April Choose Energy® Rate Report and Business Index, both based on the latest information from the U.S. Energy Information Administration. Commercial rates in the state were 7.10 cents per kilowatt hour – the nation’s lowest – and industrial rates were 4.85 cents/kWh – the country’s second lowest.

That meant businesses paid rates that are, on average, 70.8 percent of the U.S. average. Contrast that with Hawaii, where the combined rates are 340.1 percent higher than the national mean.

Following are the states where businesses paid the lowest rates for business energy, their combined commercial and industrial rates, and the percentage of the U.S. combined average – 16.87 cents/kWh:

Hawaii, as mentioned earlier, had the most expensive combined rate – 57.37 cents/kWh, while Alaska came in second at 36.19 cents/kWh. Following are the 10 continental states with the highest rates for businesses, their combined commercial and industrial rates, and the percentage of the U.S. combined average:

Overall, business electricity rates have declined 3.3 percent from the same month of 2018. The largest decline was in Georgia, where the combined rate fell 14.8 percent.

Following are the 10 states where rates fell the most:

But of course, rates didn’t fall everywhere. Rates increased the most year-over-year in Hawaii. Following are the next 10 states where business electricity rates went up the most:

Oklahoma, which reported the best business energy prices, gets the largest percentage of its electricity from natural gas. The Sooner State also produced the fourth-most natural gas during the month.

Following are the 20 states with the lowest rates for electricity, the largest source of that power, and the percentage generated by that source:

Of the 20, coal was the leading factor in generation for eight states, while natural gas was the top source for electricity in five states in addition to Oklahoma.

What were the electricity sources in the state’s with higher rates? Hawaii got 70 percent of its electricity from petroleum. The only other state that gets more than 10 percent of its power from petroleum is Alaska.

Following are the 10 states with the lowest rates for electricity, the largest source of that power, and the percentage generated by that source:

For complete commercial rates by state, see the Choose Energy® Electricity Rates by State page. For more on business rates, see the Choose Energy® Business Energy Index. And for more information on various sources of electricity in each state, see the Choose Energy® Data Center.

Arthur directs ChooseEnergy.com’s newsroom, taking advantage of nearly 30 years of newspaper and magazine experience. A native of Virginia, Arthur attended the University of North Carolina at Chapel Hill and graduated with a bachelor’s in journalism. Reach out to us with any questions or concerns.