Cheapest States for Electricity
States with the lowest residential electricity rates in the United States
Why These States Have Low Electricity Rates
Key Factors
- •Abundant natural resources (hydroelectric, natural gas, coal)
- •Lower population density reducing transmission costs
- •Strong state-level energy policies and regulations
- •Efficient utility operations and infrastructure
Energy Sources
State Rankings
| Rank | State | Avg Rate | Monthly Bill | Usage | Market | Renewable % |
|---|---|---|---|---|---|---|
1 | Idaho ID | 8.89¢ per kWh | $94.12 residential avg | 1,059 kWh/month | Regulated | 78.2% |
2 | Louisiana LA | 9.12¢ per kWh | $121.45 residential avg | 1,332 kWh/month | Regulated | 7.1% |
3 | Washington WA | 9.43¢ per kWh | $103.87 residential avg | 1,102 kWh/month | Regulated | 89.1% |
4 | Utah UT | 9.82¢ per kWh | $84.23 residential avg | 858 kWh/month | Regulated | 23.4% |
5 | Arkansas AR | 10.01¢ per kWh | $118.67 residential avg | 1,185 kWh/month | Regulated | 18.9% |
6 | North Dakota ND | 10.24¢ per kWh | $119.34 residential avg | 1,166 kWh/month | Regulated | 31.2% |
7 | Wyoming WY | 10.56¢ per kWh | $95.78 residential avg | 907 kWh/month | Regulated | 17.8% |
8 | Nebraska NE | 10.67¢ per kWh | $108.23 residential avg | 1,014 kWh/month | Regulated | 28.7% |
9 | West Virginia WV | 10.89¢ per kWh | $124.56 residential avg | 1,144 kWh/month | Regulated | 5.2% |
10 | Kentucky KY | 10.98¢ per kWh | $128.74 residential avg | 1,172 kWh/month | Regulated | 8.9% |
Geographic Patterns
Pacific Northwest
Idaho and Washington benefit from abundant hydroelectric resources, providing clean, low-cost electricity generation.
Mountain West
Utah and Wyoming have access to coal and natural gas resources, plus lower population densities that reduce transmission costs.
Southeast & South
Louisiana and Arkansas benefit from natural gas production and competitive wholesale electricity markets.
Key Takeaways
Natural Resources Matter
States with abundant hydro, coal, or natural gas tend to have lower rates.
Regulation vs. Competition
All top 10 cheapest states have regulated utility markets.
Population Density
Rural states often have lower rates due to reduced transmission complexity.
Renewable Energy
Hydro-heavy states (ID, WA) achieve low rates with high renewable percentages.