Electricity Rates by State

The average U.S. electricity rate is 18.05¢/kWh for residential customers and 14.12¢/kWh for commercial customers as of May 2026. Rates range from 12.44¢/kWh in Louisiana to 42.00¢/kWh in Hawaii. The national average has risen 5.4% year-over-year. See the full state-by-state rate table above for every state’s current residential and commercial rates.

Louisiana has the cheapest residential electricity at 12.44¢/kWh—31% below the national average—followed by Idaho (12.51¢), North Dakota (12.87¢), Missouri (13.01¢), and Tennessee (13.12¢). For commercial rates, North Dakota is cheapest at 7.44¢/kWh. Low rates in these states are driven by abundant natural gas, hydroelectric power, and low population density. See the full top 10 cheapest states.

Hawaii has the most expensive electricity at 42.00¢/kWh—133% above the national average—because it imports petroleum for most power generation. California (33.75¢), Massachusetts (31.51¢), Rhode Island (31.30¢), and Maine (29.55¢) round out the top five. Six of the ten most expensive states are in New England, with the Northeast dominating the list overall. Aging grid infrastructure and reliance on imported natural gas drive costs higher across the region. See the full top 10 most expensive states.

High electric bills are typically caused by above-average rates in your state, seasonal usage spikes (AC in summer, heating in winter), inefficient appliances, or being on your utility’s default rate instead of a competitive plan. In deregulated states, switching providers can save 15–30%. Check your cost per kWh on your bill and compare it to your state’s average in the rate table above—if you’re paying more, you may be overpaying.

Electricity costs an average of 18.05 cents per kWh for residential customers in the U.S. as of 2026. The cost per kWh varies dramatically by state: from 12.44¢ in Louisiana to 42.00¢ in Hawaii. Commercial rates average 14.12¢/kWh nationally, about 22% less than residential. Your actual rate also depends on your usage tier, plan type, and whether you live in a regulated or deregulated market.

Yes, if you live in a deregulated state. 14 states plus D.C. have competitive electricity markets where you can shop for a provider: Texas, Pennsylvania, Ohio, Illinois, New York, New Jersey, Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, Rhode Island, and parts of others. Customers in deregulated markets save 15–30% on average by comparing plans. Your utility still delivers the power and handles outages—only the generation company changes.

U.S. electricity rates rose 5.4% from 2025 to 2026, driven by rising natural gas prices, grid modernization and weather-hardening investments, increased demand from data centers and electric vehicles, and renewable energy transition costs. California (+8.9%), Rhode Island (+8.4%), and Maine (+8.1%) saw the steepest increases. See the historical trend section for how rates have changed over the past five years. Data sourced from the U.S. Energy Information Administration (EIA).

A deregulated electricity market is one where consumers can choose their electricity supplier instead of being locked into a single utility. Your local utility still delivers the power and maintains the grid, but you pick which company generates it. Texas, Ohio, Pennsylvania, and Massachusetts are the largest deregulated markets. Shopping for a competitive rate in these states can lower your bill by 15–30%. See our deregulated energy markets map for the full list.

The fastest way to lower your electricity bill is to compare providers in deregulated states—switching can save 15–30% with zero lifestyle changes. Other strategies: switch to LED lighting, upgrade to Energy Star appliances, install a smart thermostat, seal air leaks, shift usage to off-peak hours, and consider rooftop solar if you own your home. Many utilities also offer free energy audits to identify savings opportunities.