2023 Electricity Rates by State

For residents and businesses alike, the cost of electricity is a regular monthly expense. But rates vary from state to state, depending on supply, demand, and available plans. Geographical factors and climate also play a role. When moving and finding a place to call “home,” electricity costs can be a major consideration for families.

Some states are high energy consumers, often related to long seasons of hot or cold weather, which drives up overall electricity use averages. The U.S. Energy Information Administration (EIA) publishes annual electricity rankings, including consumption and cost per kilowatt-hour (kWh). How does Texas compare to other U.S. states? Do the energy-rich resources of the Lone Star State impact costs? What about its warm climate? Look below to see how Texas ranks on electricity rates and usage.

Residential Electricity Rates by State

(cents per kWh for the latest month available)

The residential electricity rates listed below are shown in cents per kilowatt-hour (kWh), a measurement that indicates the amount of energy used that is equal to consuming 1000 watts per hour. On average, U.S. residents consume around 897 kWh per month, which is then multiplied by the rate to determine overall electricity cost. Along with the current rates, the table also provides rates for the previous year and the percentage of increase or decrease of the rate change. Only eight states saw rate decreases from 2021 to 2022, while the rest incurred price increases - unsurprising in a year with rising prices for gas and other electricity components spike.

You can compare the average monthly cost residents are paying per state for electricity. As reflected in the numbers, higher rates per kWh often result in higher monthly costs.

Top 10 Residential Electricity Rates by State

(cents per kWh for the latest month available)

As indicated by the dark blue hues on the interactive map, the states that have the highest residential electricity rates are mainly concentrated within either the more isolated or highly populated areas of the country. Often, infrastructure costs more per resident to power less-populated areas, and the denser areas have more demand for more infrastructure. The summer and winter months may see the rates of these states rise within certain portions of the country based on geographical location; however, major shifts within the top ten could be influenced by other factors. Results for other forms of energy used by residents like natural gas and fuel costs do not always correlate with electricity rates and therefore affect states differently.

Bottom 10 Residential Electricity Rates by State

(cents per kWh for the latest month available)

The ideal place for states (and electricity consumers!) is within the bottom rankings for cost, where the monthly rates typically remain below the national average. Aside from geography, other factors that play a role in a state's electricity costs include the presence of deregulated markets like Texas, which increases overall competition and a variety of plans for consumers, like prepaid electricity, green energy, and free nights and weekends.

Variability of Electricity Rates by State

Over time, state electricity rates may be subject to changes that cause them to move up and down within rankings. Some trends remain the same, even with these movements, often with the most remote or densely populated areas as the costliest.

Other influences on cost include weather conditions, as areas with severe heat or cold are susceptible to energy-use spikes based on the methods used by residents to counteract the climate. Often that can mean tapping into a home's heating and cooling capabilities, which presents the greatest energy cost for homes nationwide. Other chart averages can be impacted by statewide rate adjustments, which can be particularly sensitive to the swings that often occur.

How Texas Compares

According to the EIA chart, Texas residents pay less on average per month for electricity ($127.19) than 24 other states and territories. While the price per kWh is 14.18 cents, also lower than other 24 states and the District of Columbia, Texas is a high energy-consumption state. The hot climate and population size play a big role in these numbers.

Energy costs are influenced by numerous factors, and knowing how your state stacks up is helpful when making decisions on where to put down roots. Payless Power, a Texas company created for Texans, offers affordable prepaid electricity plans across most of the state. Customers get reasonable rates and can save even more by controlling their energy consumption with our pay-as-you-go plans. Enter your zip code to find a plan for your household.

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