Compare electricity rates by state

A restructuring of the energy market has made it easier for you to choose your electricity supplier in more than 15 states and Washington, DC. Compare kilowatt-hour rates and energy plans to find the best fit to power your home or business.

Find the cheapest energy rates in your state

Why do electric rates vary across the US?

Energy rates reflect the overall costs of building, financing, operating and maintaining power plant facilities and the grid — the physical system that transmits and delivers power to homes and businesses — with ever-changing climate and weather conditions as mitigating factors.

Fuel costs

Fuel prices can rise during periods of high electricity demand and during service disruptions or other supply restrictions.

Power plant costs

Individual energy-producing power plants come with construction, financing, operating and maintenance costs — many of which are passed along to the customer.

State regulations

Regulations vary across the country, allowing customers to choose their provider based on their needs.

States with full regulation on energy pay electricity and natural gas prices set by the government. Twenty-four states pay regulated electricity prices:

Eighteen states offer combined regulated and deregulated prices — this could mean regulation for either electricity or natural gas:

Nine states are fully deregulated, which means independent energy providers purchase power at wholesale prices and compete for customers with market-set rates:

• District of Columbia
• Illinois
• Maryland
• Michigan
• New Jersey
• New York
• Pennsylvania
• Rhode Island
• Virginia

Transmission and distribution system

The electricity infrastructure connecting power plants to your home or business requires construction, operating and maintenance costs. These include improving cybersecurity and covering the costs of repairs after accidents or weather events. Delivery charges on your energy bill often go toward these expenses.

Weather conditions

Increases in electricity demand can coincide with weather conditions, particularly extreme heat or cold. Precipitation provides water for low-cost hydropower generation, and favorable wind speeds can help generate low-cost electricity. Droughts, low wind speeds and overall demand increases puts pressure on fuel and energy sources, resulting in higher prices.

How does weather affect energy rates?

As seasonal temperatures either soar or plummet, so will your electricity bill. Aside from the changing seasons, major weather events can have an enormous effect on energy rates based on your geographic location. The 2021 Texas energy crisis is an example of how extreme weather conditions can affect your energy demand, consumption — and, ultimately, cost.

Three severe winter storms touched down in Texas over a 17-day period in February 2021. The state saw record-breaking low temperatures, snow and ice that shut down its grid facilities and left millions without electricity. Conditions also led to food and water shortages, the deaths of more than 240 people and damage costs in the billions.

What about the energy market for businesses?

Energy rates for businesses are typically set lower than residential rates — but commercial use widely varies across businesses. While residential consumers focus on cutting energy costs to budget expenses, business owners reduce energy use in the name of maximizing profit.

A commercial business needs energy to support basic needs like heating, cooling and lighting for office buildings or retail stores. And an industrial business could require enough energy to operate multiple complex automated systems in factories or warehouses. Many large facilities like this generate their own power.

Despite lower rates, business consumers use more energy than residential customers on average. A residence uses power for cooking, climate control, lighting and small appliances. Residents can reduce their costs by using energy during non-peak hours. However, some businesses could consume energy around the clock, typically using the most during business hours — peak times when rates are usually highest.

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Written by

Melanie Huddart

Editor

Melanie Huddart is a personal finance editor and updates writer who's proofed and polished thousands of articles to help people make more informed financial decisions. She specializes in issues around accessibility and equality, as well as removing biases in managing finances for people who are unbanked or marginally banked. Melanie is an ASL-English Interpreter with experience in writing and learning assistance in college and high school classrooms, teaching English and Indigenous studies both in-person and online. She holds a BA in honors English and a Bachelor of Education from York University in Toronto. See full bio