Written by Jason Thomas | Last updated March 31, 2023
As we all know, the cost of electricity can fluctuate dramatically depending on where you live.
But what’s the average price per kilowatt hour across the country? Pacific Non-Contiguous states saw an average increase of nearly 24.18%, while those in the West North Central states saw a jump of 6.23%.
So, where does your state rank? Keep reading to find out!
Key Takeaways
- Between January 2022 and 2023, some states saw a huge jump in average electricity rates, including Maine, Hawaii, Oklahoma, and Illinois, among others.
- Other states, like Michigan, South Dakota, Alaska, and Idaho, saw mild increases.
- Only Wyoming decreased its rates.
Average Electricity Rate by State
| Census Division and State | January 2023 | January 2022 | Difference | Difference % |
|---|---|---|---|---|
| New England | 29.74 | 22.86 | 6.88 | 30.10% |
| Connecticut | 30.24 | 22.29 | 7.95 | 35.67% |
| Maine | 24.12 | 18.33 | 5.79 | 31.59% |
| Massachusetts | 31.71 | 25.36 | 6.35 | 25.04% |
| New Hampshire | 31.72 | 21.27 | 10.45 | 49.13% |
| Rhode Island | 28.96 | 23.56 | 5.40 | 22.92% |
| Vermont | 19.95 | 19.34 | 0.61 | 3.15% |
| Middle Atlantic | 19.86 | 16.97 | 2.89 | 17.03% |
| New Jersey | 16.92 | 16.33 | 0.59 | 3.61% |
| New York | 23.57 | 21.02 | 2.55 | 12.13% |
| Pennsylvania | 17.99 | 14.18 | 3.81 | 26.87% |
| East North Central | 15.77 | 13.91 | 1.86 | 13.37% |
| Illinois | 16.04 | 13.12 | 2.92 | 22.26% |
| Indiana | 15.43 | 13.41 | 2.02 | 15.06% |
| Michigan | 17.99 | 17.11 | 0.88 | 5.14% |
| Ohio | 14.31 | 12.53 | 1.78 | 14.21% |
| Wisconsin | 16.05 | 14.81 | 1.24 | 8.37% |
| West North Central | 11.40 | 10.98 | 0.42 | 3.83% |
| Iowa | 11.30 | 10.97 | 0.33 | 3.01% |
| Kansas | 12.97 | 12.52 | 0.45 | 3.59% |
| Minnesota | 13.08 | 12.71 | 0.37 | 2.91% |
| Missouri | 10.73 | 10.06 | 0.67 | 6.66% |
| Nebraska | 9.35 | 9.43 | -0.08 | -0.85% |
| North Dakota | 9.91 | 9.44 | 0.47 | 4.98% |
| South Dakota | 11.25 | 11.03 | 0.22 | 1.99% |
| South Atlantic | 14.04 | 12.33 | 1.71 | 13.87% |
| Delaware | 14.18 | 12.24 | 1.94 | 15.85% |
| District of Columbia | 14.91 | 13.23 | 1.68 | 12.70% |
| Florida | 15.01 | 13.36 | 1.65 | 12.35% |
| Georgia | 12.87 | 11.63 | 1.24 | 10.66% |
| Maryland | 15.87 | 13.41 | 2.46 | 18.34% |
| North Carolina | 12.67 | 10.88 | 1.79 | 16.45% |
| South Carolina | 13.99 | 12.73 | 1.26 | 9.90% |
| Virginia | 14.03 | 12.10 | 1.93 | 15.95% |
| West Virginia | 13.09 | 11.95 | 1.14 | 9.54% |
| East South Central | 12.97 | 11.97 | 1.00 | 8.35% |
| Alabama | 14.36 | 12.86 | 1.50 | 11.66% |
| Kentucky | 12.68 | 11.93 | 0.75 | 6.29% |
| Mississippi | 13.18 | 11.48 | 1.70 | 14.81% |
| Tennessee | 12.11 | 11.50 | 0.61 | 5.30% |
| West South Central | 13.27 | 11.72 | 1.55 | 13.23% |
| Arkansas | 11.42 | 10.33 | 1.09 | 10.55% |
| Louisiana | 11.94 | 11.20 | 0.74 | 6.61% |
| Oklahoma | 10.96 | 10.16 | 0.80 | 7.87% |
| Texas | 14.18 | 12.28 | 1.90 | 15.47% |
| Mountain | 12.78 | 12.00 | 0.78 | 6.50% |
| Arizona | 12.62 | 12.37 | 0.25 | 2.02% |
| Colorado | 14.20 | 13.59 | 0.61 | 4.49% |
| Idaho | 10.58 | 9.90 | 0.68 | 6.87% |
| Montana | 10.73 | 10.67 | 0.06 | 0.56% |
| Nevada | 16.81 | 12.94 | 3.87 | 29.91% |
| New Mexico | 13.53 | 13.11 | 0.42 | 3.20% |
| Utah | 10.66 | 10.27 | 0.39 | 3.80% |
| Wyoming | 10.28 | 10.28 | 0.00 | 0.00% |
| Pacific Contiguous | 19.47 | 17.55 | 1.92 | 10.94% |
| California | 26.45 | 23.60 | 2.85 | 12.08% |
| Oregon | 12.04 | 10.86 | 1.18 | 10.87% |
| Washington | 10.48 | 9.92 | 0.56 | 5.65% |
| Pacific Noncontiguous | 33.48 | 30.10 | 3.38 | 11.23% |
| Alaska | 21.90 | 22.09 | -0.19 | -0.86% |
| Hawaii | 44.96 | 37.61 | 7.35 | 19.54% |
| U.S. Total | 15.47 | 13.72 | 1.75 | 12.76% |
Average Price of Electricity to Residential Customers by State (including DC), January 2023 and 2022 (Cents per Kilowatt-hour). Organized by biggest difference percentage (largest increase to largest decrease).
10 States With the Biggest Increases in Rates
Vault Electricity compiled data reflecting the average electricity rate by state, comparing information from January 2022 to that in December 2023. Below are the findings.
| State | January 2023 | January 2022 | Difference | Difference % |
|---|---|---|---|---|
| New England | 29.74 | 22.86 | 6.88 | 30.10% |
| Connecticut | 30.24 | 22.29 | 7.95 | 35.67% |
| Maine | 24.12 | 18.33 | 5.79 | 31.59% |
| Massachusetts | 31.71 | 25.36 | 6.35 | 25.04% |
| New Hampshire | 31.72 | 21.27 | 10.45 | 49.13% |
| Rhode Island | 28.96 | 23.56 | 5.40 | 22.92% |
| Pennsylvania | 17.99 | 14.18 | 3.81 | 26.87% |
| Illinois | 16.04 | 13.12 | 2.92 | 22.26% |
| Maryland | 15.87 | 13.41 | 2.46 | 18.34% |
| Nevada | 16.81 | 12.94 | 3.87 | 29.91% |
What’s behind the increase? Mostly supply and demand. Business and leisure travel has resumed, and manufacturing has returned, so demand is up. But supplies have remained constrained due to several factors (including the war in Ukraine and supply chain issues caused and exacerbated by the COVID-19 pandemic).
Why are some states higher than others? Electricity prices vary depending on the availability of fuels and power plants, as well as pricing regulations and local fuel costs. States with fewer renewable energy systems in place tend to see higher electricity costs overall compared to those without many.
10 States With the Lowest Increases in Rates
Wyoming managed to get by with a decrease in rates while everyone else saw at least some increase in rates, even if only mild. Here’s what the research shows.
| State | January 2023 | January 2022 | Difference | Difference % |
|---|---|---|---|---|
| Vermont | 19.95 | 19.34 | 0.61 | 3.15% |
| Iowa | 11.30 | 10.97 | 0.33 | 3.01% |
| Minnesota | 13.08 | 12.71 | 0.37 | 2.91% |
| Nebraska | 9.35 | 9.43 | -0.08 | -0.85% |
| South Dakota | 11.25 | 11.03 | 0.22 | 1.99% |
| Arizona | 12.62 | 12.37 | 0.25 | 2.02% |
| Montana | 10.73 | 10.67 | 0.06 | 0.56% |
| New Mexico | 13.53 | 13.11 | 0.42 | 3.20% |
| Wyoming | 10.28 | 10.28 | 0.00 | 0.00% |
| Alaska | 21.90 | 22.09 | -0.19 | -0.86% |
What to Expect from Rates Moving Forward
U.S. electricity customers are facing some of the largest bills in years because of volatile natural-gas prices, which are driven higher by winter demand and a global supply shortage made worse by Russia’s war against Ukraine. The natural-gas supply crunch has already made it substantially more expensive for utilities to purchase or produce electricity.
Some electricity providers have stopped taking on new customers entirely, while others have started playing around with the idea of actually paying customers to bring their business elsewhere.
We’re all feeling the effects of climate change, from more extreme weather to higher electricity prices. And it’s only going to get worse in the coming years.
The Energy Information Agency predicts that electricity prices will continue to rise in the short-term and long-term as the demand for power increases. This means that we’ll all have to start paying more attention to our energy usage and find ways to conserve power.
One way to do this is to invest in energy-efficient appliances and light bulbs. Another is to make sure your home is well insulated and to consider outfitting your home with energy-saving devices or even switching to alternative energy sources (such as solar power). Many states, like New York, now have buy-in programs that make this a relatively seamless and inexpensive switch.
By making a few simple changes, we can all help to reduce our electricity bills and do our part to slow down climate change.
Methodology for Identifying the Average Price of Electricity to Residential Customers by State
To find the average electricity price and then maintain the list over time, Vault Electricity’s editors regularly analyze U.S. Energy Information Administration electricity data to determine the latest prices by state. We monitor the eia.gov website weekly for this purpose.
In addition to identifying the average electricity rates overall, Vault Electricity’s editors help Texans get the most up-to-date and cheapest electricity rates in Texas.
About the author: Jason Thomas is a native Texan, and Co-Founder and Partner at Vault Energy Solutions, a Texas electricity brokerage firm. Vault Energy Solutions was founded in 2009 with a mission to help homeowners and businesses find the best deal on electricity. Read more | Email Jason
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