What is the Average Electric Bill by State?

Wonder why your average electric bill is so high? Geography plays a surprising role. Electricity prices vary significantly state-to-state. In Hawaii, the average homeowner currently pays $223.23 a month, while in Utah they pay only $81.98. However, not every state that pays less enjoys lower rates. Some pay more but consume less. And it’s this combination of pricing and personal habits that determines the size of your bill.

What Affects Electricity Consumption?

Your choices help decide how much you pay the electric company at the end of the month. Some are obvious, but others aren’t. For instance:

• Consumption. Monitoring electricity use is one of the easiest ways to reduce your energy costs. Turn off the lights. Unplug energy vampires. Upgrade to Energy Star appliances. There are a lot of ways to lower your average electric bill. In most cases, small changes can lead to major savings.
• Time of Day. Like every other commodity, electricity responds to demand. When consumption goes up, prices go up. Electricity use generally peaks from 4-9 p.m. The fewer devices you run during this time, the less you’ll pay.
• Where You Live. Due to the cost of transmission and distribution, the average electric bill is 40 percent higher in rural areas than in urban ones. Based on your location, you may also be able to purchase electricity from one of the nation’s deregulated energy markets, which provide more competitive pricing than a single, centralized one.

What Determines the Price of Electricity?

Electricity rates are affected by a wide range of factors, including government policy and economic trends. Some are under our control, while others are entirely out of our hands, such as:

• Fuel. Whether it’s coal, diesel, propane, or natural gas, power plants need to burn fuel to generate electricity. However, fuel prices fluctuate according to production and availability. Companies might have trouble extracting resources or shipping fuel where it’s needed. Overseas crises, such as the Ukrainian War, can shake up international markets and drive up prices as well.
• Power Plant Costs. Constructing, maintaining, and operating power plants costs a lot of money, which has to be recouped through electricity sales. This means areas with newly installed plants may wind up paying a little more, at least in the short term. However, old, outdated plants are normally a bigger concern. Because they require greater upkeep, the homes they supply are normally subject to higher rates.
• Transmission Costs. Distributing electricity requires a lot of infrastructure and the cost to build, maintain, and operate it is generally passed on to the consumer.
• Weather Conditions. Extreme temperatures increase demand. Depending on where you live, prices typically rise as a result of heat waves or cold snaps. Sadly, some areas suffer from both. Weather also impacts renewable sources such as wind turbines and solar panels. Cloudy or windless days may restrict supply and cause a price spike.
• Regulations. America doesn’t have an energy policy. It has 50. Each state decides how to regulate electricity within its borders. Some allow utilities to compete against each other on the open market. Others rely on a single, centralized provider. A few allow companies that distribute energy to compete with each other, but not companies that generate it.

Average Electric Bill By State

The United States Energy Information Administration (EIA) tracks electricity prices across the country. According to their latest report, released in April 2022, here are the electricity rates for each state and how much they pay each month, on average.

 state and how much they pay each month, on average.

How to Reduce Your Average Electric Bill

Agway provides electricity at competitive rates. Our reliable and distributed grid delivers power at the lowest possible price, so you can switch on any device at any time and know you’re getting the biggest savings on the market.

These savings extend to your electric lines as well. Our EnergyGuard^TM program protects your home’s essential systems, including the furnace, air conditioning, and wiring. When something goes wrong, we cover parts and labor. You pay no deductible or service fee. Sign up today and discover a better way of improving your energy costs and financial security.