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:
Here are the 10 states where the commercial rate is the most expensive:
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:
Following are the states where the rate decreased the most from October to November:
Go here for the full list of commercial rates by state, as well as residential rates.
(Photo courtesy of flickr user/Clinton Steeds)