Americans shelled out a lot of money — more than they would like — to heat their homes this winter. According to those who responded to a recent CNET survey, the average monthly home energy bill this winter was over $220, with 62% of those polled saying this will strain their household budget.
“Prices have gone up, really across the board,” says Christine Ciavardini, client relationship manager at MD Energy Advisors. But those prices are not equal across the country. In fact, where you live greatly affects how much you’ll pay for energy.
Read on to find out why and what you can do about it.
Winter energy bills are straining finances
You probably don’t need a survey to tell you that heating bills are breaking the budget of many Americans. But the results are, nonetheless, illuminating. The average cost of energy during the winter varies widely across the country.
In the Northeast, survey respondents reported expecting to spend just over $800 on utility bills for the season, while that number is about $660 in the South. Some of that disparity is simply a matter of climate, but there’s also a lot of variation from state to state.
These costs hurt the finances of many Americans, the CNET survey found. Some 42% of respondents said they would keep their thermostat lower to cope, and 24% said they would try to use a space heater to warm only a part of their home.
Why are energy bills so high everywhere?
Before we get into state-level variations, it’s worth saying: High energy bills are a problem in many parts of the country.
The reason, Ciavardini says, is “because the amount of demand for electricity continues to go up in most regions, while the supply of electricity is not meeting the demand.” That, according to the classic rules of supply and demand, leads to higher prices.
Plus, this has been an especially cold and snowy winter, which has boosted the use of gas-powered heating. Here, too, there’s a supply-and-demand pressure for natural gas, which is primarily the fossil fuel methane, according to Ciavardini.
And even if you’re not using gas to heat your home, gas remains the largest single source of electricity (43% of net electricity generation nationwide in 2023) for Americans, so that’s also showing up in your electric bill.
Why do energy costs vary from state to state?
There are lots of reasons for this, Ciavardini says.The first is whether your state has a “regulated or deregulated” electricity market. In regulated markets, consumers don’t have a choice in energy providers, whereas in deregulated markets, you can switch providers. The idea here is that the competition in deregulated states creates better rates for consumers, but this is not always the case.
It also depends on what kind of energy infrastructure your state has. If the power generation comes from inside the state, it will probably be cheaper than if the state has to import from others, according to Ciavardini. States that are trying to transition away from fossil fuels to solar, wind and other renewable sources of energy might see their rates rise as they invest in new infrastructure.
“There’s a cost that comes along with that,” Ciavardini says. That doesn’t mean fossil fuels necessarily mean lower rates. In 2023, Washington had the lowest electricity rates in the US, and it generated about 60% of its electricity from renewable hydroelectric power. The next cheapest state, North Dakota, gets more than a third of its power from wind.
Average monthly electric bill by state
| State | 2023 | 2022 | Percent change |
|---|---|---|---|
| Alabama | $162.68 | $167.81 | -3.1% |
| Alaska | $137.86 | $134.18 | 2.7% |
| Arizona | $148.44 | $138.13 | 7.5% |
| Arkansas | $128.50 | $133.80 | -4.0% |
| California | $144.81 | $138.29 | 4.7% |
| Colorado | $94.64 | $98.16 | -3.6% |
| Connecticut | $202.73 | $176.08 | 15.1% |
| Delaware | $138.07 | $128.93 | 7.1% |
| District of Columbia | $103.84 | $97.08 | 7.0% |
| Florida | $168.35 | $154.50 | 9.0% |
| Georgia | $141.68 | $151.25 | -6.3% |
| Hawaii | $213.28 | $221.61 | -3.8% |
| Idaho | $106.69 | $104.28 | 2.3% |
| Illinois | $105.10 | $112.74 | -6.8% |
| Indiana | $130.89 | $138.60 | -5.6% |
| Iowa | $112.58 | $116.69 | -3.5% |
| Kansas | $117.91 | $129.81 | -9.2% |
| Kentucky | $125.79 | $141.22 | -10.9% |
| Louisiana | $142.94 | $159.23 | -10.2% |
| Maine | $153.58 | $130.83 | 17.4% |
| Maryland | $148.45 | $139.99 | 6.0% |
| Massachusetts | $165.56 | $149.90 | 10.4% |
| Michigan | $113.61 | $116.49 | -2.5% |
| Minnesota | $110.78 | $110.18 | 0.5% |
| Mississippi | $153.09 | $147.27 | 4.0% |
| Missouri | $126.10 | $126.46 | -0.3% |
| Montana | $109.54 | $102.94 | 6.4% |
| Nebraska | $111.50 | $112.62 | -1.0% |
| Nevada | $145.65 | $129.38 | 12.6% |
| New Hampshire | $168.73 | $158.66 | 6.3% |
| New Jersey | $113.22 | $114.09 | -0.8% |
| New Mexico | $91.21 | $91.19 | 0.0% |
| New York | $125.81 | $130.82 | -3.8% |
| North Carolina | $127.79 | $124.48 | 2.7% |
| North Dakota | $117.72 | $122.30 | -3.7% |
| Ohio | $124.69 | $121.07 | 3.0% |
| Oklahoma | $129.10 | $143.64 | -10.1% |
| Oregon | $117.65 | $108.05 | 8.9% |
| Pennsylvania | $143.09 | $136.18 | 5.1% |
| Rhode Island | $149.75 | $136.66 | 9.6% |
| South Carolina | $139.91 | $147.87 | -5.4% |
| South Dakota | $126.40 | $127.97 | -1.2% |
| Tennessee | $135.22 | $145.47 | -7.1% |
| Texas | $165.82 | $162.17 | 2.3% |
| Utah | $85.00 | $84.86 | 0.2% |
| Vermont | $117.09 | $113.24 | 3.4% |
| Virginia | $141.64 | $144.95 | -2.3% |
| Washington | $107.36 | $103.84 | 3.4% |
| West Virginia | $138.57 | $142.09 | -2.5% |
| Wisconsin | $111.07 | $106.95 | 3.9% |
| Wyoming | $99.27 | $98.89 | 0.4% |
How to save money on your energy bills
While states are part of the energy bill problem, they could also be part of the solution.
Many states now have programs to help offset energy costs. This might include financial incentives to improve home insulation or install energy-efficient heat pumps. Look for your state energy agency’s website for details on what’s available. You’ll often want to start with a free energy audit, which can help you understand which improvements you can make to your home.
There also might be assistance available directly from some utility companies, which might give you money to install insulation or energy-efficient appliances. And some utility companies also offer payment plans to help you manage your bills.
The federal government also offers assistance, especially for lower-income households. The Low Income Home Energy Assistance Program can help you pay your bills, and the Weatherization Assistance Program can help increase your home’s energy efficiency, allowing you to use less energy. And don’t forget about the many rebates available for home energy improvements.
And the simplest solution of all: Make sure to set your thermostat for success. The biggest single part of your energy bill is driven by heating and cooling, and setting your thermostat back by just a few degrees can lead to significant savings.
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