Energy guide
Comparing utility costs across states
Compare annual statewide residential benchmarks without mistaking them for a current utility offer or a causal explanation.
Annual residential electricity-rate benchmarks span a 3.4× range across states
In the U.S. Energy Information Administration's 2025 annual-frequency retail-sales series, residential average revenue per kWh ranges from 11.81¢ in North Dakota to 40.59¢ in Hawaii. At a hypothetical 900 kWh/month, that rate-only difference is roughly $3,100 per year before a utility's tariff terms and actual usage. It is not a moving-cost forecast or a local bill quote.
What the comparison measures
US annual statewide residential averages span 3.4×, from 11.8¢/kWh to 40.6¢/kWh; the dataset does not determine why.
- 11.81¢
- cheapest, North Dakota
- 40.59¢
- priciest, Hawaii
- 3.4×
- cheapest-to-priciest gap
- ~$3,100
- yearly gap @900 kWh/mo
Source: EIA retail-sales API, 2025 annual-frequency residential averages, all 50 states + DC.
The 6 cheapest states for residential electricity (2025)
Average residential price, cents per kWh.
- North Dakota
North Dakota
12
- Idaho
Idaho
12
- Nebraska
Nebraska
12
- Louisiana
Louisiana
13
- Arkansas
Arkansas
13
- Montana
Montana
13
What this shows These are the six lowest annual statewide residential averages in the stored 2025 EIA period, below the 17.30¢ national average. The ranking is descriptive rather than a causal analysis.
What the State Benchmark Measures
RateWatt's ranking uses the EIA retail-sales API's annual-frequency statewide residential average revenue per kWh. It is useful for a broad same-period comparison and is not an individual utility tariff.
It cannot identify the cause of a state's result. Fuel mix, utility costs, regulation, transmission, weather, customer mix, taxes, tariffs, and measurement timing are not isolated by this comparison. RateWatt does not use the ranking to attribute a rate to any of those factors.
Read the Ranking Carefully
Rankings are annual and statewide. They do not show a universal regional tariff, predict the next rate filing, or prove that every household in a listed state pays more or less than one elsewhere.
For a real decision, use the ranking as context and then compare the exact utility territory, current tariff, fixed charges, taxes, billing period, and expected kWh usage.
How to Use Rate Comparisons
RateWatt's EIA data can provide a same-year benchmark when used with its limits:
- Budget context: Multiply a state average by a clearly stated hypothetical usage, then add that it excludes the customer's actual fixed charges, taxes, plan terms, and consumption.
- Relocation research: Pair the annual benchmark with a prospective utility's current tariff and an expected household load; do not treat the statewide average as a savings forecast.
- Sector comparison: Compare the same EIA year and customer sector when assessing broad commercial or residential context.
- Trend monitoring: RateWatt's historical trends show the stored annual series, not a forecast of future utility prices.
What Rate Comparisons Cannot Tell You
State average rates have important limitations:
- Your actual rate may differ significantly. Averages include all utilities in a state. If you are served by a municipal utility or co-op, your rate may be 20-30% lower than the statewide average. If you are served by the state's most expensive investor-owned utility, your rate may be above average.
- Total energy cost matters more than rate. A state with a high rate but mild climate (California coast) may result in lower annual electricity bills than a state with a low rate but extreme temperatures (Arizona in summer, Minnesota in winter if using electric heat).
- Rates change. The annual series can change from year to year. Use a current utility tariff or regulator filing for a current or forward-looking decision.
Frequently Asked Questions
What is the cheapest state for electricity?
The ranking shows the lowest annual statewide residential average in the selected EIA year. It is not a live utility quote and does not establish why the state is lowest.
What is the most expensive state for electricity?
The ranking shows the highest annual statewide residential average in the selected EIA year. A statewide annual average is not the bill or tariff for every customer in that state.
Why are rates different between neighboring states?
The annual EIA rate data describes the difference but cannot attribute it to a particular cause. A current explanation requires utility tariffs, regulator records, and local operating context.
Do electricity rates correlate with policy?
This guide does not infer a policy effect from annual state averages. Correlation or a shared state boundary would not show that policy caused a retail rate.
How much would I save by moving?
Use a statewide average only as a rough same-usage benchmark. Your actual cost depends on the destination utility, plan, climate, appliances, fixed charges, taxes, and your own consumption.
Are commercial rates always lower than residential rates?
Compare the EIA customer sector and year directly. Sector averages describe revenue per kWh for that class; they do not guarantee the price available to a particular customer.
Sources
- U.S. EIA retail-sales API, annual-frequency state and sector observations.
- U.S. EIA, average retail electricity price method and interpretation.
This content is for informational purposes only and does not constitute financial advice. Rates change frequently. Contact your utility provider for current rates specific to your account and location.
How to use RateWatt with the source boundary intact
Start with how electricity rates are built to understand the difference between a statewide annual benchmark and a utility tariff, then use state-level rate data to compare stored annual averages. The rate-structure guide explains common tariff structures. For state-by-state comparison, the cheapest-states guide and annual-rate guide report where statewide averages sit without assigning a cause. The renewable cost comparison covers industry LCOE estimates separately from RateWatt's EIA-backed data. Neither a generation mix nor an annual statewide average is an individual utility quote.
Compare before you commit
The state you live in moves the bill more than any plan choice.
- See every state ranked from cheapest to most expensive. Rankings
- Look up your state’s exact residential, commercial, and industrial rates. All state rates
- Estimate your own monthly bill from your kWh usage. Cost calculator
Rates are EIA state averages, your utility, plan, and usage set your actual bill.
The live rate figures on this page are pulled directly from the EIA database. Broader context and explanatory figures in the guide text come from public EIA and industry reporting, not necessarily this portal's live database. See our editorial standards & corrections policy, the methodology behind these numbers, or report a data error. Data current as of 2025.