Electricity Rates by State
The average U.S. electricity rate is 18.05¢/kWh residential and 14.12¢/kWh commercial (May 2026), ranging from 12.44¢ in Louisiana to 39.89¢ in Hawaii — up 5.4% year-over-year.
Residential
| National Average | 18.05¢/kWh |
| Cheapest State | Louisiana — 12.44¢ |
| Most Expensive | Hawaii — 39.89¢ |
| YoY Change | +5.4% |
| Largest Increase | California — +8.9% |
| Smallest Increase | Louisiana — +1.8% |
Key U.S. residential electricity rate statistics, May 2026
Commercial
| National Average | 14.12¢/kWh |
| Cheapest State | North Dakota — 7.44¢ |
| Most Expensive | Hawaii — 38.79¢ |
| YoY Change | +5.0% |
| Largest Increase | New Jersey — +9.1% |
| Smallest Increase | North Dakota — +1.3% |
Key U.S. commercial electricity rate statistics, May 2026
Electricity Price per kWh by State
What consumers and businesses pay per kilowatt-hour varies dramatically by location. States with hydroelectric power (Idaho, Washington) enjoy the lowest rates, while island states like Hawaii pay a premium due to fuel imports. Commercial rates average 22% less than residential nationwide.
| State | Residential | Commercial | vs 2025 |
|---|---|---|---|
| Alabama | 16.79 | 14.46 | +4.0% |
| Alaska | 26.57 | 23.12 | +4.4% |
| Arizona | 15.62 | 13.09 | +3.1% |
| Arkansas | 13.32 | 10.77 | +2.3% |
| California | 33.75 | 29.46 | +8.9% |
| Colorado | 16.33 | 13.32 | +4.7% |
| Connecticut | 27.84 | 23.89 | +7.0% |
| Delaware | 18.39 | 12.69 | +5.3% |
| District of Columbia | 24.03 | 20.86 | +4.8% |
| Florida | 15.77 | 11.55 | +3.4% |
| Georgia | 14.60 | 11.44 | +3.0% |
| Hawaii | 39.89 | 38.79 | +7.5% |
| Idaho | 12.51 | 8.19 | +2.1% |
| Illinois | 18.82 | 14.01 | +6.0% |
| Indiana | 17.42 | 14.16 | +5.1% |
| Iowa | 13.54 | 13.31 | +2.6% |
| Kansas | 15.23 | 12.05 | +3.7% |
| Kentucky | 13.68 | 12.15 | +2.9% |
| Louisiana | 12.44 | 10.93 | +1.8% |
| Maine | 29.55 | 21.40 | +8.1% |
| Maryland | 22.40 | 15.18 | +6.4% |
| Massachusetts | 31.51 | 23.40 | +7.7% |
| Michigan | 20.55 | 14.92 | +6.1% |
| Minnesota | 16.44 | 13.22 | +4.0% |
| Mississippi | 14.53 | 12.67 | +2.7% |
| Missouri | 13.01 | 12.51 | +2.5% |
| Montana | 14.33 | 12.61 | +3.3% |
| Nebraska | 13.19 | 9.58 | +2.4% |
| Nevada | 13.83 | 9.91 | +3.1% |
| New Hampshire | 27.39 | 20.54 | +7.3% |
| New Jersey | 22.65 | 18.78 | +6.6% |
| New Mexico | 15.00 | 12.24 | +3.5% |
| New York | 27.07 | 22.54 | +7.1% |
| North Carolina | 15.12 | 10.09 | +3.2% |
| North Dakota | 12.87 | 7.44 | +2.0% |
| Ohio | 17.93 | 11.55 | +5.6% |
| Oklahoma | 14.48 | 10.04 | +3.4% |
| Oregon | 16.23 | 11.36 | +3.9% |
| Pennsylvania | 20.58 | 12.79 | +6.3% |
| Rhode Island | 31.30 | 22.44 | +8.4% |
| South Carolina | 15.71 | 10.88 | +3.6% |
| South Dakota | 14.15 | 10.99 | +2.8% |
| Tennessee | 13.12 | 13.02 | +2.3% |
| Texas | 16.18 | 9.12 | +4.3% |
| Utah | 13.75 | 10.87 | +2.7% |
| Vermont | 24.89 | 19.33 | +6.7% |
| Virginia | 16.43 | 9.73 | +4.1% |
| Washington | 14.12 | 11.90 | +3.0% |
| West Virginia | 16.26 | 11.65 | +4.5% |
| Wisconsin | 18.45 | 13.70 | +5.8% |
| Wyoming | 15.18 | 9.79 | +3.6% |
| U.S. Average | 18.05 | 14.12 | +5.4% |
Key Takeaways
Average Electricity Rates by State
Residential electricity prices in cents per kWh — May 2026
Rate Categories
National Statistics
Average Electricity Prices by Region
The five U.S. regions rank from cheapest to most expensive for residential electricity: South Central (14.11¢), Southeast (15.20¢), Midwest (15.97¢), West (19.01¢), and Northeast (25.63¢). These patterns are driven by fuel sources, infrastructure age, and regulatory structure — the Northeast pays 42% more than the national average, while the South Central region enjoys rates 22% below it.
Northeast
25.63¢/kWhAging grid infrastructure, limited domestic fuel production, congested transmission corridors, and aggressive renewable energy mandates all drive costs higher. Massachusetts (31.51¢), Rhode Island (31.30¢), and Maine (29.55¢) rank among the five most expensive states nationally. On the upside, most northeastern states have deregulated electricity markets, giving consumers the ability to shop for competitive rates from alternative suppliers.
West
19.01¢/kWhThe western average is heavily skewed by three outliers: Hawaii (39.89¢), California (33.75¢), and Alaska (26.57¢). Remove those three and the remaining ten states average just 14.59¢/kWh — well below the national average — thanks to abundant hydroelectric power in the Pacific Northwest and growing solar capacity in the desert Southwest. Idaho (12.51¢) and Nevada (13.83¢) are among the most affordable states in the country.
Midwest
15.97¢/kWhThe Midwest sits near the national average with a wide internal spread. Michigan (20.55¢) and Illinois (18.82¢) push the regional average higher, while wind-rich Great Plains states like North Dakota (12.87¢) and Iowa (13.54¢) keep costs low. Deregulated markets in Ohio and Illinois give consumers in those states the option to compare and switch providers for potential savings of 15–30%.
Southeast
15.20¢/kWhLow fuel costs and stable regulatory environments keep southeastern rates well below the national average. Tennessee (13.12¢) and Georgia (14.60¢) benefit from TVA hydroelectric infrastructure and nuclear baseload generation. None of these ten states offer retail electricity choice — rates are set by regulated utilities — but the trade-off is generally lower, more predictable pricing.
South Central
14.11¢/kWhThe four South Central states enjoy the lowest regional average in the country. Louisiana (12.44¢) leads the nation in affordability thanks to abundant natural gas production and refining capacity. Texas (16.18¢) is the regional outlier — its deregulated ERCOT market creates more price variability, but also gives consumers more provider choices than any other state. Arkansas and Oklahoma round out the group with rates comfortably below the national average.
U.S. Electricity Rate Trends (2022–2026)
U.S. electricity rates have risen 21% in five years, from 14.92¢/kWh in 2022 to 18.05¢/kWh in 2026. Year-over-year increases were +6.2% (2023), +4.9% (2024), +3.0% (2025), and +5.4% (2026). This sustained climb reflects fuel cost inflation, grid modernization investments, and surging demand from data centers and electric vehicle adoption.
| Year | Avg Rate (¢/kWh) | YoY Change |
|---|---|---|
| 2022 | 14.92 | — |
| 2023 | 15.85 | +6.2% |
| 2024 | 16.63 | +4.9% |
| 2025 | 17.13 | +3.0% |
| 2026 | 18.05 | +5.4% |
The 2025–2026 jump of 5.4% reversed a two-year slowdown, driven largely by rising natural gas prices and unprecedented electricity demand growth. Record data center construction in 2025 pushed commercial and industrial consumption higher. At the same time, grid hardening investments in response to extreme weather — wildfires in the West, hurricanes along the Gulf Coast, and winter storms in Texas — added infrastructure costs that utilities passed through to ratepayers.
Frequently Asked Questions
Which state has the cheapest electricity?
Louisiana has the cheapest residential electricity at 12.44¢/kWh—31% below the national average—thanks to abundant natural gas production, refining infrastructure, and low population density that keeps demand manageable. For commercial rates, North Dakota leads at just 7.44¢/kWh due to low infrastructure costs and hydroelectric access. In deregulated states like Texas, consumers can also find competitive rates by shopping among providers.
Why is Hawaii’s electricity so expensive?
Hawaii pays 39.89¢/kWh—over 2.2x the national average—because it imports petroleum for most power generation. Island geography means no access to mainland grid infrastructure or cheaper natural gas pipelines. However, Hawaii is actively transitioning to renewables, with 43% rooftop solar adoption statewide, and prices have begun declining slightly as solar and battery capacity grows.
Why did rates increase 5.4% this year?
The 2025–2026 increase (+5.4%) reflects rising natural gas prices, grid modernization investments, increased demand from data centers and EVs, extreme weather hardening costs, and renewable energy transition expenses. The Northeast was hardest hit, with Rhode Island (+8.4%), Maine (+8.1%), and Massachusetts (+7.7%) seeing the steepest increases. California led the West at +8.9%. Data sourced from the U.S. Energy Information Administration (EIA).
Can I switch providers to save money?
Yes—if you live in a deregulated state. 14 states + D.C. have competitive electricity markets: Texas, Pennsylvania, Ohio, Illinois, New Jersey, New York, Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, Rhode Island, and parts of others. Customers in these states typically save 15–30% by comparing providers. Enter your zip code at the top of this page to see available plans in your area.
Why are commercial rates lower than residential?
Businesses consume electricity in larger, more predictable quantities, which reduces per-customer infrastructure and billing overhead. Many large businesses also leverage time-of-use pricing and demand response programs to shift usage to off-peak hours for lower rates. The national commercial rate (14.12¢) is 22% lower than residential (18.05¢).
What factors determine electricity prices?
Six main factors: fuel costs (especially natural gas, which powers 40% of U.S. generation), power plant expenses, transmission infrastructure, weather/seasonal demand, state regulations and renewable mandates, and market structure (regulated vs. deregulated). The EIA tracks these factors monthly. See the historical trend section on this page for how they’ve driven prices over the past five years.
How can I lower my electricity bill?
In deregulated states, simply switching providers through a comparison service like ElectricChoice.com can save 15–30% with no lifestyle changes. Otherwise: switch to LED lighting, upgrade to Energy Star appliances, install a smart thermostat, seal air leaks, use off-peak electricity, and consider rooftop solar if you own your home. Many utilities also offer free energy audits to identify savings opportunities.
Data Sources
Rate data is sourced from the U.S. Energy Information Administration (EIA). Regional averages, year-over-year comparisons, and trend analysis are compiled internally by ElectricChoice.com’s editorial team (PUCT #BR190455, est. 2002). All data is reviewed and updated monthly. Last refresh: May 2, 2026.