Electricity Rates Per kWh by State (2026 Data)

The national average electricity rate reached 16.6 cents per kilowatt-hour in 2024, according to the U.S. Energy Information Administration.^[1] That's the residential average—commercial and industrial customers pay less because they buy in bulk.

But "average" is misleading. Nobody actually pays the national average. Your rate depends on where you live, which utility serves your address, and whether you've shopped for a competitive plan. A homeowner in Houston might pay 11¢/kWh on a fixed plan while someone in Boston pays 28¢ on their utility's default rate.

Think of 16.6¢ as a benchmark. If you're paying more, there may be room to save. If you're paying less, you're doing something right.

Several states consistently rank below 12¢/kWh for residential electricity. Utah, Idaho, Wyoming, and Washington lead the pack, all hovering around 10-11¢ per kWh.^[2]

The pattern is clear: states with abundant hydroelectric power or natural gas production tend to have cheaper electricity. Washington state gets nearly 70% of its power from hydroelectric dams—fuel cost is essentially zero. Wyoming and North Dakota benefit from coal and wind resources close to home.

Texas averages around 13-14¢/kWh statewide, but deregulated areas offer plans as low as 8-10¢ if you shop. The catch: variable rates in Texas can spike during extreme weather, so the "average" masks real volatility.

Hawaii tops every list at 35¢+ per kWh. The reason is simple: nearly everything is imported by ship. Oil, natural gas, even coal—all shipped across the Pacific. That logistics cost lands directly on your bill.

Connecticut, Massachusetts, Rhode Island, and California round out the top five, all exceeding 24¢/kWh.^[2] New England states face a combination of limited pipeline capacity for natural gas, high demand, and aggressive renewable mandates that add costs during the transition.

Massachusetts residents pay roughly 28¢/kWh on default utility rates—but competitive suppliers in deregulated areas often offer plans in the 14-18¢ range. That gap between default and shopped rates represents real money left on the table.

Five factors drive your rate per kWh, and most people only think about one or two.

Fuel mix matters most. Utilities burning natural gas pass volatile fuel costs to you. Hydro and nuclear have near-zero fuel costs, keeping rates stable.

Infrastructure age is the silent driver. Older grids need expensive upgrades. Those capital costs get baked into delivery charges that can exceed supply costs.

Regulation structure determines whether you can shop. In deregulated states like Texas, Ohio, and Pennsylvania, competition pushes supply rates down. In regulated states, the utility sets the price.

Demand patterns and weather create seasonal swings. Summer AC loads in Arizona or winter heating in Maine both spike wholesale prices—and your bill follows.

About 17 states plus Washington D.C. have some form of electricity deregulation, and this directly impacts what you pay per kWh.

In regulated states, your utility generates, transmits, and delivers your power. The state's public utility commission sets rates through a formal review process. You have one option—take it or leave it.

In deregulated states like Ohio, Pennsylvania, Massachusetts, and Texas, the supply portion of your bill is open to competition. Multiple suppliers compete for your business, which typically drives the supply rate 10-20% below the utility's default offer.

The delivery charge stays the same regardless. But since supply makes up 40-60% of your total bill, shopping in a deregulated state can save $200-500 per year on a typical household bill.

A low rate per kWh doesn't guarantee a low bill. Two households paying the same 12¢/kWh can have wildly different monthly totals.

The math is straightforward: monthly cost = rate × usage. A 1,500-square-foot home using 900 kWh/month at 12¢ pays $108. A 3,000-square-foot home using 2,000 kWh at the same rate pays $240.

Watch for hidden charges that inflate your effective rate. Monthly service fees ($5-15), demand charges, fuel adjustment riders, and renewable energy surcharges all add up. Divide your total bill by total kWh consumed to find your all-in rate—that's the number that actually matters for comparison.

When shopping plans, always calculate the all-in cost at your typical usage level, not just the advertised rate.

Start with the biggest lever: shop your supply rate if you live in a deregulated state. Texas, Ohio, Pennsylvania, and Massachusetts all allow residential switching. Tools like ElectricRates.org pull real-time rates so you can compare in minutes.

Lock in fixed rates when prices are low. Winter months often bring cheaper plans because demand drops. A 12-month fixed rate protects you from summer spikes.

Reduce usage to compound savings. LED bulbs, smart thermostats, and sealing air leaks cut consumption 10-25% without sacrificing comfort. At 16¢/kWh, cutting 200 kWh/month saves $384/year.

Finally, check if your utility offers time-of-use rates. Running your dishwasher and laundry after 9pm could shave 2-4¢/kWh off those loads.