Key takeaways:
California’s wildfires are burning at five times the usual rate, having scorched 220,000 acres and counting; Las Vegas has broken its all-time heat record reaching a sweltering 120°F; and cities in Utah have gone months without a drop of rain. Sweltering under the relentlessly hot sun, the United States is on track for its warmest summer on record.
But it isn’t just people suffering — the energy grid is feeling the heat too. With the worst of summer yet to come for many parts of the country, people will be turning their air conditioners to full blast over the next month. Demand rises, which means during summer peak hours, electricity is in high demand and comes at a premium cost.
With the average electricity bill in summer forecast to rise by more than 65%, PowerSetter analyzed which states are likely to be hit the hardest, taking into account income and living costs. For those looking to escape the boiling heat (and surging summer electric rates), these are the best and worst states for you:
Burning through savings: The US states with the highest utility bills in summer
With an average monthly salary of $5,118, Hawaii might offer wages above the national average — but that extra income goes on energy bills. Living in paradise comes at a high cost due to the island state’s reliance on electricity derived from oil, which has to be imported from the mainland. It doesn’t help that Hawaii is the hottest state, averaging temperatures of 77°F year-round, meaning its air conditioners rarely get a break. That, combined with its high housing costs, makes Hawaii the only US state where a typical wage can’t cover the average person’s basic expenses.
Oregonians aren’t much better off. Despite ranking low for year-round and summer utility costs, the state’s housing shortages and high taxes mean that the average household has just $169 left over at the end of the month.
However, while Hawaii and Oregon rank worst for utility affordability, they aren’t the states with the highest energy bills. That title is shared by Arkansas, Louisiana, Oklahoma, and Texas, where southern heat waves cause monthly utility bills to rise to $858. Particularly for those in Arkansas and Louisiana, the summer heat pushes their financial situation to boiling point. A combination of low wages, high taxes, and expensive living costs leaves the average person with less than $400 to spare.
With Mississippi and Arkansas ranking worst for average wages, at $45,180 and $48,570 respectively, these are the states where residents spend the highest percentage of their salaries on utilities. With high average temperatures and a costly overreliance on coal-derived energy, Arkansas must fork out close to a quarter of their wages on utility bills during the warm summer months. Likewise, Mississippians pay a high price too, spending 23% of their summer wages on bills.
A cool cost of living: The US states with favorable consumer energy summer rates
If you’re looking to lower your summer electricity bill, a move to Ohio could be in order. The Buckeye State ranks as the joint cheapest in the US for summer energy bills, with its relatively low tax rate and moderately cheap housing costs setting it apart. At the end of the month, after covering all of their living expenses, the average Ohioan has $1,132 left over, putting the state top of the ranking for utility cost affordability.
Ohio places just ahead of New Jersey, which ranks in the top five for average wages at $70,890. However, the state is let down by its high tax rate, housing costs, and energy bills that soar in line with the temperature, rising to $654 during the summer months — 44% above its year-round average.
However, if hot summers aren’t for you and you would much rather not have to rely on an energy-intensive air conditioner to keep comfortable, North Dakota provides a cool alternative. It offers a similarly low cost of living to Ohio, with rent setting residents back by just $831 on average, and affordable energy bills year-round, which, despite rising to $625 during the summer months, average out to just $397 year-round. While not quite as cost-effective, with the average North Dakotan having $127 less to spend each month, it might be a price worth paying to live in the coolest climate in the US outside of Alaska.
While residents in Ohio spend a relatively low 13.7% of their salary on energy, it’s beaten to the top spot by New York, where its average wage of $74,870 and moderate climate means electricity and gas costs set residents back by just 12.6%. However, with average housing costs of $3,400 — by far the highest in the country — many residents don’t see the benefits of the state’s relatively low energy costs.
Weathering the costs: How to pick a state and avoid high winter and summer electricity rates
Higher temperatures mean a higher average electric bill during summer. The highest utility bill in Texas, for instance, undoubtedly falls during the warmest months — with the state’s summer utility costs forecast to be double its annual average this year. However, temperature isn’t the only factor worth considering. While Texans face spending 19.7% of their wages on utilities, the state’s moderate wages and low tax rate take the sting off.
It’s the perfect combination of weather, wages, energy supply, and living costs that make states such as Ohio, New Jersey, and North Dakota a summer hotspot for those seeking bearable utility costs.
Methodology: To create this study, PowerSetter analyzed average salaries, forecasted summer utility costs, and expected expenses for each state. This included factors such as rent prices, tax rates, and basic living costs. Using this data, PowerSetter calculated the amount the average resident in each state has left over at the end of a month.
Sources:
Detailed findings
| State | Average SalaryPer Year | Tax Rates(Federal+State) | Average SalaryPer Month After Tax | Average Utility BillsPer Month | Average Summer UtilitiesForecast Per Month | Median Monthly Rent | Summer Utility Billsas a Percentage of Salary | Monthly cost of living(excluding rent and average bills) | Money left after payingrent and bills |
| Alabama | $50 620 | 12,76% | $3 680,07 | $452,50 | $774 | $1 461 | 21,03% | $891 | $554,07 |
| Alaska | $66 130 | 10,30% | $4 943,22 | $569,64 | $693 | $1 489 | 14,02% | $1 997 | $764,02 |
| Arizona | $58 620 | 10,91% | $4 352,05 | $460,85 | $654 | $2 195 | 15,03% | $665 | $837,56 |
| Arkansas | $48 570 | 12,46% | $3 543,18 | $404,19 | $858 | $1 235 | 24,22% | $1 109 | $341,12 |
| California | $73 220 | 15,62% | $5 148,59 | $437,92 | $693 | $3 000 | 13,46% | $993 | $462,59 |
| Colorado | $67 870 | 14,16% | $4 854,97 | $371,96 | $654 | $2 250 | 13,47% | $1 206 | $745,34 |
| Connecticut | $69 310 | 14,49% | $4 938,92 | $532,71 | $760 | $1 485 | 15,39% | $1 892 | $802,29 |
| Delaware | $62 260 | 14,20% | $4 451,59 | $435,85 | $792 | $1 610 | 17,79% | $1 653 | $396,36 |
| Florida | $55 980 | 8,64% | $4 261,94 | $458,40 | $792 | $2 575 | 18,58% | $343 | $552,34 |
| Georgia | $58 000 | 13,40% | $4 185,67 | $474,86 | $792 | $1 999 | 18,92% | $755 | $639,61 |
| Hawaii | $61 420 | 15,98% | $4 300,42 | $563,53 | $693 | $2 850 | 16,11% | $1 211 | -$453,30 |
| Idaho | $51 350 | 12,37% | $3 749,83 | $367,87 | $654 | $2 073 | 17,44% | $697 | $325,54 |
| Illinois | $63 930 | 14,66% | $4 546,49 | $412,36 | $581 | $1 650 | 12,78% | $1 387 | $928,27 |
| Indiana | $53 500 | 11,65% | $3 938,94 | $469,51 | $581 | $1 395 | 14,75% | $1 153 | $810,20 |
| Iowa | $53 520 | 13,32% | $3 865,93 | $423,88 | $625 | $1 026 | 16,17% | $1 536 | $678,89 |
| Kansas | $52 850 | 12,65% | $3 847,04 | $430,78 | $625 | $1 056 | 16,25% | $1 445 | $720,74 |
| Kentucky | $51 490 | 13,00% | $3 733,03 | $464,67 | $774 | $1 250 | 20,73% | $1 244 | $464,70 |
| Louisiana | $50 940 | 11,09% | $3 774,23 | $389,62 | $858 | $1 395 | 22,73% | $1 180 | $341,18 |
| Maine | $55 960 | 12,90% | $4 061,76 | $432,94 | $760 | $1 875 | 18,71% | $1 017 | $409,79 |
| Maryland | $69 750 | 15,20% | $4 929,00 | $449,87 | $792 | $1 844 | 16,07% | $1 726 | $567,29 |
| Massachusetts | $76 600 | 16,61% | $5 323,06 | $440,37 | $760 | $2 900 | 14,28% | $1 148 | $515,10 |
| Michigan | $58 000 | 12,64% | $4 222,40 | $413,07 | $581 | $1 335 | 13,76% | $1 345 | $961,89 |
| Minnesota | $63 640 | 14,62% | $4 527,99 | $380,76 | $625 | $1 537 | 13,80% | $1 540 | $825,58 |
| Mississippi | $45 180 | 11,25% | $3 341,44 | $412,31 | $774 | $1 410 | 23,16% | $872 | $285,08 |
| Missouri | $54 520 | 12,25% | $3 986,78 | $447,05 | $625 | $1 300 | 15,68% | $1 198 | $863,99 |
| Montana | $52 200 | 12,98% | $3 785,37 | $379,34 | $654 | $1 800 | 17,28% | $931 | $400,04 |
| Nebraska | $55 070 | 9,63% | $4 147,23 | $379,34 | $625 | $1 186 | 15,07% | $1 561 | $774,99 |
| Nevada | $55 490 | 8,61% | $4 226,03 | $376,67 | $654 | $2 150 | 15,48% | $942 | $479,53 |
| New Hampshire | $62 550 | 9,60% | $4 712,10 | $434,24 | $760 | $1 930 | 16,13% | $1 434 | $588,42 |
| New Jersey | $70 890 | 14,43% | $5 055,05 | $453,89 | $654 | $2 200 | 12,94% | $1 111 | $1 090,35 |
| New Mexico | $54 400 | 11,76% | $4 000,21 | $362,81 | $654 | $1 595 | 16,35% | $880 | $871,44 |
| New York | $74 870 | 16,60% | $5 203,47 | $433,70 | $654 | $3 400 | 12,57% | $302 | $847,91 |
| North Carolina | $56 220 | 12,51% | $4 098,91 | $400,43 | $792 | $1 850 | 19,32% | $808 | $648,84 |
| North Dakota | $55 800 | 9,49% | $4 208,72 | $396,93 | $625 | $831 | 14,85% | $1 748 | $1 005,06 |
| Ohio | $56 530 | 10,11% | $4 234,57 | $472,71 | $581 | $1 300 | 13,72% | $1 222 | $1 131,94 |
| Oklahoma | $50 940 | 12,00% | $3 735,60 | $407,69 | $858 | $1 400 | 22,97% | $1 023 | $454,79 |
| Oregon | $62 680 | 17,61% | $4 303,50 | $407,49 | $693 | $1 854 | 16,10% | $1 588 | $168,58 |
| Pennsylvania | $58 470 | 11,85% | $4 295,11 | $443,11 | $654 | $1 525 | 15,23% | $1 371 | $745,39 |
| Rhode Island | $64 530 | 12,96% | $4 680,58 | $439,65 | $760 | $2 150 | 16,24% | $1 117 | $653,48 |
| South Carolina | $50 650 | 12,20% | $3 705,89 | $453,40 | $792 | $1 775 | 21,37% | $674 | $465,13 |
| South Dakota | $49 890 | 8,23% | $3 815,34 | $408,75 | $625 | $1 025 | 16,38% | $1 638 | $527,09 |
| Tennessee | $52 820 | 8,44% | $4 030,17 | $431,48 | $774 | $1 860 | 19,21% | $604 | $792,48 |
| Texas | $57 300 | 8,72% | $4 358,62 | $423,90 | $858 | $1 886 | 19,69% | $822 | $792,69 |
| Utah | $57 360 | 13,50% | $4 134,70 | $345,62 | $654 | $2 000 | 15,82% | $1 037 | $444,15 |
| Vermont | $59 190 | 11,98% | $4 341,59 | $405,74 | $760 | $1 900 | 17,51% | $1 355 | $326,74 |
| Virginia | $65 590 | 14,77% | $4 658,53 | $430,17 | $792 | $1 997 | 17,00% | $1 162 | $707,78 |
| Washington D.C. | $72 350 | 16,09% | $5 059,07 | $401,20 | $792 | $2 195 | 15,66% | $1 340 | $732,36 |
| West Virginia | $49 170 | 12,25% | $3 595,56 | $486,11 | $792 | $899 | 22,03% | $1 520 | $384,58 |
| Wisconsin | $56 120 | 12,22% | $4 105,18 | $395,68 | $581 | $1 100 | 14,15% | $1 619 | $805,36 |
| Wyoming | $54 440 | 8,54% | $4 149,24 | $399,07 | $654 | $1 100 | 15,76% | $1 630 | $765,14 |
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