Most Expensive States for Electricity
States with the highest residential electricity rates in the United States
32.89¢
Highest Rate (Hawaii)
$127.58
Average Monthly Bill
50%
Avg. Renewable Energy
Why These States Have High Electricity Rates
Common Factors
- •Deregulated electricity markets with price volatility
- •High infrastructure and transmission costs
- •Aggressive renewable energy mandates and programs
- •Geographic isolation or challenging terrain
- •Environmental compliance and safety requirements
Market Structure
Deregulated (7 states): MA, RI, CT, NH, ME, NY - competitive markets with supplier choice
Regulated (3 states): HI, AK, CA, VT - traditional utility monopolies
State Rankings
| Rank | State | Avg Rate | Monthly Bill | Usage | Market | Renewable % |
|---|---|---|---|---|---|---|
1 | Hawaii HI | 32.89¢ per kWh | $168.12 residential avg | 511 kWh/month | Regulated | 34.5% |
2 | Massachusetts MA | 22.67¢ per kWh | $139.84 residential avg | 617 kWh/month | Deregulated | 21.3% |
3 | Rhode Island RI | 21.34¢ per kWh | $132.45 residential avg | 621 kWh/month | Deregulated | 89.7% |
4 | Connecticut CT | 20.89¢ per kWh | $147.23 residential avg | 705 kWh/month | Deregulated | 7.8% |
5 | New Hampshire NH | 19.87¢ per kWh | $127.56 residential avg | 642 kWh/month | Deregulated | 59.2% |
6 | Alaska AK | 19.34¢ per kWh | $127.89 residential avg | 661 kWh/month | Regulated | 25.1% |
7 | California CA | 19.23¢ per kWh | $118.34 residential avg | 615 kWh/month | Regulated | 59.5% |
8 | Maine ME | 18.45¢ per kWh | $102.67 residential avg | 557 kWh/month | Deregulated | 78.9% |
9 | New York NY | 17.89¢ per kWh | $108.45 residential avg | 606 kWh/month | Deregulated | 28.1% |
10 | Vermont VT | 17.34¢ per kWh | $103.23 residential avg | 595 kWh/month | Regulated | 99.9% |
Outlier: Hawaii
Hawaii's extreme isolation makes it unique. Nearly all electricity comes from imported oil, making rates 3-4x the national average.
Key Challenge:
95% fossil fuel dependency despite aggressive renewable goals
Northeast Cluster
Six northeastern states (MA, RI, CT, NH, ME, NY) all have deregulated markets contributing to higher rates.
Market Impact:
Competition hasn't consistently lowered prices due to market complexity
Environmental Leaders
Many expensive states are leaders in renewable energy, with costs reflected in current rates.
Long-term View:
Today's investments may lead to future rate stability
Key Cost Drivers by State
Hawaii
32.89¢/kWh
- •Island isolation
- •Oil dependency
- •High infrastructure costs
Massachusetts
22.67¢/kWh
- •Deregulated market
- •Natural gas dependency
- •Environmental compliance costs
Rhode Island
21.34¢/kWh
- •Small market size
- •Transmission constraints
- •Renewable energy investments
Connecticut
20.89¢/kWh
- •Deregulated market volatility
- •Infrastructure upgrades
- •Natural gas prices
New Hampshire
19.87¢/kWh
- •Market restructuring costs
- •Transmission investments
- •Nuclear plant closures
Alaska
19.34¢/kWh
- •Remote geography
- •Diesel dependency
- •Extreme weather challenges