What’s the Average Power Bill in Each State? See How Yours Compares

Costs are going up across the board, and utility bills are part of that. A recent CNET survey revealed that 78% of Americans worry about rising energy costs. Still, with record hot weather looming, it’ll be no surprise if people turn to their air conditioners for relief.

Location plays a huge role in what you’ll pay for energy. Weather directly affects heating and cooling expenses, which typically make up the largest chunk of a household’s energy use. The source of your electricity matters too — Washington state, for instance, enjoys rates just above 10 cents per kilowatt-hour, thanks to abundant hydropower. Hawaii residents pay more than 40 cents, because they rely heavily on imported fuel. These differences show just how much local energy resources determine what you pay.

To help you understand where you stand, we’ve compiled how each state’s average electric bill compares with the national picture. Our comparison uses data from the US Energy Information Administration, which tracks electric rates across all states. The EIA also offers practical tips for cutting energy costs, which can help you identify ways to trim your electricity bill while reducing your overall consumption. Understanding your state’s energy landscape can help you explore options for managing costs and adopting more sustainable energy practices.

We calculated these average electric bills by using EIA data on revenue from residential electricity sales and dividing that by the number of customers. Prices and usage of electricity can vary significantly throughout the year.

Electricity rates by state

Your total power bill is a factor of more than just how much energy you use. It also depends on the price of electricity. That can vary widely from state to state, city to city and even electricity provider to electricity provider. The states that pay the least per kilowatt-hour of electricity are largely clustered in the middle of the country, particularly in areas that get a lot of cheap power from wind and hydropower. The most expensive state by far is Hawaii, with New England also seeing expensive electricity. 

Here’s a look at electricity prices, using EIA data.

Can you choose your electricity provider?

There was a time, not so long ago, when the electricity that came to your house wasn’t part of a decision-making process — it was just there. 

But now, entire regions, states and municipalities have their own options, challenges, pros and cons for different energy options. Some states are deregulated, with a consumer choice approach to their energy offerings, while others stay closer to the traditional methods. Some offer green energy options while others stick with the old fossil fuel ways. 

Some experts say deregulation gives the consumer more power and choices. But will you save money if you exercise your power to choose a new retail electric provider? Joshua Basseches, an assistant professor of public policy and environmental studies at Tulane University, downplays any guarantee of savings. 

Considering Solar Panels?

Our email course will walk you through how to go solar

 

By signing up, you confirm you are 16+, will receive newsletters and promotional content and agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.

“It’s unclear on a systematic level whether deregulation has actually led to decreases in electricity rates, and that’s because there’s so many factors, including things like what’s going on in Ukraine and the rate-making process,” he said. “Whether it’s had the effect that was promised on prices of electricity is very much up for debate.” 

Knowing if you should be choosing a new energy supplier may come down to how much electricity you’re paying for and if you think you can save money by switching.

What to look for when choosing an electricity provider

Each region, state and even community is going to have different elements at play that residents should be aware of when shopping for electricity providers. 

On a basic level, you’ll want to look out for plan options that work for you — more on that later — pricing structure, customer satisfaction and payment options. But there are also more tricky factors to consider, like contract terms and potential scams. 

In such a lucrative field, a variety of scams are out there that could trick you out of hard-earned money. Basseches recommends checking with your state’s public utility commission and other government entities to get a feel for the scammers that are out there. For example, the state of Ohio has a whole web page with information on known scams and common tactics. But Basseches also recommends the old-fashioned way: talking to the people you know. 

“Stick with the public utility commissions, but also talk to your neighbors,” he said. 

Finding the best electricity rates 

It may seem like a daunting process, but you can find savings and higher satisfaction from your energy provider with a bit of homework. 

Shopping for an energy provider isn’t just about finding the absolute lowest rate. You’ll want to avoid scams and be sure to pay close attention to your electronic facts label or terms of service, where public utility commissions require disclosure of things like price per kWh of electricity, base charges, delivery charges, early termination fees and more. All of these factors can add up, and should be taken into account during your research. 

5 types of energy plans 

Depending on company, location and a variety of other factors, you may be able to sign up for several different types of energy plan in a deregulated market, each with their own pros and cons.

Fixed-rate plan: In a fixed-rate plan, an energy supplier charges a consistent rate per unit of energy over a specified contract term. Regardless of changes in the energy market, your rate remains constant, providing stability and predictability that can help budgeting and planning.

Variable-rate plan: A variable-rate plan does not lock you into a long-term contract or a fixed rate, meaning you get to take advantage of prices falling. But your rate will fluctuate based on market conditions or the supplier’s pricing policies, which means you could be in for high prices during times of increased costs. And while prices can go up or down, you have the flexibility to switch plans or suppliers at any time.

Time-of-use plan: A TOU plan charges different rates based on when you use energy. One example is called “free nights and weekends.” In a TOU plan, charges are tied to the time of day or day of the week, with peak and off-peak periods. Peak hours are when energy demand is high, and usually come with higher rates, while off-peak hours have lower rates. This plan encourages customers to shift their energy usage to off-peak times to save money.

Green energy plan: A green energy plan, also known as a renewable energy plan, allows you to support environmentally friendly energy sources that are alternative to traditional energy delivery. These plans ensure that a certain percentage of the electricity supplied comes from renewable sources such as wind, solar, hydro or geothermal. It enables people to reduce their carbon footprint and contribute to a cleaner energy future.

Prepaid plan: In a prepaid energy plan, you pay in advance for your electricity usage, depositing money into your account before you use the energy. This plan is beneficial for people who want to closely monitor and manage their energy consumption. On these plans, when your prepaid balance runs low, you need to top it up to continue receiving power.

These US states have energy choice

The following states (along with the District of Columbia) have fully deregulated or restructured electricity utilities, according to the US Environmental Protection Agency:

Another five states have partially deregulated or restructured environments:

• California
• Georgia
• Michigan
• Oregon
• Virginia

Cut your power bills by going solar

Generating your own electricity might allow you to slash your power bills even more. Solar panels are the most common and straightforward way to do this. Rooftop solar panels are increasingly affordable, both as the cost of equipment and installation falls and with the help of a big federal solar tax credit and other incentives for clean energy. Your state may offer programs ranging from tax credits and exemptions to net metering, allowing you to earn money for electricity you sell back to the grid.

The first step in going solar is to figure out if it’s worth it. There are several ways to calculate how long it will take for solar panels to pay for themselves. And if you live in a state with expensive electricity, that payback period will be even shorter. 

When shopping for solar panels, the most important consideration is what installer you choose to do the work. Don’t sign up with the first person who shows up at your door with a clipboard selling you something that sounds too good to be true. As you should with any major home improvement project, get several quotes, read reviews, ensure the installer is certified and reputable and check out any claims they make about incentive programs. Ask a lot of questions, and make sure the installer can answer them.

You may also want to consider a home battery, which can work in conjunction with your solar panels to save you even more money. Batteries are particularly helpful if you have time-of-use electric rates, in which you pay more for energy from the grid during peak hours. A battery can charge when electricity is cheap and discharge when it’s expensive, helping you pay a lower rate.

Save money by saving energy

Of course, the cheapest kilowatt-hour is the one you don’t use. Reducing your energy usage can be one of the quickest and easiest ways to lower your costs. Here are a few strategies to try.

Seal up your home: The biggest energy cost is around heating and cooling, so the less you need to run your HVAC system, the better. Sealing around doors and windows using weatherstripping can keep cold air out in the winter and inside during the summer. It can also help your HVAC system better maintain a comfortable humidity level inside. 

Use LED light bulbs: Switching your old light bulbs for LED bulbs can bring you significant savings, especially if you’re still using older incandescent bulbs. LED bulbs are significantly more efficient, turning lighting from a major component of your power bill to a small part.

Watch that thermostat: Don’t set your thermostat so hot in the winter that it reminds you of the beach in summer. And you shouldn’t be cold enough to wear a sweater indoors in the middle of summer. Setting the right temperature for your thermostat can save you significantly on your energy bills — especially if you change it even more when you aren’t home. A good smart thermostat can make this process easier for you with features like smart scheduling and geofencing, so the device knows exactly when you are and aren’t home.