Which state has the lowest electricity rate for businesses?

Choose EnergyNewsWhich state has the lowest electricity rate for businesses?

When businesses consider sites for new locations – and large numbers of jobs, one important but often overlooked factor is the cost of commercial electricity in a state. Residential rates and commercial/industrial rates differ – sometimes by wide margins. And a low commercial electricity rate can move a location to the head of the line, all other factors being equal.

Which state has the lowest commercial rates? According to the U.S. Energy Information Administration, it’s Oklahoma, with a rate of 7.66 cents per kilowatt hour (kWh). That number is for November 2017, the most recent month for which statistics are available.

Which state has the highest rates? That would be Hawaii, where the price is 28.32 cents/kWh.

Here’s why it matters: The EIA says businesses, on average, use 6,278 kwh of electricity per month. That means the average monthly bill in Oklahoma was $480.89 compared with $1,777.93 in Hawaii.

Here are the 10 states where the commercial rate is the cheapest:

State November October % increase/decrease
Oklahoma 7.66 8.11 -5.5%
Idaho 7.91 8.2 -3.5%
Nevada 8.11 8.59 -5.6%
Utah 8.14 8.76 -7.1%
Virginia 8.16 8.43 -3.2%
North Carolina 8.3 8.77 -5.4%
Arkansas 8.4 8.31 1.1%
Texas 8.4 8.2 2.4%
Nebraska 8.49 8.61 -1.4%
Missouri 8.59 8.77 -2.1%


Here are the 10 states where the commercial rate is the most expensive:

State November October % increase/decrease
Hawaii 28.32 26.71 6.0%
Alaska 19.13 19.2 -0.4%
Connecticut 16.12 16.83 -4.2%
Rhode Island 15.83 15.51 2.1%
California 15.16 16.98 -10.7%
Massachusetts 14.92 15.29 -2.4%
Vermont 14.91 14.7 1.4%
New Hampshire 14.76 15.17 -2.7%
New York 13.9 15.03 -7.5%
Maine 12.22 12.25 -0.2%



But the numbers for November don’t tell the whole story. Trends also are important.

Following are the states where the rate increased the most from October to November:

State November October % increase/decrease
Hawaii 28.32 26.71 6.0%
Wisconsin 11.06 10.67 3.7%
South Carolina 10.41 10.08 3.3%
Iowa 8.99 8.73 3.0%
Kentucky 9.93 9.66 2.8%
Michigan 11.11 10.82 2.7%
Tennessee 10.52 10.26 2.5%
Texas 8.4 8.2 2.4%
Mississippi 10.52 10.27 2.4%
Rhode Island 15.83 15.51 2.1%


Following are the states where the rate decreased the most from October to November:

State Nov-17 Oct-17 % increase/decrease
Delaware 9.94 12.04 -17.4%
California 15.16 16.98 -10.7%
Arizona 9.94 10.97 -9.4%
New York 13.9 15.03 -7.5%
Utah 8.14 8.76 -7.1%
Minnesota 10.03 10.73 -6.5%
North Dakota 8.67 9.19 -5.7%
Nevada 8.11 8.59 -5.6%
Oklahoma 7.66 8.11 -5.5%
North Carolina 8.3 8.77 -5.4%


Go here for the full list of commercial rates by state, as well as residential rates.

(Photo courtesy of flickr user/Clinton Steeds)