02.24.2020

Electricity Rates By State

Electricity rates are not usually something that most people think about every day until the end of the month when the unpleasant surprise arrives in the form of an energy bill. If you’ve always wondered why your electric bill varies from time to time, who is the company whose letterhead your bill arrives on and how do the average electricity rates by state vary on average, we have the answers.

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The Cost of Electricity by State

To understand why the average electricity rates by state vary, let’s look at the stages that the electric power passes from being generated to powering your house. electricity prices by state Conditions for these stages are different in every state. For example, the more it costs in a particular area to generate energy, the more it will cost per kilowatt-hour (per kWh). Hawaii has the most expensive electricity because its surrounded by nothing but the ocean, it has to import almost all of its energy sources, which adds greatly to the costs. It’s hard to enjoy sipping from a coconut shell on the beach when your electric bill consumes a big chunk of your monthly income.

Interactive Map for Energy Rates by State

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The national average retail electricity price per kWh is 10.48 cents per kilowatt hour. In comparison, the ten highest average residential electricity rates by state are as below:
No State Average retail price (cents per kWh) Average monthly bill (based on 1000 kWh usage)
1 Hawaii 29.18 $291.80
2 Alaska 19.36 $  193.60
3 Massachusetts 18.50 $  185.00
4 Connecticut 18.41 $  184.10
5 Rhode Island 18.10  $  181.00
6 New Hampshire 17.01 $ 170.10
7 California 16.58 $ 165.80
8 Vermont 15.13 $ 151.30
9 New York 14.83 $ 148.30
10 Maine 13.44 $ 134.40
Data source: U S Energy Information Administration On the other side of the spectrum are the ten cheapest average residential electricity rates per kWh by state:
No State Average retail price (cents per kWh) Average monthly bill (based on 1000 kWh usage)
1 Louisiana 7.71 $  77.10
2 Arkansas 7.78 $  77.80
3 Washington 8.00 $  80.00
4 Oklahoma 8.09 $  80.90
5 Wyoming 8.09 $  80.90
6 Idaho 8.17 $  81.70
7 Utah 8.21 $  82.10
8 Texas 8.48 $  84.80
9 Kentucky 8.52 $  85.20
10 Nevada 8.67 $  86.70
Data source: U S Energy Information AdministrationAre electricity prices going up or down? The truth is that it varies across the states. You can find your state in the below table to check if you are paying a higher average price per kWh for electricity than last year.
State Average Electric Rate Price in 2019 (cents per kWh) Average Electric Rate Price in 2018(cents per kWh) Percentage Change from Previous Year Average Monthly Electricity Cost*
Alabama 12.75 12.33 3.40% $114.77
Alaska 23 22.09 4.10% $207.00
Arizona 12.6 12.79 -1.50% $113.36
Arkansas 9.86 9.87 -0.20% $88.72
California 19.17 18.69 2.60% $172.55
Colorado 12.27 12.13 1.20% $110.43
Connecticut 22.17 21.31 4.00% $199.51
Delaware 12.83 12.73 0.80% $115.49
Florida 11.96 11.6 3.10% $107.65
Georgia 11.54 11.54 0.00% $103.86
Hawaii 32.32 32.28 0.10% $290.86
Idaho 9.95 10.24 -2.90% $89.55
Illinois 12.99 12.72 2.10% $116.91
Indiana 12.41 12.17 1.90% $111.65
Iowa 13.12 12.68 3.50% $118.08
Kansas 12.77 13.29 -4.00% $114.92
Kentucky 10.7 10.56 1.30% $96.33
Louisiana 9.55 9.46 1.00% $85.98
Maine 16.77 16.36 2.50% $150.93
Maryland 13.23 13.37 -1.00% $119.07
Massachusetts 21.99 21.57 1.90% $197.90
Michigan 15.82 15.55 1.80% $142.41
Minnesota 13.38 13.37 0.10% $120.39
Mississippi 11.38 11.32 0.50% $102.45
Missouri 10.92 11.29 -3.30% $98.26
Montana 11.49 11.2 2.60% $103.42
Nebraska 11.06 10.92 1.30% $99.52
Nevada 12.11 12.02 0.70% $108.98
New Hampshire 20.17 19.69 2.40% $181.50
New Jersey 15.93 15.46 3.10% $143.40
New Mexico 12.65 12.72 -0.60% $113.83
New York 17.97 18.59 -3.30% $161.69
North Carolina 11.65 11.31 3.00% $104.87
North Dakota 10.86 10.68 1.70% $97.72
Ohio 12.24 12.48 -2.00% $110.12
Oklahoma 10.23 10.42 -1.80% $92.06
Oregon 11.04 11 0.40% $99.35
Pennsylvania 13.83 14.01 -1.30% $124.47
Rhode Island 21.86 20.52 6.50% $196.70
South Carolina 12.71 12.55 1.30% $114.37
South Dakota 11.78 11.76 0.20% $106.06
Tennessee 10.82 10.73 0.80% $97.37
Texas 11.85 11.37 4.30% $106.68
Utah 10.53 10.5 0.30% $94.77
Vermont 17.58 18.03 -2.50% $158.22
Virginia 12.09 11.88 1.70% $108.77
Washington 9.68 9.72 -0.40% $87.10
West Virginia 11.37 11.38 -0.10% $102.33
Wisconsin 14.72 14.36 2.50% $132.50
Wyoming 11.37 11.48 -0.90% $102.32
Data source: U S Energy Information Administration *Based on the estimated electricity usage of 900 kWh per month.

Energy Deregulation by State

Imagine that you would only be able to buy groceries from one supermarket – the one closest to your house – and as a result, this supermarket would be able to charge you a lot higher prices. This was the state of the energy industry in the US, before deregulation and energy choice. In 1978, the federal government passed the Public Utility Regulatory Policies Act (PURPA), leaving it up to individual states to decide how to supply energy to energy users; but it wasn’t until the late nineties when the first deregulated states, California, Texas, Rhode Island, New York, Pennsylvania, and Massachusetts grew into true competition energy markets. What energy deregulation means in practice for the customers in 18 US deregulated states is that, though your state utility still has the mandate to deliver electricity to your home and ensure the operability of the electric grid, you have the right to choose who will supply the electricity, based on competitive electricity prices. Because of the complexity of such a decision, you can use a website, like ElectricRate to help you make the right energy choice. We review, compare and vet the majority of the retail electric providers. All you need to do is to enter your zip code and see what residential electricity rates and energy offers are available in your area.

How is Energy Generated?

There are generally two types of energy sources that are used to power your household or a business: In the US, the majority of consumed energy by the residents come from non-renewable sources, such as crude oil, natural gas, and coal. However, consumption of renewable energy is steadily growing, as a result of the decreasing technology costs and growing concern over the environment. us energy production by source Source: U S Energy Information Administration In fact, more than half of the US states have in place something called a Renewable Portfolio Standard (RES), that requires energy providers to source a certain amount of energy from renewable sources. As a result, retail energy suppliers are obligated to offer at least one partially or fully renewable energy plan in the energy markets. If you are not keen to get your energy from non-renewable power plants, you can compare the green energy rates by state on Electric Rate. Wondering what’s the greenest state? It is officially Vermont with the highest share of in-state electricity net generation produced by renewable resources – 99.7% in 2018 and almost no reportable CO2 emissions generated by the power industry. Well done, Vermont!

Understanding Your Electric Bill

You could be missing out on some great monthly savings by not questioning every tiny detail of your bill. Let’s look at its key components:

Understand Your Energy Tariff

How you are billed for electricity actually matters a lot. An electric supplier can bill you a fixed rate every month, or let the energy prices fluctuate. Below is a brief overview of the most commonly offered energy rates:
third party energy suppliers Fixed Term Plans – This plan will lock the price you pay per kWh for the duration of the contract, no matter how much the wholesale electricity price varies. These plans are most often the cheaper option, but usually  carry cancellation fees, if you decide to exit the contract early.
best electricity supplier in my area Variable Rate Plans – There is no locked in rate and the price you pay for a unit of electricity might be cheaper one month and more expensive the next month. The plus side is that there is no commitment to stick to it for a fixed period and you can switch anytime.
electric utility by zip code Green / renewable plans – If you are concerned about your carbon footprint, many electric suppliers offer you the choice of an energy plan, sourced entirely or partially from renewable energy, such as wind or solar. These plans can have either variable- or a fixed rate form.
alternative electric suppliers Prepaid plans – This plan lets you pre-purchase power for your home at a set price, like a prepaid cell phone. This isn’t for the forgetful ones – if you don’t remember to top up your plan, you might find yourself without electricity half-way through a hot shower.

Know What Makes Up Your Final Charge

The electricity price is always expressed in units, such as cents per kilowatt hour. When you multiply the price by your average monthly usage, you should get a good idea about the bill you can expect at the end of the month. The other component of your bill will be the transmission and delivery service charges by your utility, which will remain the same, even if you switch to a retail electric supplier. By switching, the part of the bill that will vary will be the electric supply charge.

Know Your Usage

The advertised electricity rates you will find on electric suppliers’ websites are almost always based on specific energy usage and they vary, according to how much electricity do you use on a regular basis. The key to avoiding unnecessarily high energy costs is having a good idea about how many kWh / month does your household or business use. The easiest way to find out how much power you use is to look at one of your energy bills, but there are also various online tools to help you estimate it. For comparison, a U S residential customer consumes an average of 914 kWh per month.

Understand your energy needs

You might not be able to influence, that the average price of the state electricity rates in South Carolina is 12.71 cents kWh, but only 11.65 cents kWh in North Carolina. However, there are multiple factors that influence electricity prices and it’s good to be aware of them:
  • Time of use: Some competitive suppliers offer plans with free energy at nights or during weekends
  • Time of month: In states with cold winters, such as North Dakota or South Dakota, the energy prices can be higher during the winter months and in warm states, such as New Mexico, the energy rates will be higher in the summer months, due to extensive air-conditioning use
  • Where you live: If you live in one of the deregulated states, such as Connecticut, New York, you will always have the option to switch to a competitive electric supplier and pay lower residential electricity rates.
The rest is your energy choice! One thing is for sure – don’t wait to compare available energy rates. You might find a great deal in your state.

Electricity for Business

In the states with energy choice, business customers are able to take advantage of cheaper rates too. On average, an American business consumes approximately 6,189 kilowatt-hours of electricity per month for which it pays monthly an average price of $660.32. Let’s have a look at the average electricity rates by state for commercial and residential customers. Don’t be surprised at the price difference for residential electricity rates in the United States!
State Commercial – Average Electricity Rate (cents per kWh) Industrial – Average Electricity Rate (cents per kWh)
Alabama 11.90 6.08
Alaska 20.23 17.09
Arizona 9.42 5.92
Arkansas 8.59 5.73
California 17.10 14.28
Colorado 9.68 6.81
Connecticut 15.53 13.20
Delaware 9.93 6.98
Florida 9.91 7.89
Georgia 9.74 5.55
Hawaii 28.83 24.82
Idaho 7.42 5.15
Illinois 9.01 6.49
Indiana 10.92 7.47
Iowa 9.57 5.70
Kansas 10.22 7.11
Kentucky 10.34 5.60
Louisiana 8.93 5.07
Maine 12.69 10.12
Maryland 9.78 7.65
Massachusetts 15.99 14.40
Michigan 11.44 7.36
Minnesota 9.75 7.33
Mississippi 10.94 6.13
Missouri 8.09 6.06
Montana 10.78 5.08
Nebraska 8.76 7.12
Nevada 7.82 5.04
New Hampshire 15.81 12.89
New Jersey 11.78 9.69
New Mexico 9.89 5.37
New York 13.43 5.42
North Carolina 10.81 5.86
North Dakota 8.65 8.53
Ohio 9.50 6.12
Oklahoma 7.48 4.54
Oregon 8.91 6.13
Pennsylvania 8.86 6.32
Rhode Island 15.87 15.06
South Carolina 10.81 5.90
South Dakota 9.25 7.55
Tennessee 10.59 5.48
Texas 8.19 5.63
Utah 7.86 5.58
Vermont 16.47 10.93
Virginia 8.20 6.87
Washington 8.75 4.87
West Virginia 9.63 6.09
Wisconsin 11.03 7.60
Wyoming 9.74 6.81
Source: Energy Information Administration Since businesses can vary greatly in size and energy needs, one-size-fits-all energy rates are not the most convenient for commercial customers. As a result, a large number of competitive electric suppliers offer commercial customers an individualized quote, tailored to the customer’s specific needs. This is the reason you will notice that the electricity rates by state for commercial energy rates vary so much in the United States. You can also search for competitive commercial electric rates and more energy information on our website.

FAQs

If the above left you craving for some more energy information, here are the answers to some of the questions you might have about electricity rates by state:

What state has the highest electricity rates?

That would be Hawaii where the average retail electricity price is 29.18 cents per kilowatt-hour. The reason is that as an island-based state, Hawaii has to import almost all of its energy, adding to the costs.

Where is the cheapest electricity in the USA?

Surprisingly, the title of the cheapest electricity state is given to Louisiana with an average retail electricity price of 7.71 cents per kilowatt-hour.

What state has the highest electric bill?

The electric bill is always calculated, based on the amount of consumed energy and the price per unit. The energy usage is really key, since, without it, it is hard to estimate your monthly bill. This post has probably left you pondering two thoughts. First, electricity is actually a pretty complex topic with many factors contributing to the cost of electricity in each state and the cents per kilowatt hour price. The second is that there are quick and convenient ways to ensure you don’t pay more than what you have to for energy rates. To start, you can enter your zip code and compare available energy offers in your area. You might find a deal well worth switching and your on your cents per kilowatt hour price. How do you feel about the rates? Do you find the electricity rates by state prices fair?

References

https://www.washingtonpost.com/wp-adv/specialsales/energy/report/article10.html? http://www.solar-hawaii.org/2012/08/22/top-3-reasons-why-electricity-is-so-high-in-hawaii/ https://www.eia.gov/state/?sid=LA https://www.eia.gov/tools/faqs/faq.php?id=97&t=3 https://www.eia.gov/state/analysis.php?sid=VT https://www.eia.gov/electricity/sales_revenue_price/pdf/table5_b.pdf

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This article appeared on the ElectricRate website at https://www.electricrate.com/electricity-rates-by-state/]]>

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