Electricity is a necessity for every home in America to power everyday life. Homeowners should be familiar with their state’s average electricity rate to understand their monthly bills and find a utility provider who charges a fair price. The electric price in US states can vary, which means the average electric rate in Texas can be different than the rate in Oklahoma or any other US state.

Electric rates in US states differ based on several factors, including population, extreme weather conditions, and seasonality. For example, electric usage usually spikes during a scorching Texas summer or a freezing winter. Understanding the variables that can affect electricity prices can benefit homeowners who plan to move to a state with different electricity rates than they’re used to.

Average Electric rate by State in the US

The most recent data from the US Energy Information Administration (EIA) shows the average retail price (cents/kWh) of each US state. The average retail price is the average price (cents) paid by residential electric customers per kilowatt-hour.

State Average Retail Price (cents/kWh)

Alabama

9.84

Alaska

19.82

Arizona

10.44

Arkansas

8.32

California

18.00

Colorado

10.27

Connecticut

19.13

Delaware

10.24

District of Columbia

11.90

Florida

10.06

Georgia

9.93

Hawaii

27.55

Idaho

7.99

Illinois

9.75

Indiana

9.92

Iowa

8.97

Kansas

10.38

Kentucky

8.58

Louisiana

7.51

Maine

13.54

Maryland

11.15

Massachusetts

18.19

Michigan

12.21

Minnesota

10.57

Mississippi

9.13

Missouri

9.64

State Average Retail Price (cents/kWh)

Montana

9.13

Nebraska

8.97

Nevada

8.33

New Hampshire

16.63

New Jersey

13.63

New Mexico

9.33

New York

14.87

North Carolina

9.43

North Dakota

8.53

Ohio

9.44

Oklahoma

7.63

Oregon

8.82

Pennsylvania

9.70

Rhode Island

18.54

South Carolina

9.90

South Dakota

10.06

Tennessee

9.52

Texas

8.36

Utah

8.27

Vermont

16.33

Virginia

9.16

Washington

8.33

West Virginia

8.75

Wisconsin

10.82

Wyoming

8.27

Differences in Electricity Rates

As mentioned before, different variables affect the electric rates of US states. However, some states are not so lucky and suffer from high electricity rates, leading to high monthly electricity costs. Expensive electricity costs can make people avoid considering living in those states. In addition, high prices could reason some homeowners to move to a state with a lower electric rate.

Factors That Contribute to High Costs of Electricity

Costs of energy prices depend on energy generation, energy distribution, and energy transmission.

Some causes of high electricity rates:

  • Changes in electricity demand: changes in household behavior, such as demand for digitally connected devices. The income of households can also affect electricity rates by the availability of more home appliances that need more energy.
  • Fuel costs: natural gas prices change and can increase electricity rates when it becomes in more demand from possible supply chain disruptions or constraints.
  • Power plants: This includes the necessary maintenance to properly design, build, and run a power plant. Another factor is the infrastructure to transfer electricity from the power plant to homes in the area.
  • Weather conditions: Demand for heating and cooling during the summer or winter can impact electricity rates. Also, water droughts and drops in the wind can increase the electricity rate.
  • Regulations: State governments regulate their prices differently.

 

10 States with the Highest Monthly Electric Costs

State $ Monthly Electric Cost

Hawaii

$342.21

Connecticut

$237.53

Rhode Island

$230.44

California

$229.54

Massachusetts

$229.54

New Hampshire

$198.69

Alaska

$198.24

New York

$193.57

Maine

$187.92

Vermont

$172.31

 

Factors That Contribute to Low Costs of Electricity

Most homeowners would prefer to live in an area that can provide their much-needed electricity at a lower price than the states with the most expensive electricity rates. States with the lowest energy rates offer conditions for energy to be much cheaper. These conditions include clean energy and less densely populated areas. In addition to these couple of conditions, other conditions can impact electricity rates.

Some causes of low electricity rates:

  • Fuel costs: There are no disruptions or constraints for natural gas or petroleum fuels, which can handle more demand.
  • Power plants: There are sufficient power plants and energy distribution systems to meet the area’s needs.
  • Weather conditions: These conditions are suitable for clean energy, such as heavy rain and high wind, to supply the needed power.
  • Regulations: State governments regulate prices and offer incentives to lower costs, instead of leaving energy costs unregulated.

10 States with the Lowest Monthly Electric Costs

State

$ Monthly Electric Cost

North Dakota

$86.47

Idaho

$87.46

Nebraska

$87.43

Missouri

$89.70

Washington

$89.97

Arkansas

$91.85

Wyoming

$92.57

Oklahoma

$93.29

Montana

$93.47

Louisiana

$94.19

 

A Closer Look at Monthly Electric Costs

The average retail price (cents/kWh) shows the difference in the electricity rates across US states. Still, it is better to see the dollar amount of monthly electric cost to understand the impact better.

Hawaii has one of the highest average retail prices (cents/kWh). Hawaii’s monthly electric cost in 2022 is $342.21. The price is much greater than the US state with one of the lowest average retail price (cents/kWh), Louisiana. Louisiana’s monthly electric cost in 2022 is $94.19. Comparing Hawaii and Louisiana shows a $248.02 difference in the amount homeowners pay for electricity on average.

To better understand the rest of the homeowners around the US, consider Texas. Texas has a rate near the average electricity rate of the entire US.

The US Energy Information Administration data shows that the average price per kilowatt-hour is 10.59 cents. The average electric rate in Texas is 8.36 cents per kilowatt-hour. In 2022, the average electric bill in Texas is around $110.15 per month.

Comparing these three states shows the differences in homeowners’ monthly payments based on their state’s electricity rate. It also demonstrates the range between the highest electricity rate and the lowest electricity rate, which emphasizes the importance of understanding electricity rates. The cost highly impacts the lives of homeowners.

The fluctuating electric rates in US states can be confusing to understand due to the various conditions that can cause an impact on the price of electricity. The energy rate in 2021 will not be the same as the energy rate in 2022.

Still, homeowners should take the time to consider and understand the factors to know what to look out for when considering moving out of state. Understanding electricity rates can even be helpful when homeowners are considering something as simple as changing a light bulb. A homeowner who is conscious of their state’s electricity rates and understands cents/kWh has the wisdom of spending extra to save more.

For example, the homeowner can choose to buy a more expensive light bulb that operates at fewer watts than a cheap light bulb that consumes more energy. As a result, the homeowner will save more money long-term.

Now Power | Powering Texas

Here at Now Power, we want to help Texan homeowners save on their electric bills. The average electric rate in Texas can result at $110.15 per month. But, once again, this is only an average. Paying $110.15 per month is not the case for some, and they pay more than the average. Our mission is to provide affordable prepaid electricity to residents living in deregulated areas of Texas.

The electric price in Texas can vary due to the different weather conditions. The weather can produce extreme heat or cold conditions throughout the year, which causes homeowners to use their home heating or cooling systems year-round. As a result, we strive for our team at Now Power to give Texas homeowners peace of mind when using their home heating and cooling systems.

Nowadays, people work in remote positions, use their electronic devices for school work, and even attend university through online classes. So now more than ever, you need reliable and affordable electricity to thrive in today’s society.

With the help of our team, you can attain a lower than average electric rate in Texas and save hundreds of dollars every year. In addition, our team knows how difficult it can be to learn about energy, which is why we have superior customer support. Our customer support team can help you find what’s important to you and the best way to save money on your electric bill.

Not only can we help save you money, but we can also help you keep track of what’s meaningful to you. For example, our team tracks your energy usage and the amount of money you spend on your electricity through our online account management portal.

Learn More about Your Electricity Rate in Texas

Are you looking for more information on the average electric price in your area? Enter your zipcode on our website, and see the best energy plans Now Power offers to your neighborhood. Sign up today to learn how our Now Power team can help you start saving on your energy costs through our easy online enrollment system.

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