Electricity Rates by State

The average U.S. residential electricity rate is 17.65¢/kWh as of June 2026, but the price you pay ranges from 11.64¢ in North Dakota to 43.00¢ in Hawaii — a nearly 4x difference. States with hydroelectric power like Idaho and Washington enjoy the lowest rates, while island states like Hawaii pay a premium for imported fuel. Commercial rates average 19% less than residential nationwide. The table below lists the current residential and commercial rate for all 50 states and D.C.

Which States Have the Most Expensive Electricity?

Hawaii has the most expensive electricity in the U.S. at 43.00¢/kWh—144% above the national average—because it relies on imported petroleum for most of its power generation. Island geography means no access to mainland natural gas pipelines or neighboring grid interconnections. California (33.22¢) ranks second, driven by aggressive renewable mandates, wildfire infrastructure costs, and high demand. Maine (32.17¢) jumped to third, surpassing Connecticut, after a 22.6% year-over-year increase. Rounding out the top ten: Connecticut (30.77¢), Massachusetts (30.46¢), New York (29.99¢), Rhode Island (29.45¢), New Hampshire (26.52¢), Alaska (25.79¢), and the District of Columbia (23.97¢). Six of the ten most expensive states are in New England, and eight are in the broader Northeast, where winter heating demand, aging grid infrastructure, and reliance on imported natural gas create chronic price pressure.

Which States Have the Cheapest Electricity?

North Dakota has the cheapest residential electricity in the U.S. at 11.64¢/kWh—34% below the national average. The state’s low rates are driven by abundant wind energy, lignite coal generation, and low population density that keeps grid costs manageable. Nebraska (11.79¢) follows closely, benefiting from public power districts and hydroelectric resources. Then come Missouri (12.17¢), Idaho (12.63¢), Arkansas (12.73¢), Iowa (12.74¢), Tennessee (12.82¢), Louisiana (12.87¢), Oklahoma (12.89¢), and Wyoming (13.04¢). The Midwest and South Central regions dominate this list, where low-cost fuel sources (natural gas, hydro, coal, wind), minimal grid congestion, and lighter regulatory overhead keep rates well below average.

For commercial rates, the ranking shifts: North Dakota (6.73¢) is the cheapest, followed by Idaho (8.27¢) and Texas (8.69¢). Texas stands out with a 6.72¢ gap between its residential and commercial rates, reflecting its deregulated ERCOT market where competition among 100+ retail providers drives commercial pricing especially low.

The five U.S. regions rank from cheapest to most expensive for residential electricity: South Central (13.48¢), Southeast (14.82¢), Midwest (15.19¢), West (18.87¢), and Northeast (25.53¢). These patterns are driven by fuel sources, infrastructure age, and regulatory structure — the Northeast pays 45% more than the national average, while the South Central region enjoys rates 24% below it.

U.S. electricity rates have risen 17% in four years, from 15.04¢/kWh in 2022 to 17.65¢/kWh in 2026. Year-over-year increases were +6.4% (2023), +3.0% (2024), +5.0% (2025), and +2.0% (2026, through Feb). This sustained climb reflects fuel cost inflation, grid modernization investments, and surging demand from data centers and electric vehicle adoption.

The 2026 figure of 17.65¢ represents the February 2026 monthly rate (the most recent complete state-level EIA data), not a full-year average. Based on data through February, the year-over-year increase is +7.4% compared to February 2025. The 2022–2025 figures are full-year annual averages. Rising natural gas prices and unprecedented electricity demand growth continue to drive rates higher. Record data center construction pushed commercial and industrial consumption higher, while grid hardening investments in response to extreme weather added infrastructure costs that utilities passed through to ratepayers.