Electricity Rates by State (2026): Where Yours Ranks

The national average electricity rate stands at 17.91 cents per kilowatt-hour in 2026, 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 12¢/kWh on a fixed plan while someone in Boston pays 30¢ on their utility's default rate.

Think of 17.91¢ as a benchmark. If you're paying more, there may be room to save. If you're paying less, you're doing something right.

Here is every state ranked from cheapest to most expensive, using residential averages as of mid-2026 from EIA Electric Power Monthly Table 5.6.B.^[1] Figures are rounded to the nearest 0.1 cent and shift month to month, so treat them as a ranking, not a quote. States marked deregulated let you shop your supply rate; linked states have shopping guides on this site.

The spread is enormous: a Hawaii household pays more than three and a half times the North Dakota rate for the same kilowatt-hour. And in the deregulated states, the average above blends default utility rates with shopped rates, so the plan you can actually sign up for often beats the number in this table.

Several states consistently rank at or below 12¢/kWh for residential electricity. North Dakota, Utah, Washington, and Wyoming lead the pack, all hovering around 11-12¢ 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, so fuel cost is essentially zero. Wyoming and North Dakota benefit from coal and wind resources close to home.

Texas averages around 15-16¢/kWh statewide, but deregulated areas offer fixed plans well below that 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 roughly 41¢ 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.

California, Massachusetts, Connecticut, and Rhode Island round out the top five, all exceeding 28¢/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 average around 31¢/kWh, but competitive suppliers in deregulated areas often price the supply portion well below the utility's default rate. 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 18 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 current 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 the 17.91¢ national average, cutting 200 kWh/month saves about $430/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.