Electricity Cost by State

The average cost of electricity varies widely across the United States, influenced by factors such as local weather conditions, seasonal changes, fuel costs, and power plant costs. These variances establish a unique electricity prices landscape, ranging from as low as 8.24 cents per kilowatt-hour (kWh) to as high as 39.72 cents per kWh. This disparity becomes more apparent when we compare states and regions that heavily depend on fossil fuels for electricity generation to those that have diversified energy portfolios or abundant access to renewable resources.

• Cheapest Electricity: The states of Wyoming, North Dakota, and Idaho boast the lowest costs of electricity in the U.S., with prices hovering around 8.24, 8.42, and 8.51 cents/kWh respectively. These states are rich in diverse energy resources, including vast amounts of coal and substantial hydroelectric power.
• Average Cost: Nationwide, the average cost of electricity stands at 13.19 cents per kWh.
• Coast-to-Coast Disparity: The highest costs of electricity are primarily found on the east and west coasts - with Hawaii leading at 39.72 cents/kWh, followed by California at 22.33 cents/kWh and Massachusetts at 21.27 cents/kWh. This disparity could be attributed to regional differences in energy policies, fuel availability, and infrastructure.
• Regional Trends: Generally, states in the Mountain and Central regions of the country have lower electricity costs, while those in New England and the Pacific region tend to have higher rates. These variations could be tied to the local availability of cheap energy resources and differences in energy regulations and policies.
• Higher Costs in Smaller States: Interestingly, smaller states seem to face higher electricity costs, with Rhode Island, Connecticut, and New Hampshire rounding out the top five most expensive states for electricity. A possible explanation is that smaller states have less space for widely available and cheap energy resources, such as wind and solar farms