Electricity Rates Per kWh by State 2026: Complete National Comparison

The average American household pays about 16¢ per kWh for electricity — but that number masks enormous variation across states. In Louisiana, rates average under 10¢ per kWh. In Hawaii, they exceed 40¢. Even neighboring states can differ by 5¢ or more per kWh, driven by differences in fuel costs, generation mix, transmission infrastructure, and regulatory structure. This guide covers what Americans actually pay by state in 2026 and what drives those differences.

Average Residential Electricity Rates by State (2026)

The following rates represent average residential retail prices as reported by EIA data and state utility commission reports for early 2026. Actual rates vary by utility, usage tier, and whether you’re in a deregulated market with competitive suppliers or a regulated market with a single utility.

Lowest-Rate States (under 12¢/kWh)

• Louisiana — ~9.5¢/kWh. Abundant natural gas production and low transmission costs keep rates among the nation’s lowest.
• Oklahoma — ~9.8¢/kWh. Natural gas-heavy generation mix and relatively low infrastructure costs.
• Arkansas — ~10.1¢/kWh. Mix of natural gas, coal, and nuclear with low regional transmission costs.
• Idaho — ~10.3¢/kWh. Abundant hydroelectric power from the Pacific Northwest grid keeps rates low.
• Wyoming — ~10.5¢/kWh. Coal-heavy generation mix with low population density spreading infrastructure costs.
• North Dakota — ~10.7¢/kWh. Coal generation dominates; rates have edged up as coal plants face retirement pressure.
• Washington State — ~10.9¢/kWh. Heavy reliance on Pacific Northwest hydroelectric power.
• Utah — ~11.2¢/kWh. Coal and natural gas mix; renewable build-out has stabilized but not significantly reduced rates.
• Tennessee — ~11.5¢/kWh. TVA power remains competitively priced; not deregulated.
• Nebraska — ~11.7¢/kWh. Public power system (consumer-owned utilities) historically keeps rates stable and low.

Mid-Range States (12¢–16¢/kWh)

• Texas — ~12.8¢/kWh average (deregulated areas; varies by plan and REP)
• Florida — ~13.1¢/kWh (mostly regulated)
• Indiana — ~13.4¢/kWh
• Virginia — ~13.6¢/kWh (partially deregulated)
• Ohio — ~14.2¢/kWh (deregulated)
• Michigan — ~14.8¢/kWh (limited retail choice)
• Pennsylvania — ~15.1¢/kWh (deregulated; competitive suppliers available)
• Illinois — ~15.3¢/kWh (deregulated)
• North Carolina — ~13.2¢/kWh (regulated)
• Georgia — ~13.7¢/kWh (regulated)

Higher-Rate States (16¢–25¢/kWh)

• New Jersey — ~16.8¢/kWh (deregulated)
• Maryland — ~17.2¢/kWh (deregulated)
• New York — ~19.4¢/kWh (deregulated; highest concentration of high-cost areas in NYC/LI)
• Connecticut — ~22.1¢/kWh (one of the highest in the continental US)
• Massachusetts — ~23.8¢/kWh (consistently among the highest in the contiguous US)
• California — ~26.3¢/kWh (regulated; high infrastructure and renewable investment costs)
• Rhode Island — ~24.7¢/kWh (deregulated; small grid with limited generation)

Highest-Rate States

• Alaska — ~24.5¢/kWh average (varies enormously; remote communities can pay $0.50+/kWh)
• Hawaii — ~42.3¢/kWh (island grid with no mainland transmission connections; oil-fired generation historically dominant)

Why Do Electricity Rates Vary So Much by State?

Several factors drive the dramatic variation in electricity costs across the country:

Fuel Mix and Generation Costs

States with abundant cheap fuel — natural gas in Louisiana and Oklahoma, hydroelectric power in Washington and Idaho, coal in Wyoming and North Dakota — tend to have lower electricity costs. States that rely on expensive imported fuels or oil (particularly Hawaii) pay much more. The rapid decline in solar and wind costs is gradually reducing this disparity, but the effect takes years to show up in retail rates as utilities recover infrastructure investments over long depreciation schedules.

Transmission and Distribution Infrastructure

Dense urban states with aging underground infrastructure (New York, Connecticut) have higher per-unit delivery costs than states with newer overhead lines and lower customer density. These costs typically appear as a separate “delivery” or “distribution” line item on your bill but are averaged into published per-kWh figures.

Regulatory Structure (Deregulated vs. Regulated)

Contrary to what many people expect, deregulated electricity markets don’t automatically produce lower rates than regulated markets. Texas rates are lower than most deregulated Northeast states primarily due to Texas’s abundant in-state natural gas supply — not because of deregulation itself. Connecticut and Massachusetts have some of the highest rates in the country despite having competitive retail markets. Deregulation creates choice and can drive competition, but it can’t eliminate underlying generation and delivery cost fundamentals.

State Renewable Portfolio Standards and Policy Costs

States with aggressive renewable energy mandates (California, Massachusetts, New York, Connecticut) have higher rates partly because of policy costs embedded in utility rates — renewable energy credits, energy efficiency programs, low-income assistance surcharges, and stranded cost recovery from older generation assets. These aren’t “wasted” costs — they’re investments in clean energy transition — but they do raise near-term rates.

How to Get a Rate Below the State Average

If you live in a deregulated state, you have the ability to shop for electricity rates below the utility’s default “standard offer” service. In most deregulated markets, the competitive suppliers’ best available fixed-rate plans are priced below the default utility rate — sometimes significantly so.

The process: use a comparison tool (Choose Energy, Power to Choose in Texas, or your state’s official comparison site) to enter your ZIP code, see available plans, and review each plan’s Electricity Facts Label or terms of service before signing up. The switch is administratively handled between your old and new suppliers — your physical power lines and meter don’t change.

Frequently Asked Questions

What is the average electricity rate per kWh in the U.S.?

The national average residential electricity rate in early 2026 is approximately 16.1¢ per kWh, according to EIA data. This has increased from around 13.7¢ in 2022 driven by natural gas price volatility and grid infrastructure investment costs.

Which state has the cheapest electricity?

Louisiana consistently has among the cheapest electricity rates in the nation, averaging under 10¢ per kWh. Oklahoma, Arkansas, and Idaho also rank among the lowest-cost states.

Why is electricity so expensive in New England?

New England (particularly Connecticut and Massachusetts) has some of the highest electricity rates in the contiguous U.S. due to: limited pipeline capacity constraining natural gas imports, aging infrastructure with high maintenance costs, aggressive renewable energy mandates that impose near-term rate premiums, and small grid size that limits economies of scale.

Can I lower my electricity rate below the state average?

If you live in a deregulated state (TX, IL, PA, NY, NJ, OH, CT, MD, MA, ME, NH, RI, DC, and others), yes — you can shop competitive suppliers to find rates below the default utility service. In regulated states, your options are limited to reducing usage (through efficiency improvements) rather than reducing the per-kWh price itself.

Do electricity rates include delivery charges?

The “average rate per kWh” figures in this article represent total cost per kWh including both supply (the electricity generation cost) and delivery (the cost to transmit and distribute electricity to your home). On your bill, you’ll typically see these as separate line items, but the combined effective rate is what matters for total cost comparisons.