U.S. Electricity Rates by State: A Comprehensive Analysis (2025)

With inflation hitting the cost of everything, from the cost of a gallon of milk to the dollar signs at the gas pump, the last thing anyone wants to worry about is their monthly energy bills. However, where you live in the U.S. has a big impact on your energy costs, not just because of the electricity rate you pay, but because of how much energy you may be using on average.

Electricity costs vary dramatically from state to state, influenced by a complex mix of factors including geography, resource availability, regulatory environments and infrastructure investments.

Using the latest data from the U.S. Energy Information Administration (EIA), we’ve authorized a comprehensive analysis examining the latest data on electricity rates across all 50 states and the District of Columbia. We identify patterns, anomalies and notable trends affecting residential and commercial consumers across the U.S.

National Overview

According to March 2025 data from the EIA, the average residential electricity rate in the U.S. is 17.01 cents per kilowatt-hour (kWh), representing a 2.6% increase from March 2024. For commercial customers, the national average stands at approximately 13.27 cents per kWh (September 2024 EIA data).

The average American household consumes approximately 899 kWh monthly (based on 2022 EIA data), resulting in an average monthly bill of $152.96. Below, you can find the average price per kWh and estimated monthly bill per state, based on the most recent available EIA data.

States with the Highest Residential Electricity Rates

The following states have the most expensive residential electricity rates as of March 2025:

1. Hawaii: 41.1 cents per kWh
2. Rhode Island: 33.07 cents per kWh
3. Connecticut: 33.25 cents per kWh
4. California: 32.41 cents per kWh
5. Massachusetts: 30.44 cents per kWh
6. New York: 26.20 cents per kWh
7. Maine: 26.26 cents per kWh
8. Alaska: 24.77 cents per kWh
9. New Hampshire: 23.02 cents per kWh
10. Vermont: 22.19 cents per kWh

These high-cost states share several common characteristics:

• Geographic isolation (Hawaii, Alaska)
• Limited local energy resources
• Higher regulatory requirements
• Aging infrastructure with high maintenance costs
• Greater reliance on imported energy

States with the Lowest Residential Electricity Rates

Conversely, these states enjoy the lowest residential electricity rates:

1. North Dakota: 11.08 cents per kWh
2. Nebraska: 10.89 cents per kWh
3. Idaho: 10.95 cents per kWh
4. Oklahoma: 11.59 cents per kWh
5. Missouri: 11.25 cents per kWh
6. Arkansas: 11.60 cents per kWh
7. Montana: 11.62 cents per kWh
8. Wyoming: 11.70 cents per kWh
9. Louisiana: 11.73 cents per kWh
10. South Dakota: 11.84 cents per kWh

These states benefit from:

• Abundant local energy resources (coal, natural gas, hydroelectric)
• Lower population density and distribution costs
• Less stringent regulatory environments
• Proximity to energy production facilities

Estimated Monthly Electricity Bills

While the rate per kWh is important, the actual financial impact on consumers depends on both rates and consumption. The states with the highest estimated monthly residential electricity bills are:

1. Connecticut: $237.41
2. Hawaii: $211.67
3. Maryland: $199.51
4. Alabama: $194.37
5. New York: $187.07
6. Rhode Island: $182.55
7. Texas: $177.13
8. Arizona: $172.17
9. Delaware: $170.43
10. Florida: $168.93

Interestingly, while Hawaii has the highest rate per kWh, lower consumption patterns help mitigate the overall bill impact. Connecticut residents face the challenge of high rates combined with moderate consumption.

The states with the lowest estimated monthly bills are:

1. Utah: $88.65
2. Nebraska: $97.90
3. New Mexico: $104.32
4. Minnesota: $104.41
5. Montana: $104.46
6. Wyoming: $105.18
7. Iowa: $109.77
8. Colorado: $108.38
9. Washington: $112.21
10. Illinois: $117.78

Commercial Electricity Rates

Highest Commercial Rates:

1. Hawaii: 36.43 cents per kWh
2. Connecticut: 25.18 cents per kWh
3. Rhode Island: 24.53 cents per kWh
4. California: 23.72 cents per kWh
5. Massachusetts: 23.20 cents per kWh

Lowest Commercial Rates:

1. North Dakota: 7.07 cents per kWh
2. Oklahoma: 8.12 cents per kWh
3. Nevada: 8.39 cents per kWh
4. Nebraska: 8.89 cents per kWh
5. Texas: 9.00 cents per kWh

Of particular interest is Texas, which ranks in the middle for residential rates (15.30 cents per kWh) but offers among the lowest commercial rates in the nation (9.00 cents per kWh), representing a significant differential that benefits businesses operating in the state.

Analysis of Electricity Consumption Patterns

Electricity consumption varies significantly by region, influenced by climate, housing stock, and local energy efficiency standards:

Highest Annual Household Consumption:

1. Louisiana: 12,922 kWh
2. Texas: 11,882 kWh
3. Florida: 11,768 kWh
4. Alabama: 11,444 kWh
5. Tennessee: 11,368 kWh

These high-consumption states share a common factor: climate. All have hot, humid summers requiring extensive air conditioning use, which significantly drives up electricity consumption.

Lowest Annual Household Consumption:

1. California: 5,184 kWh
2. Hawaii: 5,309 kWh
3. Vermont: 5,650 kWh
4. Alaska: 5,792 kWh
5. Massachusetts: 5,799 kWh

Lower consumption in these states can be attributed to factors such as:

• Milder climates requiring less heating/cooling (California, Hawaii)
• Greater adoption of energy-efficient appliances and building standards
• Higher rates driving conservation behaviors
• Alternative heating sources (natural gas, heating oil) in colder states

The Hawaii Anomaly: Examining the Nation’s Highest Rates

Hawaii’s electricity market represents a unique case study in how geographic isolation affects energy costs. At 41.11 cents per kWh for residential customers, Hawaii’s rates are approximately 2.6 times the national average. Several factors contribute to this significant disparity:

1. Island geography: As an isolated island chain, Hawaii cannot connect to the continental power grid, requiring each island to maintain its own independent power generation and distribution system.
2. Fossil fuel dependence: Despite growing renewable adoption, Hawaii still relies heavily on imported petroleum for electricity generation. This dependency subjects electricity rates to global oil price volatility and high shipping costs.
3. Small scale inefficiency: Hawaii’s relatively small population spread across multiple islands prevents the economies of scale that benefit larger, interconnected mainland systems.
4. Renewable transition costs: Hawaii has committed to achieving 100% renewable energy by 2045, but the infrastructure investments required for this transition temporarily increase costs.

Despite these challenges, Hawaii has seen a modest decrease in electricity rates compared to 2024, suggesting that investments in renewable energy may be beginning to yield benefits. Additionally, Hawaiian households have adapted to high rates with lower consumption patterns (515 kWh monthly), ranking third-lowest in the nation. Those low usage rates help keep Hawaii’s total energy costs manageable, despite having the highest rate per kWh by a wide margin.

Regional Patterns in Electricity Rates

Clear regional patterns emerge when analyzing electricity rates across the United States:

1. Northeast: States in New England and the Mid-Atlantic consistently show higher-than-average rates, with six of the top ten most expensive states located in this region. Factors include limited local generation, aging infrastructure and stricter environmental regulations.
2. Midwest/Great Plains: This region boasts some of the nation’s lowest electricity rates, benefiting from abundant coal, natural gas and wind resources, and lower population density.
3. Southeast: While the Southeast has generally moderate rates, it also has high consumption, particularly for cooling during hot, humid summers. The resulting bills tend to be higher despite mid-range per-kWh-hour costs.
4. West Coast: California, in particular, faces high rates due to ambitious renewable energy goals and regulatory requirements, while Oregon and Washington benefit from abundant hydroelectric resources that keep their rates more moderate.
5. Mountain West: This region generally has lower rates thanks to abundant natural resources and lower population density, although you’ll find significant variation between states.

Factors Influencing Electricity Rates

Multiple factors contribute to the significant variations in electricity rates across states:

1. Energy resource availability: States with abundant local energy resources (coal, natural gas, hydropower) typically enjoy lower generation costs.
2. Regulatory environment: States with more stringent environmental regulations and renewable portfolio standards often have higher rates as utilities invest to meet these requirements.
3. Infrastructure age and investment needs: Regions with aging power grids require significant maintenance and upgrade investments, costs that are passed on to consumers.
4. Market structure: States with regulated monopoly utilities versus those with competitive retail markets show different pricing patterns and consumer options.
5. Weather and climate: Extreme weather events and climate patterns influence both infrastructure costs (hardening against storms) and peak demand requirements.
6. Population density and distribution: States with dispersed populations face higher per-customer transmission and distribution infrastructure costs.
7. Fuel mix: The specific combination of generation sources (coal, natural gas, nuclear, renewables) significantly impacts overall electricity costs.

Conclusion

The U.S. electricity market presents a complex landscape of varying costs influenced by geography, policy, infrastructure and consumption patterns. While consumers in states like Hawaii, Connecticut and California face substantially higher electricity rates than those in North Dakota, Nebraska or Idaho, the actual financial impact depends on both rates and consumption behaviors.

As the nation continues its transition toward cleaner energy sources, these patterns will likely evolve. Some high-cost states potentially see relative improvements as renewable investments mature, while traditionally low-cost states may face new challenges as legacy fossil fuel assets are retired. For consumers and businesses alike, understanding these factors can inform energy efficiency investments, consumption behaviors and even location decisions in the years ahead.

Source:

•  U.S. Energy Information Administration (EIA)
  • Electric Power Monthly
  • Electric Power Annual – Table 2.8
  • Electric Power Annual – Table 2.1
  • EIA FAQ on Average Electricity Use