January update: Where electricity rates rose the most

January update: Where residential electricity bills are increasing the most

2 min read

Electricity rates - and bills - increased in some states in our January rate report.

Residential electricity rates in the U.S. increased an average of 0.4 percent to 13.6 cents per kilowatt hour (kWh), according to the January Choose Energy Rate Report. As usual, prices changed broadly across the nation. Some states experienced double-digit percentage increases and others recorded double-digit percentage decreases.

The Rate Report reflects the latest data from the U.S. Energy Information Administration. The January report reflects rates from October 2020.

Delaware recorded the largest percentage rate increase. The price/kWh jumped 15.2 percent from the December report to 13.93 cents/kWh. Despite the increase, that rate was the 17^th lowest in the U.S.

Following are the states where rates increased by the largest percentage from the previous month.

Top 10 states where electricity rates increased

State	Rate (cents/kWh)	Rank	% change
Delaware	13.93	34	15.2
Illinois	13.98	36	12.7
Louisiana	10.57	5	8.3
Ohio	13.01	27	7.6
Indiana	13.98	37	7.2
Maryland	13.85	33	6.9
Mississippi	11.53	14	6.4
West Virginia	13	26	6.3
Kentucky	11.7	17	6.1
Tennessee	11.18	10	5.5

How the changes affect my electricity bills

Unfortunately, low rates don’t always mean low. The amount of power a customer consumes during a billing period affects bills as well. An example? Louisiana residents paid the fifth-lowest residential electricity rate in the January report – 10.57 cents/kWh, but their bills were the 17^th highest in the U.S. – $125.47. That’s because they use the most electricity on average each month.

So which state recorded the largest bill increase for the rates shown in the January report? Again, Delaware. Average bills there increased by $16.78 from the prior month. Here are the states where average bills increased by the largest amount.

Top states where average bills increased the most

State	Monthly avg. bill	Change
Delaware	127.04	$16.78
Illinois	96.74	$10.86
Louisiana	125.47	$9.61
Indiana	129.73	$8.72
Maryland	130.19	$8.46
West Virginia	133.38	$7.90
Mississippi	130.52	$7.81
Ohio	109.41	$7.74
Kentucky	123.08	$7.05
Tennessee	128.57	$6.67

Rates fell in 29 states

While the national average residential rate went up slightly in the January report, 29 states recorded drops in their electricity rates. The decreases were led by Nevada, where prices dropped 66 percent over the previous month to 4.07 cents/kWh. The decrease is the result of lower fuel costs and an agreement negotiated with the state utilities commission and other stakeholders.

Following are the states where rates decreased by the largest percentage:

Top 10 states where electricity rates decreased

State	Oct-20	Rank	% change
Nevada	4.07	1	-66.0
North Dakota	10.62	6	-14.1
New Mexico	13.35	31	-6.8
Utah	10.25	3	-6.2
Colorado	12.44	22	-5.8
Nebraska	11.36	11	-5.6
Minnesota	13.64	32	-5.5
Iowa	12.51	24	-4.9
Connecticut	22.68	48	-4.2
Florida	11.49	13	-4.0

Bills also didn’t go up everywhere. The biggest monthly drop shouldn’t be a surprise, given the state’s change in rates. It also was in Nevada, where residents on average saved $67.47. More common were the savings in New Jersey, where residents on average spent $2.75 cents less.

Following are the states where average bills decreased by the largest amount.

Top 10 states where bills decreased the most

State	October Avg. bill	Change
Nevada	34.76	-$67.47
North Dakota	112.89	-$18.60
Connecticut	156.49	-$6.83
Nebraska	108.72	-$6.41
New Mexico	82.10	-$6.03
Minnesota	102.03	-$5.98
Iowa	103.96	-$5.32
Hawaii	146.49	-$5.26
Florida	125.13	-$5.23
Colorado	84.34	-$5.15

Arthur Murray directs content strategy for ChooseEnergy.com, taking advantage of more than 20 years of newspaper and magazine experience. His articles have appeared on Zillow.com, Business.com, Nasdaq.com, and USNews.com, among others. Reach out to us with any questions or concerns.

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