2020 Electricity Rates By State (Updated Nov 2020)

2020 Electricity Rates By State (Updated Nov 2020)

For residents and businesses alike, the cost of electricity is a regular expense that is incurred each and every month. Based on factors such as demand and available plans, the amount that is paid can vary from state to state. As a result, some areas are subject to higher costs than others, a fact that can play a role in where people settle down or how conscious they are of their energy usage. It can also affect statewide averages as higher rates can be a contributing factor to overall electricity consumption. These figures are published typically as rankings and allow for cost comparisons to be made.

While some state electricity ranking sources may use their own calculations to publish updates on rates, the federal government also takes matters into its own hands, publishing compiled cost information online through the U.S. Energy Information Administration(EIA). The information below is based on the most current electricity rate figures and includes the cost of electricity in each state as well as the District of Columbia.

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Residential Electricity Rates by State

(cents per kWh for the latest month available)

The residential electricity rates listed below are noted in terms of cents per kilowatt-hour (kWh), a measurement that indicates the amount of energy used that is equal to consuming 1000 watts for an hour. On average in the 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 in the table are those that each state incurred during the previous year and the percent increase and decrease of the rate change. Included also is the dollar breakdown for the cost of energy that individuals end up paying. Understandably the highest rates lead to the greatest electric costs but the degree that prices rise and drop vary from state to state.

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 the more isolated or highly populated areas of the country. The summer and winter months may see the rates of these states rise within certain portions of the country based on geographical location, although in order to cause major shifts within the top ten it may take 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 to be is within the bottom of the rates list, where the monthly costs typically remain below the national average. Aside from geography, there are other factors that can play a role in the overall cost of electricity statewide as some areas are within deregulated markets, which increases overall competition and brings out a greater variety of money saving plans. Free nights and weekends, green energy, and even prepaid electricity are offerings residents can choose from to minimize their monthly electricity expenses.

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. There still remain some trends even with these movements, as often it is the most remote or densely populated areas that remain within the more expensive portion of the list. This can change however as the effects of seasonality cam play a part in how much is paid each month.

This is most typically a result of weather conditions, as areas that experience 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 the heating and cooling capabilities, which presents the greatest energy cost for homes nationwide. As an additional effect of these movements, statewide rate adjustments also affect national averages, which can be particularly sensitive to the swings that often occur. In getting a better sense for national numbers and trends, it is therefore important to breakdown individual rates and understand some of the lurking variables that can contribute to overall trends.

Ultimately, there is quite a lot that goes into the energy cost incurred nationwide each month. And whether you reside in a state with cheaper electricity rates or not, it is always helpful to know what could be driving up your monthly expenses and how you stack up against the rest of the country. In time, you may come to appreciate the newfound perspective you attain.

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