Why electricity prices differ so much between states
How the power is made. States with lots of hydropower, such as Washington and Idaho, or with cheap local coal and natural gas, such as Louisiana and Wyoming, have the lowest prices. Hawaii burns imported oil on small island grids, which is why it pays the most.
The cost of the grid. Every bill pays for poles, wires, substations and storm repairs. Dense cities with underground lines, places hit by hurricanes and wildfire-prone states such as California spend more to deliver each kWh.
Regional markets. Much of the Northeast and Mid-Atlantic buys power through regional markets where natural gas sets the price most hours. When gas or capacity prices jump, bills follow within months. In 2025 and 2026, higher capacity costs in the PJM market raised supply prices from New Jersey to Illinois.
Regulation and choice. In about a dozen states, including Texas, Ohio and Pennsylvania, many homes can choose their electricity supplier, so what you pay depends heavily on the plan you pick. Elsewhere, a state commission approves one set of rates for each utility.
Price is only half the bill. A cheap state can still have high bills if homes use a lot of power. See the average electric bill by state, or check your own bill against your state’s average.
About this data
Prices are average revenue per kWh from sales to residential customers, reported by utilities to the U.S. Energy Information Administration (EIA) in its Electric Power Monthly (tables 5.6.A and 5.6.B). They include energy, delivery, taxes and fees. Your own utility’s rate may be higher or lower than the state average. We update this page when the EIA publishes new data; last update: October 18, 2026.
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Source: KiloBill analysis of U.S. Energy Information Administration data, January–July 2026. https://kilobill.com/electricity-rates-by-state/