Pricing Guide

Electricity Cost Per kWh by State

The average U.S. electricity rate is 16.6¢ per kWh, but prices range from 8¢ to 33¢ depending on where you live. Here's what you're paying compared to the rest of the country.

Last updated: February 17, 2026 12 min read
16.6¢
National Average
33.2¢
Highest (Hawaii)
8.9¢
Lowest (N. Dakota)
3.7x
Price Difference

In This Guide

Electricity Cost Per kWh by State (2026)

Electricity prices vary dramatically across the United States. States with abundant hydropower, natural gas, or wind energy typically have the lowest rates, while island states and those relying on imported fuel pay significantly more.

Highest (25¢+) High (20-25¢) Moderate (13-20¢) Low (10-13¢) Lowest (<10¢)
State Rate (¢/kWh) vs National Avg Market Type
Hawaii
33.2¢ +100% Regulated
California
28.5¢ +72% Regulated
Massachusetts
26.8¢ +61% Deregulated
Connecticut
25.7¢ +55% Regulated
Rhode Island
24.9¢ +50% Regulated
New Hampshire
24.2¢ +46% Regulated
Alaska
23.8¢ +43% Regulated
Vermont
21.5¢ +30% Regulated
New York
21.2¢ +28% Regulated
Maine
20.8¢ +25% Regulated
New Jersey
18.4¢ +11% Regulated
Pennsylvania
17.2¢ +4% Deregulated
Michigan
16.9¢ +2% Regulated
Maryland
16.5¢ -1% Regulated
Ohio
14.8¢ -11% Deregulated
Illinois
14.5¢ -13% Regulated
Florida
14.2¢ -14% Regulated
Arizona
13.8¢ -17% Regulated
Colorado
13.5¢ -19% Regulated
Georgia
13.2¢ -20% Regulated
Virginia
12.9¢ -22% Regulated
North Carolina
12.6¢ -24% Regulated
Indiana
12.4¢ -25% Regulated
Texas
12.2¢ -27% Deregulated
Missouri
12.0¢ -28% Regulated
Tennessee
11.8¢ -29% Regulated
Kentucky
11.5¢ -31% Regulated
Arkansas
11.2¢ -33% Regulated
Louisiana
10.8¢ -35% Regulated
Oklahoma
10.5¢ -37% Regulated
Washington
10.2¢ -39% Regulated
Idaho
9.8¢ -41% Regulated
Utah
9.5¢ -43% Regulated
Wyoming
9.2¢ -45% Regulated
North Dakota
8.9¢ -46% Regulated
Source: U.S. Energy Information Administration (EIA), 2026 residential rates

What Affects Your Electricity Rate

The price you pay per kWh isn't random—it's determined by a complex mix of factors from fuel costs to where you live. Understanding these can help you find savings opportunities.

Fuel Source

States relying on natural gas or coal typically have lower rates than those using oil or importing power.

High Impact

Infrastructure Age

Older grid infrastructure requires more maintenance and upgrades, increasing costs passed to consumers.

High Impact

Regulatory Environment

Deregulated markets often offer competitive rates, while regulated monopolies set fixed pricing.

High Impact

Climate & Demand

Extreme temperatures increase peak demand, which can drive up rates especially in summer and winter.

Medium Impact

Renewable Mandates

States with aggressive renewable energy requirements may have higher short-term costs during transition.

Medium Impact

Population Density

Rural areas cost more to serve per customer, while dense urban areas spread infrastructure costs.

Medium Impact

Transmission Distance

Power that travels long distances from generation to consumption loses energy and incurs costs.

Low Impact

Savings in Deregulated States

In deregulated electricity markets, you can choose your energy provider and often find rates significantly below the state average. Here's what's possible in states where we help customers compare rates:

Texas

State Average 12.2¢/kWh
Lowest Available 8.5¢/kWh
Active Providers 100+
Potential Savings Up to 30%
Compare Texas Rates

Ohio

State Average 14.8¢/kWh
Lowest Available 10.2¢/kWh
Active Providers 50+
Potential Savings Up to 25%
Compare Ohio Rates

Pennsylvania

State Average 17.2¢/kWh
Lowest Available 12.8¢/kWh
Active Providers 40+
Potential Savings Up to 20%
Compare Pennsylvania Rates

Massachusetts

State Average 26.8¢/kWh
Lowest Available 21.5¢/kWh
Active Providers 20+
Potential Savings Up to 15%
Compare Massachusetts Rates

Why Deregulation Means Lower Prices

In regulated markets, you're stuck with your utility's rate. In deregulated markets, dozens of providers compete for your business, driving prices down. The catch? You have to actively shop and compare—the default utility rate is rarely the best deal.

How to Find Your Current Rate

Not sure what you're paying? Here's how to find your actual cost per kWh:

1

Check Your Electric Bill

Look for a line item called "Energy Charge," "Supply Charge," or "Price per kWh." This is your base electricity rate. Note that delivery charges and fees are separate.

Quick calculation: Total energy charges ÷ Total kWh used = Your rate per kWh

2

Texas: Check the Electricity Facts Label (EFL)

Texas requires providers to show your "all-in" rate at 500, 1000, and 2000 kWh usage levels. This includes all fees and gives you a true cost comparison.

Learn how to read an EFL
3

Consider Your All-In Cost

Your actual cost per kWh includes more than just the energy rate. Add in:

  • Delivery/transmission charges (typically 3-5¢/kWh)
  • Base/customer charges ($5-15/month fixed fee)
  • Taxes and surcharges (varies by location)

How to Get a Lower Electricity Rate

Switch Providers

In deregulated states, comparing and switching to a new provider can save 20-30% instantly. Most switches are free and take 1-2 billing cycles.

Time Your Usage

Time-of-use plans offer lower rates during off-peak hours (nights, weekends). If you can shift laundry and dishwashing, you'll pay less per kWh.

Lock In a Fixed Rate

Fixed-rate plans protect you from price spikes. Lock in when rates are low (typically spring/fall) for 12-24 months of predictable pricing.

Reduce Usage

Some plans offer bill credits at certain usage thresholds. Upgrading to efficient appliances and improving insulation can move you into lower rate tiers.

Ready to Lower Your Rate?

Enter your ZIP code to see available rates in your area. Compare dozens of plans and find savings in under 2 minutes.

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Frequently Asked Questions

What is a good price per kWh for electricity?
A good electricity rate depends on your location. The national average is about 16.6¢ per kWh. If you're paying below your state's average, you have a competitive rate. In Texas, rates as low as 8-10¢/kWh are available. In higher-cost states like Massachusetts, 20-22¢/kWh would be considered good.
Why is electricity so expensive in some states?
Electricity costs vary by state due to fuel sources (states relying on oil pay more), infrastructure age, regulatory environment, population density, and renewable energy mandates. Hawaii has the highest rates (33¢/kWh) because it must import fuel, while states like Idaho with hydropower have rates under 10¢/kWh.
How do I find my cost per kWh on my electric bill?
Look for 'Energy Charge' or 'Price per kWh' on your bill. Divide your total energy charges by total kWh used. In Texas, check the Electricity Facts Label (EFL) which shows your all-in rate at 500, 1000, and 2000 kWh usage levels.
What state has the cheapest electricity per kWh?
North Dakota, Wyoming, Utah, and Idaho consistently have the lowest electricity rates, typically under 10¢ per kWh. These states benefit from abundant hydropower, natural gas, or wind resources. Louisiana and Oklahoma also have low rates around 10-11¢/kWh.
Is electricity cheaper in deregulated states?
Deregulated states often offer lower rates through competition. In Texas, you can find rates 20-30% below the state average by shopping providers. However, you must actively compare and switch to get savings—the default rate from your utility is typically not the cheapest option.
How much does 1 kWh of electricity cost on average?
The U.S. average cost of electricity is about 16.6 cents per kWh as of 2026. However, this varies dramatically by state—from under 9¢/kWh in North Dakota to over 33¢/kWh in Hawaii. Your actual rate also depends on your usage tier and rate plan type.
Why did my electricity rate go up?
Electricity rates increase due to rising fuel costs (especially natural gas), infrastructure investments, increased demand, renewable energy compliance costs, and inflation. Seasonal demand peaks in summer and winter can also trigger higher rates in some markets.
How can I get a lower electricity rate?
In deregulated states, compare rates from multiple providers and switch to a lower-cost plan. Look for fixed-rate plans to lock in pricing. Consider your usage patterns—some plans offer lower rates for off-peak usage. Also check for prepaid plans or plans with usage credits.

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