Electricity Cost by State 2025

Electricity is generated by three main methods in the United States: fossil fuels, nuclear energy, and renewable energy. It is then used throughout the country for various tasks, from lighting up our homes to charging our cars and phones. However, has anyone taken the time to consider how much electricity costs in each state? If they had, then they would discover that each state has various methods of calculating these costs. They would also realize how much electricity is generated and used within each area, and the price it is costing people living there.

National Average

Compared to all the states and territories in the country, the national average cost of electricity is 13.19 cents per kilowatt-hour (kWh) as of April 2020. This number is derived based on many factors in the United States. Certain factors, like market activity and locations, can vastly affect the national price of electricity over time. The same characteristics can also be used to influence the electricity price in each state. Some other components used to determine electrical costs include:

• Fuel Costs
• Power Plant Costs
• Weather
• Seasons

States Above The Average

Since location is one of the more prominent factors that drive electrical costs, it makes sense that states that produce and use more electricity will have a higher average rate. For these states and regions, the price of electricity could run from 13.21 to 32.76 cents per kWh. In the country, 19 states and Washington D.C. have electricity prices within this range. Although some of the areas have experienced a percentage increase in their costs, others are experiencing an astonishing decrease in electrical expenses. Some of the states that had the most significant decrease in their prices between June 2017 and June 2018 include:

• Wisconsin (-5.12%)
• Maryland (-2.11%)
• New Jersey (-2.00%)
• Washington D.C. (-1.42%)

States Below The Average

On the contrary, states that produce and use less energy will have the lowest costs in the country. For these states, the price of electricity can run from 9.37 to 13.16 cents per kWh. These low prices can stem from multiple factors, from the cost of living in the area to the prices of various markets in the regions. Although these are the states with the most affordable energy, some of them have been experiencing a slight percentage increase. This small increase in their prices occurred from June 2017 to June 2018. Ten states below the average increased their rates during this period, including:

• Virginia (+4.11%)
• Arizona (+4.03%)
• Texas (+1.88%)
• Oklahoma (+1.80%)