Last updated: April 8, 2025

Here are current business electric rates and plans as of April 2025.  These are actual offers from commercial energy providers:

Data source:  Direct from commercial energy providers and our own internal, proprietary data source, collection, and/or analysis.

Commercial Electricity Rates by State

This table shows average prices for business electricity across the United States:

As of April 2025, the average business electricity rate in the United States is 13.18 cents per kilowatt-hour (kWh).

• State with the lowest average electric rate:  North Dakota – 7.44 cents 
• State with the highest average electric rate: Hawaii – 38.13 cents per kWh

The average commercial electricity rate in Texas is around hovers around 8.75 cents per kWh, nearly 30% lower than the national average.

Energy rates for businesses can vary significantly from state to state.  The highest rates are typically found in Hawaii and Alaska, while the lowest rates are typically found in Texas and in the Midwest.

FAQ

What makes up most of a business’ electricity bill?
Electricity rates can vary depending on a number of factors, including the location, the type of business, and the amount of electricity used.

What determines the rate a company pays for electricity?
The kWh rate (ie electric rate) a business pays for electricity can vary depending on a number of factors including the location of the business, the type of business, the amount of electricity that the business uses, as well as when electricity is used.

Which types of companies use the most energy?
As we mentioned before, the term “commercial” building can encompass a variety of buildings with different purposes. The top five types of commercial buildings use a little less than two-thirds of energy consumed by all commercial buildings.

Out of the different types of commercial buildings, retail and service buildings use the most energy — they use 20% of all energy consumed by all commercial buildings. Office buildings come in next at 17% of all consumption, followed by education (13%), health care (9%), and lodging (8% of consumption).

What types of electric plans offered by providers?

There are two main types of business electricity plans:

• Fixed-rate plans:  Fixed-rate plans come with an electric rate that is set (“locked in”) for a certain period of time (a term), regardless of the wholesale price of electricity.  Common terms for such agreements are 6 months, 12 months, and 24 months.  The longer the term, the more 
  
• Variable-rate plans:  These rates fluctuate based on the wholesale price of electricity. Businesses that choose variable rates may be able to save money if the wholesale price of electricity is low. However, they can also expect higher rates (and in some instances, much higher) if the wholesale price of electricity increases.

What are Energy Choice Programs?
States that are energy deregulated will typically offer energy choice programs or have energy choice organizations (like Electric Choice) that will help businesses to find an energy supplier. It is important to find the energy supplier that best suits the business needs, as in the long run; they can save a company money, time and more.