Electricity price statistics 2024

Residential electricity price by state

Based on the latest numbers released by the U.S. Energy Information Administration, the national average cost of residential electricity in September 2023 was 16.94 cents per kilowatt-hour (¢/kWh).

Costs vary widely by state, however, with prices as low as 11.38 ¢/kWh in Washington state and as high as 41.52 ¢/kWh in Hawaii.

Ten states experienced an annual increase in the price of electricity of over 10% from September 2022 to September 2023:

• Nevada: +23.02%
• Maryland: +16.56%
• Maine: +15.93%
• California: +15.52%
• Montana: +12.65%
• Delaware: +11.64%
• North Carolina: +11.47%
• Oregon: +11.46%
• Idaho: +10.79%
• Rhode Island: +10.46%

Nevada experienced the largest increase in residential electricity prices. Legislation from previous years is one major contributor to this increase. Additionally, as more corporate and institutional customers switch from NV Energy — a public utility company that provides electricity in northern and southern Nevada — to alternative energy suppliers, the remaining customer base is left to bear a larger share of the utility's financial burdens.

On the other hand, three states saw an annual decrease in the price of electricity of over 10% in the same period:

• New Hampshire: -27.74%
• Louisiana: -20.13%
• Illinois: -12.02%

In the case of New Hampshire, the drop is attributable to a decrease in the price of natural gas in 2023 and the state’s competitive energy market.

States with the highest and lowest energy prices

Based on September 2023 data, residential electricity is the most expensive in the following states:

1. Hawaii: 41.52 ¢/kWh
2. California: 29.99 ¢/kWh
3. Connecticut: 29.25 ¢/kWh
4. Massachusetts: 28 ¢/kWh
5. Rhode Island: 26.94 ¢/kWh
6. Maine: 26.86 ¢/kWh
7. Alaska: 24.5 ¢/kWh
8. New Hampshire: 23.31 ¢/kWh
9. New York: 23.23 ¢/kWh
10. Vermont: 21.21 ¢/kWh

The ten states with the lowest residential electricity rates in the same period were:

1. Washington: 11.38 ¢/kWh
2. Louisiana: 11.39 ¢/kWh
3. Idaho: 11.6 ¢/kWh
4. Tennessee: 11.85 ¢/kWh
5. Utah: 11.85 ¢/kWh
6. Nebraska: 12.39 ¢/kWh
7. Kentucky: 12.43 ¢/kWh
8. Wyoming: 12.64 ¢/kWh
9. Arkansas: 12.67 ¢/kWh
10. North Dakota: 12.77 ¢/kWh

Residential electricity prices over time

In the last nine years, the price of residential electricity in the U.S. has increased by 2.46% per year on average. The year 2022 saw the largest annual rise in electricity prices during that period, registering an increase of 10.1%. The substantial rise in the price of electricity that year was primarily due to the increasing costs of natural gas, which accounts for almost 40% of the country's power generation. The February 2022 invasion of Ukraine by Russia led to a surge in U.S. natural gas prices, as it increased European demand for U.S. liquefied natural gas.

U.S. natural gas production simultaneously decreased in the first months of 2022, primarily due to low winter temperatures that caused production freeze-offs. This decreased production, together with a spike in weather-related demand and substantial withdrawals from natural gas storage, further contributed to the increase in natural gas prices.

Commercial and industrial electricity prices over time

Electricity prices tend to be relatively high for residential and commercial users due to the higher costs associated with their electricity’s distribution.

In contrast, industrial consumers benefit from a more efficient and cost-effective power supply since they can receive electricity at higher voltages and in larger quantities. Consequently, the retail price for industrial customers is often similar to the wholesale price of electricity.

Power outages by state

The growing occurrences of heat waves and deep freezes are expected to boost demand for electricity, potentially leading to more frequent blackouts. It is estimated that in the period from 2000 to 2021, weather-related events were responsible for approximately 83% of all major power outages in the U.S.

In its 2021 report, the American Society of Civil Engineers (ASCE) evaluated the electrical infrastructure in the U.S. as being in fair or good condition but in need of attention, as various elements of the system exhibit significant deficiencies in both condition and functionality, heightening its susceptibility to risks.

The ASCE estimated that over $2.5 trillion is needed to restore the nation's electrical infrastructure to an acceptable state. This problem is amplified by the increasing frequency and intensity of extreme weather events driven by climate change, which exert additional strain on the already burdened and aging electrical systems.

States with the most and least power outages

Alaska, Maine, West Virginia, Virginia, Vermont and North Carolina are among the states that experienced both the highest number of power outages and the longest downtimes in 2022.

States with the most and least downtime due to power outages

Virigina, Florida, West Virginia, Maine and Vermont are among the states that experienced the longest downtimes in 2022.

Whereas, Nebraska, Delaware, Rhode Island, New Jersey and Illinois are among the states that experienced the shortest downtimes in 2022.

* “Outages” are electric interruptions lasting longer than five minutes. Data was collected from utilities that reported grid reliability metrics under the standards developed by the Institute of Electrical and Electronics Engineers.

References

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