Electricity and utility rates are a considerable part of a consumer’s monthly expenses. A varity of factors determine what consumers pay for electricity. Alaska, Hawaii, and California are amongst the most expensive states for electricity. Many northern states are raising their rates – these states also tend to be cold, where consumers will end up using the heat frequently during the winter months. States like New York, Vermont, and New Jersey are all encroaching on 15 cents per kWh. Some southern and Midwestern states pay no more than 10 cents per kWh. Several states, including Louisiana, Arkansas, Mississippi, Texas, and Iowa, are the cheapest energy markets in the country, with their residents paying less than 10 cents per kWh. The map below shows what states pay more – the darker the blue, the higher the price.
The state of Nebraska’s Nebraska Energy Office website maintains a list of the energy rates across all 50 states and D.C. Click here for their list. (http://www.neo.ne.gov/statshtml/204/204_2016.htm).
Understanding Regulated vs. Deregulated Energy Markets
The U.S. is divided into regulated and deregulated markets. According to Energy Smart, (https://www.energysmart.enernoc.com/regulated-and-deregulated-energy-markets-explained) consumers in deregulated markets (such as Texas or Ohio) can not only find electricity rates and plans offered by local utilities but they can sign up to a new rate and plan, as well. Consumers in regulated markets (including Nevada and Arizona) are only allowed access to centralized electricity systems provided by and controlled by the government.
What Determines the Cost of Electricity?
Electric Choice reports (https://www.electricchoice.com/electricity-prices-by-state/) that there are several primary factors that determine how much consumers pay for electricity:
• Time of use (some utilities may charge less during off-peak hours)
• Month/season of use (summer rates may be higher than winter rates in certain areas)
• State/locale of residence (there are different prices by region, as well as for regulated vs. deregulated states)
• Amount of use (consumption)
• What the specific provider or utility charges
The full list of electricity rates by state can be seen below.
| Rank | State | Average Electricity Rate for All Sectors (Cents per Kilowatthour) |
|---|---|---|
| 1 | Louisiana | 7.46 |
| 2 | Washington | 7.68 |
| 3 | Oklahoma | 7.83 |
| 4 | Idaho | 8.08 |
| 5 | Arkansas | 8.13 |
| 6 | Wyoming | 8.19 |
| 7 | Nevada | 8.38 |
| 8 | Kentucky | 8.42 |
| 9 | Texas | 8.43 |
| 10 | Iowa | 8.55 |
| 11 | Mississippi | 8.67 |
| 12 | Utah | 8.72 |
| 13 | Oregon | 8.83 |
| 14 | Montana | 8.84 |
| 15 | North Dakota | 8.94 |
| 16 | West Virginia | 8.98 |
| 17 | Nebraska | 9.05 |
| 18 | Virginia | 9.09 |
| 19 | New Mexico | 9.12 |
| 20 | North Carolina | 9.20 |
| 21 | Indiana | 9.22 |
| 22 | Tennessee | 9.23 |
| 23 | Illinois | 9.38 |
| 24 | Alabama | 9.56 |
| 25 | Georgia | 9.59 |
| 26 | Missouri | 9.74 |
| 27 | South Carolina | 9.79 |
| 28 | South Dakota | 9.83 |
| 28 | Colorado | 9.83 |
| 29 | Ohio | 9.84 |
| 30 | Florida | 9.91 |
| 31 | Minnesota | 9.99 |
| 32 | Pennsylvania | 10.19 |
| National Average | 10.27 | |
| 33 | Arizona | 10.33 |
| 34 | Kansas | 10.49 |
| 35 | Wisconsin | 10.67 |
| 36 | Michigan | 11.05 |
| 37 | Delaware | 11.09 |
| 38 | District of Columbia | 11.73 |
| 39 | Maryland | 12.21 |
| 40 | Maine | 12.80 |
| 41 | New Jersey | 13.38 |
| 42 | Vermont | 14.46 |
| 43 | New York | 14.47 |
| 44 | California | 15.23 |
| 45 | New Hampshire | 15.66 |
| 46 | Rhode Island | 16.28 |
| 47 | Massachusetts | 16.48 |
| 48 | Connecticut | 17.24 |
| 49 | Alaska | 17.93 |
| 50 | Hawaii | 23.87 |
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