Not every U.S. state gives residents the freedom to choose their electricity provider. In deregulated states, competition among providers allows consumers to shop for the best rates and plans for their specific needs.
Georgia
Virginia
Connecticut
Rhode Island
California
Washington, DC
Delaware
Illinois
Maine
Massachusetts
Michigan
Pennsylvania
New York
Ohio
New Jersey
New Hampshire
Electricity rates aren’t universal. The cost you pay per kilowatt-hour (kWh) can vary significantly depending on your location. In deregulated states, competition among providers can lead to better rates, but it can also result in confusion if you’re not sure what to look for. Factors like demand, energy generation mix, regional utility fees, and seasonal trends all contribute to these rate differences.
To make comparison easier, the Power Wizard experts have created a table of electricity rates by state. For the most accurate and up-to-date rates, visit your state-specific page.
All electricity plans include Transmission and Distribution Service Utility (TDSU) fees. These regulated charges cover grid maintenance and typically update a few times per year. No matter which retail electricity provider (REP) you choose, your TDSU fees will remain the same.
| State | Avg. Residential Rate (¢/kWh) | Avg. Commercial Rate (¢/kWh) | Provider Options | Typical Plan Type |
|---|---|---|---|---|
| Hawaii | 41.11 | 36.43 | Limited | Fixed, Time-of-Use |
| California | 32.41 | 23.72 | Moderate | Time-of-Use, Green Plans |
| Massachusetts | 30.19 | 23.20 | Moderate | Fixed, Green |
| Texas | 15.3 | 9.00 | Extensive | Fixed, Variable, Prepaid, Green, Time-of-Use |
| Pennsylvania | 18.43 | 12.03 | Extensive | Fixed, Green |
| Ohio | 16.12 | 11.25 | Moderate | Fixed, Variable |
| Illinois | 17.59 | 13.13 | Moderate | Fixed, Indexed |
| Florida | 15.09 | 11.88 | Regulated | Fixed |
| Georgia | 14.71 | 11.85 | Regulated | Fixed, Time-of-Use |
| North Dakota | 11.08 | 7.07 | Limited | Fixed |
Electricity prices are often lower in states with abundant natural resources, favorable energy policies, and efficient grid infrastructure. These states typically rely on locally sourced power generation, like hydroelectric, coal, or wind, which helps reduce transportation and fuel costs.
With plenty of access to lignite coal and wind energy, North Dakota boasts some of the lowest electricity rates in the United States. The state’s low population density helps reduce grid strain, which in turn keeps infrastructure costs and electricity prices down.
Idaho benefits from strong hydroelectric power generation as well as wind and natural gas resources. The state’s efficient infrastructure and relatively low demand help maintain some of the nation’s most affordable electricity rates.
Nebraska leverages its abundant local resources, including coal, natural gas, and wind energy, to keep electricity prices low. The state’s public power model reduces costs for consumers, and efficient grid management contributes to consistently low rates.
Montana’s electricity rates are kept low by a combination of hydroelectric, coal, and wind energy, with significant in-state generation capacity. The state’s natural resource abundance and relatively small population allow for efficient energy distribution and lower infrastructure costs.
Missouri rounds out the top five with a diverse energy portfolio that includes coal, nuclear, and natural gas, along with a growing share of renewables. The state’s central location and efficient transmission network help minimize delivery costs, resulting in affordable residential electricity rates.
Electricity rates are typically highest in states with remote geography, reliance on imported fuel, heavy environmental regulations, or high population density. These factors increase the cost of energy generation and delivery.
Hawaii consistently ranks as the most expensive state for electricity due to its geographic isolation and dependence on imported oil for power generation. Despite significant investments in renewable energy, high infrastructure and fuel transport costs keep electricity prices elevated.
Connecticut’s high electricity prices are driven by limited local generation, reliance on imported energy, and stringent environmental regulations. The state’s dense population and aging infrastructure further increase costs.
California’s electricity rates are influenced by ambitious renewable energy goals, wildfire mitigation costs, and the complexity of its transmission infrastructure. The state’s large population, environmental regulations, and reliance on imported energy during peak times all contribute to elevated costs.
Rhode Island faces high electricity costs due to its small size, limited local generation capacity, and reliance on imported natural gas. The state’s dense population and the need for infrastructure upgrades to accommodate renewable energy integration also drive up prices.
Massachusetts experiences high electricity demand, especially during cold winters, and relies heavily on imported energy. The state’s limited local generation, combined with high transmission and distribution costs, results in elevated rates. Ambitious clean energy policies and ongoing grid modernization efforts further contribute to Massachusetts’ high residential electricity prices.
Electricity rates vary by state due to a mix of market structure, infrastructure, geography, and demand. The Power Wizard energy experts have broken down cost factors for you below:
While deregulation introduces choice, it doesn’t guarantee cheaper rates. Consumers can save by comparing plans that fit their energy usage patterns. Power Wizard simplifies this process by using advanced tools and expert insights to help you find the best electricity rates and plans all in one place.
Short-term plans with low starter rates often expire during high-demand seasons, like summer. This can force you to renew at peak prices. Always check the contract end date before signing up.
With Power Wizard’s smart comparison tool, you can view real-time electricity rates in your area and find the best fit for your home or business. Enter your ZIP code now to kickstart your search!
Energy deregulation means you get to choose your electricity provider instead of being locked into a single utility company. In deregulated markets like Texas, retail electric providers (REPs) compete for your business, giving you more options and potentially better rates.
Electricity rates vary across the country because every state has a different mix of fuel sources, infrastructure, policies, weather, and demand. A state that produces its own energy from low-cost sources may have lower rates than one that relies on imports or green energy mandates. Local regulations and whether a state is deregulated also play a big role in what you pay.
The easiest way to find the best electricity rate? Use Power Wizard’s comparison tool! Just enter your ZIP code and view the electricity plans, providers, and rates available in your area in seconds. You can even enroll in a plan right from our website, so you don’t need to jump between REP portals.
The cost of electricity depends on where you live, the amount of energy you use, and the type of plan you’re on. Rates can range from just a few cents per kilowatt-hour to over 30 cents in some areas. Using Power Wizard’s comparison tool can help you find an electricity plan that fits your needs and budget.
A fixed rate stays the same each month, making it easier to budget. A variable price changes based on the market and can jump up when demand is high. An indexed rate is tied to a specific market formula, which means your bill can change based on outside factors. The best plan type depends on your energy needs, lifestyle, and wants.
Generally, the best time to lock in a new plan is during the spring or fall when energy demand is lower and rates are more competitive. Shopping during extreme heat or cold can lead to higher prices.
