Shopping for commercial electricity is broken
Residential customers have Power to Choose, PA Power Switch, Energy Choice Ohio. Businesses have nothing. Commercial rates live behind broker calls, quote forms, and PDF footnotes.
No public comparison site
Every state runs a residential rate comparison tool. None cover commercial. If you want to see business electricity rates, you have to call someone — and that someone is usually a broker.
Brokers run the funnel
Search "commercial electricity rates" and the first page of results is lead gen. You enter your info, a broker calls, and you see whatever plans they get paid to show you.
Impossible to compare apples to apples
One quote shows energy-only. The next bundles TDU delivery. A third hides a base fee in a PDF footnote. "Lowest rate" means nothing when every quote is formatted differently.
Miss your renewal, pay double
Let your contract lapse by a week and your provider rolls you to holdover rates — often 2–3x what you were paying. Most business owners find out on the next bill.
What this page gives you
Real commercial electricity data for every state. No sales call. No quote form.
- ✓ Average commercial rates for all 50 states from EIA data, updated monthly
- ✓ Live energy-only rates from licensed providers in Texas and other deregulated markets
- ✓ Load factor calculator with demand charge analysis by industry
- ✓ Side-by-side comparison of deregulated vs. regulated market rates
- ✓ Rate trend data from 2018 to present — see where prices are headed
Commercial Electricity Rates by State
Average commercial electricity rate in cents per kWh (July 2026). States marked "Shop Rates" have deregulated markets where businesses choose their electricity provider.
| # | State ▲ | Rate (¢/kWh) ▲ | vs. National Avg | Market |
|---|---|---|---|---|
| 1 | North Dakota | 7.44¢ /kWh | 45% below avg | Regulated |
| 2 | Idaho | 8.19¢ /kWh | 39% below avg | Regulated |
| 3 | Nebraska | 9.58¢ /kWh | 29% below avg | Regulated |
| 4 | Virginia | 9.73¢ /kWh | 28% below avg | Regulated |
| 5 | Utah | 9.81¢ /kWh | 27% below avg | Regulated |
| 6 | Oklahoma | 10.08¢ /kWh | 25% below avg | Regulated |
| 7 | Wyoming | 10.12¢ /kWh | 25% below avg | Regulated |
| 8 | Washington | 10.14¢ /kWh | 25% below avg | Regulated |
| 9 | Louisiana | 10.46¢ /kWh | 23% below avg | Regulated |
| 10 | Oregon | 10.52¢ /kWh | 22% below avg | Regulated |
| 11 | Texas | 10.56¢ /kWh | 22% below avg | Deregulated |
| 12 | Nevada | 10.93¢ /kWh | 19% below avg | Regulated |
| 13 | Kentucky | 11.04¢ /kWh | 18% below avg | Regulated |
| 14 | North Carolina | 11.10¢ /kWh | 18% below avg | Regulated |
| 15 | Arkansas | 11.22¢ /kWh | 17% below avg | Regulated |
| 16 | Montana | 11.48¢ /kWh | 15% below avg | Regulated |
| 17 | West Virginia | 11.55¢ /kWh | 15% below avg | Regulated |
| 18 | Missouri | 11.60¢ /kWh | 14% below avg | Regulated |
| 19 | South Carolina | 11.68¢ /kWh | 14% below avg | Regulated |
| 20 | South Dakota | 11.74¢ /kWh | 13% below avg | Regulated |
| 21 | Tennessee | 11.85¢ /kWh | 12% below avg | Regulated |
| 22 | New Mexico | 12.05¢ /kWh | 11% below avg | Regulated |
| 23 | Illinois | 12.17¢ /kWh | 10% below avg | Deregulated |
| 24 | Georgia | 12.20¢ /kWh | 10% below avg | Regulated |
| 25 | Pennsylvania | 12.24¢ /kWh | 9% below avg | Deregulated |
| 26 | Mississippi | 12.32¢ /kWh | 9% below avg | Regulated |
| 27 | Arizona | 12.38¢ /kWh | 8% below avg | Regulated |
| 28 | Florida | 12.51¢ /kWh | 7% below avg | Regulated |
| 29 | Ohio | 12.67¢ /kWh | 6% below avg | Deregulated |
| 30 | Colorado | 12.84¢ /kWh | 5% below avg | Regulated |
| 31 | Kansas | 12.93¢ /kWh | 4% below avg | Regulated |
| 32 | Delaware | 13.05¢ /kWh | Near average | Deregulated |
| 33 | Minnesota | 13.16¢ /kWh | Near average | Regulated |
| 34 | Indiana | 13.44¢ /kWh | Near average | Regulated |
| 35 | Iowa | 13.60¢ /kWh | Near average | Regulated |
| 36 | Alabama | 13.67¢ /kWh | Near average | Regulated |
| 37 | Wisconsin | 13.88¢ /kWh | Near average | Regulated |
| 38 | Maryland | 14.17¢ /kWh | 5% above avg | Deregulated |
| 39 | Washington DC | 14.28¢ /kWh | 6% above avg | Deregulated |
| 40 | Michigan | 14.51¢ /kWh | 7% above avg | Regulated |
| 41 | New Jersey | 15.92¢ /kWh | 18% above avg | Deregulated |
| 42 | Maine | 17.62¢ /kWh | 30% above avg | Deregulated |
| 43 | Vermont | 18.90¢ /kWh | 40% above avg | Regulated |
| 44 | New York | 19.44¢ /kWh | 44% above avg | Deregulated |
| 45 | New Hampshire | 19.78¢ /kWh | 46% above avg | Deregulated |
| 46 | Rhode Island | 21.35¢ /kWh | 58% above avg | Deregulated |
| 47 | Connecticut | 22.10¢ /kWh | 64% above avg | Deregulated |
| 48 | Alaska | 22.41¢ /kWh | 66% above avg | Regulated |
| 49 | Massachusetts | 23.87¢ /kWh | 77% above avg | Deregulated |
| 50 | California | 25.64¢ /kWh | 90% above avg | Regulated |
| 51 | Hawaii | 38.79¢ /kWh | 187% above avg | Regulated |
Live Commercial Rates in Texas
Real-time energy-only rates from licensed providers in the Texas deregulated market. Delivery charges are separate and set by your utility.
Rates do not include delivery charges, demand charges, or applicable fees. Enter your ZIP code to see all-in pricing.
Rate Map
Commercial electricity rates visualized. Hover or tap a state to see its rate. Dashed outlines indicate deregulated markets.
Commercial Rates Over Time
National average commercial electricity rate from 2018 to 2026. Rates are up 27% since 2018.
Deregulated Electricity Markets
In deregulated states, businesses choose their electricity supplier. The utility still delivers power, but you pick who generates it and at what price.
How it works
Your electricity bill has two parts: supply (the energy itself) and delivery (the wires and poles). In deregulated states, you can shop for the supply portion. The utility still handles delivery — that part doesn't change.
For commercial customers, this means running competitive bids from multiple suppliers. Businesses with consistent usage profiles and longer contract terms get the best rates. Most companies save 10–25% on the supply portion.
14 Deregulated States
- Connecticut
- Delaware
- Illinois
- Maine
- Maryland
- Massachusetts
- New Hampshire
- New Jersey
- New York
- Ohio
- Pennsylvania
- Rhode Island
- Texas
- Washington DC
Who this data is for
Whether you handle one utility bill or fifty, commercial electricity decisions start with the same question: what are businesses actually paying?
Single-Location SMBs
Restaurants, dental offices, shops, salons, small clinics. You handle the bills. You should be able to see what's available without giving your phone number to a broker.
- ✓ See commercial rates for your state at a glance
- ✓ Check if your state lets you shop for a provider
- ✓ Benchmark your bill against your industry
Multi-Location Operators
Property managers, franchise owners, multi-site operators. Compare rates across markets so each location signs the right plan when its contract comes up.
- ✓ Compare rates across states and TDU territories
- ✓ Track year-over-year rate trends by market
- ✓ Identify which locations are overpaying
Procurement & Facilities
You run RFPs and manage energy budgets. Use this data to benchmark vendor bids against actual market rates before you sign anything.
- ✓ Benchmark bids against EIA state averages
- ✓ Calculate load factor for demand charge analysis
- ✓ Download rate data for internal reporting
Calculate Your Load Factor
Load factor is the single most important number on a commercial electric bill. It determines your demand charges and how competitive your rate quotes will be.
Enter two numbers from your bill
That's it. Two numbers.
Sample: a 2,500 sq ft retail store
Load Factor by Industry
How different business types compare. A higher load factor means steadier usage, lower demand charges, and better rate quotes. Load factor is the ratio of your average demand to your peak demand — it measures how evenly you use electricity. Demand share is the percentage of your total bill that comes from demand charges rather than energy charges.
Data Center
Manufacturing
Hospital / Healthcare
Grocery / Supermarket
Hotel / Hospitality
Warehouse / Distribution
Other
Office
Retail
Restaurant
School / Education
Anatomy of a Commercial Electric Bill
Most commercial bills have four or five line items that matter. Everything else is taxes and riders.
Energy Charges
Your total kWh multiplied by the supply rate. This is the part you can shop for in deregulated states. Fixed-rate contracts lock this number in for 1–3 years.
Demand Charges
Your single highest 15-minute power draw in the billing period, multiplied by the demand rate (typically $8–15/kW). One bad spike sets your cost for the entire month.
Transmission & Distribution
What the utility charges to move power from the plant to your meter. Regulated and non-negotiable — the same for everyone in your service territory.
Taxes, Riders & Fees
State and local taxes, renewable energy surcharges, nuclear decommissioning fees, system benefit charges. Generally small relative to energy and demand.
| Business Type | Typical Monthly kWh | Est. Monthly Bill |
|---|---|---|
| Small office (1,500 sq ft) | 1,500 – 2,500 | $212 – $353 |
| Retail store | 3,000 – 6,000 | $424 – $847 |
| Restaurant | 4,000 – 8,000 | $565 – $1,130 |
| Grocery store | 15,000 – 40,000 | $2,118 – $5,648 |
| Office building (10,000 sq ft) | 10,000 – 20,000 | $1,412 – $2,824 |
| Warehouse / distribution | 20,000 – 50,000 | $2,824 – $7,060 |
| Manufacturing facility | 50,000 – 500,000 | $7,060 – $70,600 |
| Data center | 500,000 – 5,000,000+ | $70,600 – $706,000+ |
Types of Commercial Electricity Plans
Businesses in deregulated markets can choose from four main plan structures, each designed for different operational needs and risk tolerances.
Fixed-Rate Plans
Lock in a consistent ¢/kWh rate for 6 to 60 months. Your energy rate stays the same regardless of market fluctuations, providing budget certainty and protection from price spikes.
Variable / Index Plans
Your rate floats with the wholesale market, usually updated monthly. Can be cheaper in mild months, but you're exposed to spikes during summer peaks and winter storms — rates can surge 3–5x.
Block & Index Plans
A hybrid: you fix a price for a predetermined block of expected monthly usage. Consumption above the block is priced at the floating wholesale rate. Balances cost certainty with market upside.
Time-of-Use Plans
Rates vary between peak and off-peak hours — often 30–50% cheaper during nights, weekends, and holidays. Rewards businesses that can shift operations to off-peak windows.
How to Get the Best Commercial Rate
No phone calls. No quote forms. Three things to figure out.
Check your market
14 states have deregulated commercial electricity markets. If yours is one of them, you can choose your supplier and shop for the supply portion of your bill. If it's not, focus on load factor and demand management — that's where the savings are.
Compare at the same usage level
Rates look different at different consumption levels. Compare plans at your actual monthly kWh so you're comparing real numbers, not marketing rates. Check contract length, base fees, and early termination penalties before you sign.
Sign direct, start 60–90 days early
Pick your provider and enroll directly — no middleman margin. Start shopping two to three months before your current contract expires. Wait too long and you'll end up on holdover rates that cost 2–3x your contract price.
Frequently Asked Questions
Which state has the cheapest business electricity?
North Dakota has the lowest average commercial rate at 7.44¢/kWh. Among deregulated states where businesses can shop for providers, Texas offers some of the most competitive rates with energy-only pricing from 4.56¢/kWh.
Can my business choose its electricity provider?
If you're in one of the 14 states with deregulated electricity markets: Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Texas, Washington DC. In these states, businesses can choose from competing suppliers and typically save 10–25% on the supply portion of their bill.
What is load factor and why does it matter?
Load factor is the ratio of your average electricity demand to your peak demand: total kWh / (peak kW × hours in billing period). A higher load factor means steadier usage, which makes your business more attractive to providers and earns lower per-kWh rates. Improving load factor by 10 points can cut your bill by 8–15%.
How do demand charges work?
Your utility records your highest 15-minute power draw each month. That single peak (in kW) gets multiplied by the demand charge rate (typically $8–15/kW). One bad spike sets your charge for the entire month. Demand charges represent 30–70% of a large commercial bill.
What size business needs to worry about demand charges?
Generally, businesses with peak demand above 20–50 kW (varies by utility) are placed on rate schedules with demand charges. In practice, if your monthly bill is over $1,000–2,000, you almost certainly have demand charges. Restaurants, manufacturing, hospitals, warehouses, hotels, and large office buildings all typically see demand charges.
How much does the average U.S. business spend on electricity?
The average commercial electricity bill is approximately $862/month at the national average rate of 13.51¢/kWh. Actual bills range from $150/month for a small office to $500,000+ for a large data center.
How can my business lower its electricity costs?
The highest-impact strategies: 1) In deregulated states, compare providers — switching alone saves 15–30%. 2) Manage peak demand to reduce demand charges. 3) Improve load factor by spreading consumption more evenly. 4) Invest in energy efficiency (LED lighting, HVAC optimization). 5) Consider on-site solar or a PPA. 6) Start shopping 60–90 days before contract expiration to avoid expensive holdover rates.
When is the best time to shop for a commercial electricity contract?
During shoulder months — spring (March–May) and fall (September–November) — when wholesale demand is lower and providers offer more competitive rates. Avoid signing during peak summer. Start shopping 60–90 days before your current contract expires to avoid holdover rates that are often 2–3x your contracted rate.
Why are commercial electricity rates lower than residential?
Businesses pay less per kWh (13.51¢ vs. 18.83¢ nationally) for three reasons: higher volume consumption, more predictable usage patterns, and higher voltage delivery requiring less transformation. The national commercial rate is 28% lower than residential.
What is a good commercial electricity rate?
The national average is 13.51¢/kWh. Rates range from 7.44¢ in North Dakota to 38.79¢ in Hawaii. In deregulated Texas, energy-only rates for commercial accounts can go as low as 4–5¢/kWh. A "good" rate depends on your state, load factor, and contract terms.
Can my business get 100% renewable energy?
Yes, regardless of location. Options include on-site solar, community solar subscriptions, Virtual PPAs with remote renewable projects, green tariff programs, and Renewable Energy Certificates. In deregulated states, many providers offer competitive 100% renewable plans with little to no price premium.
How do I read my commercial electricity bill?
Focus on four sections: energy charges (per-kWh supply cost — the competitive portion), delivery/T&D charges (regulated grid fees), demand charges (based on peak kW draw), and taxes/fees/riders. For the biggest savings, focus on energy charges (shop in deregulated markets) and demand charges (reduce peak usage).
Get competitive commercial rates
Compare quotes from licensed suppliers in your area.