Electricity Rates in the US by State: An Overview

Electricity Rates in the US by State

Electricity cost is a regular expense businesses and residents have to incur every month, without miss. Rate of electricity and your kWh (kilowatt-hour) usage determine your electricity bills each month and there are many factors that influence electricity rates in the US. Usually, demand is high during extreme cold and extreme heat in most states. Electricity rates may vary by the states, depending on the demand and availability of energy in these states. In states like Texas, where summer is hotter, demand for electricity doubles in months of May, July, and August (as per the electricity demand trends observed in 2019), whereas the demand is low during winter months. Hence, most people prefer to switch their electricity providers in Texas between the months of December and March. 

In this post, I have tried to accumulate and compare electricity rates by states in the USA. To help residential customers make an informed decision, I have prepared a list of the top ten states by highest residential electricity rates in different states of the US. The rates are noted in terms of kWh usage. Kilowatt-hour is a measurement indicating the amount of electricity equal to 1000 watts an hour. As per a report, an average US residential customer uses about 3,000 kWh during summer months, whereas the usage plunges to hardly 900 kWh during winter months and moderate during fall and spring. As a result, the average electricity bill is exorbitantly high during summer and considerably lower during winter, fall, and spring

  1. Hawaii: Hawaii has the highest electricity rates in the United States. The average rate here is above 27.5 cents per kWh which is almost double the national average. 

  2. Alaska: With weighted average residential electricity rates at 17.6 cents per kilowatt (kWh) as of CY2011), Alaska is second in this list of highest electricity rates by states in the United States. Average monthly utility bill is $238 in Anchorage. 

  3. Connecticut: With average rates of 16.98 cents per kWh, Connecticut has the most expensive electricity in northeast. The state’s goal is to achieve 23% electricity from renewable sources by the year 2020.  

  4. New York: Average rate of electricity in New York is 16.25 cents per kWh. Recently, New York produced more hydro-electric energy than any other state throughout the east of Rocky Mountains. The state will install approx. 3,000 megawatts of solar photovoltaic (PV) facilities by the year 2023. Residents of New York may have to spend enough on buying electricity to enjoy central air conditioning during summer. 

  5. Rhode Island: With an average rate of electricity being 15.57¢/kWh, Rhode Island ranks at the 5th position in this list of highest electricity rates. This rate is 21% higher than the national average residential electricity rate of 11.88¢/kWh. RI is amongst the two states in the U.S. with no coal-fired energy generation, which makes it the 2nd lowest emitter of carbon dioxide in the nation. 

  6.  Massachusetts: Average rate of electricity in Massachusetts is 15.34 cents per kWh and the state currently generates about 59% of its total electricity through natural gas. Only 10% of energy is produced using coal and roughly 9% power is generated using renewable resources. 

  7. New Hampshire: Cost of electricity in New Hampshire is 15.25 cents per kWh and about 22% of energy in this state coms from natural gas and over 50% comes from a nuclear power reactor. The state has a plan to get approx. 24.8% electricity through renewable resources by the year 2025.

  8. California: Average electricity rate in California is 15.23 cents per kWh. The mild climate and statewide energy conservation programs have helped California maintain the 2nd lowest per capita electricity consumption rates in the US. An average home in the state consumes less than 6.9 megawatts per year. 

  9. Vermont: Vermont has an average electricity rate of 14.58 cents per kWh. About 27% of electricity in the state is produced using renewable energy. 

  10. New Jersey: At an average cost of 14.01 cents per kWh, New Jersey ranks 10th in this list. But the state is working towards improving its current renewable energy efforts. The Gloucester Marine Terminal Complex located in New Jersey has the largest collection of photovoltaic (PV) solar rooftop cells in the nation.

Bottom 10 Residential Electricity Rates by State, on the other hand, include Oklahoma, Louisiana, North Dakota, Missouri, Arkansas, Washington, Nebraska, West Virginia, Idaho, and Utah.

Switch to the cheaper electricity providers in your state by searching the cheapest electricity plans. For example, if you live in Texas, you can search for cheap electricity deals in Texas and lock in the lowest rates when demand is low. 

About the Author

Deepika Blogger Published On : Jan. 9, 2020

Blogger & Writer from Dallas, Texas


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