Electric Rates by State

Electricity rates vary state by state. In certain instances that difference could be quite substantial. Hawaii, for example, is by far the most expensive state when it comes to electricity. It might not feel like it when you go there for vacation, but for local residents and businesses it could be a significant financial burden. Historically, the state’s average electric cost has always been stubbornly high due to its proximity to cheap traditional power sources. The average monthly bill in Hawaii is 140% higher than national average and 40% higher than the next most expensive state.

On the flip side, states like Louisiana and Washington show the lowest electric rates at 30% cheaper than national average. If you are a heavy energy user who wishes to reduce its bills, you might wish to consider one of these two. For most of us who intend to stay where we are it might nevertheless be interesting to know what rates we are paying and if there are ways to reduce them. If you live in one of the deregulated states you might be able to reduce your electric bills by comparing available energy rates.

Which states Consume the Most Electricity?

The heaviest home electricity users live in warm states like Louisiana, Tennessee and Texas, while the lowest reside in the northern states like Vermont, Maine and Alaska. The results show that the spike in electricity occurs during summer months when AC consumption is the highest. Not surprisingly smart thermostats are used more heavily in the southern states. Even a small increase in temperature in your home could have a significant impact on your electric bill.

Across US an average household consumed 1123.22 kWh monthly for an average bill of $ $190.44.

Businesses on average consume six times more electricity then households. However, that number will depend on the industry and the season. Average business consumed 7298.96 kWh a month for a total of $ $1,027.45 monthly.

What You Need to Know About Electricity

If you live in an energy deregulated state that offers electric choice you can make certain decisions that will affect your final bill. Do you have a specific pattern when it comes to electric use? Do you own Tesla that you need to charge at night? These and many other important questions will determine whether you should select an alternative supplier, and what particular plan will be the most beneficial. Generally, there are a few key factors to consider:

Seasonality. Are you a heavy user during specific time of the year? If you consume 80% of the electricity during the summer, it might make sense to select your plan accordingly.

Time of Day. Are you using the most during the evening? You can get the plans that offer zero supply cost at night.

Day of Week. Staying away from home during the week? There are plans that offer free energy on the weekends.

The electric rates charged by your local utility company will fluctuate month-to-month, often significantly. Therefore, switching to different provider could stabilize and reduce your electric charges.

The chart below shows historical rate changes across all states. Not surprisingly, summer electric rates show uptick that coincides with increased usage.

If you live in the state that does not offer energy choice, you can still lower your electric bills by employing traditional saving methods.

Renewable Energy

Community Solar Farm

Wood Burning Energy

Wind Energy Farm

According to EIA, the share of renewable energy sources has been growing by 15% annually in the last 5 years. Thanks to the advances in technology the price of solar panels has declined, making them an ideal choice for increasing generation at the time when energy needs of the nation are growing. The cost economics of renewable energy gave jump start to various projects that gather steam and could indeed be the way into our energy future. The chart below represents growing share of alternative energy sources as compared to conventional fuels: