How Much is the Average Electric Bill in the U.S.? (Updated 2023)
Ever looked at your energy bill and wondered how much people in other states are paying for their energy usage? Electricity bills vary depending on location, energy consumption, energy generation and state-specific rates. This guide will help you understand more about what people paid for the average electric bill in the U.S. in 2023, including the highest and lowest states, along with some tips on conserving energy to help you save money.
Average Electric Monthly Bill in the U.S.
Let's start by looking at the average monthly electric bill in the United States as a whole.
According to the U.S. Energy Information Administration (EIA), the average monthly electric bill in the U.S. was $122 as of October 2022 and $143 as of May 2023. The average monthly electric bill increased by 35.1% from 2022 to 2023. However, it's important to note that this number can fluctuate based on changes in energy consumption, rates and other factors.
The average electricity price in the U.S. was about $0.14 per kilowatt-hour (kWh) as reported by the EIA in May 2022 and $0.16 in May 2023. It's worth mentioning that the national average electricity rate has seen fluctuations over time. Depending on your location, your average monthly electric bill can range from as low as $88 to as high as $205.99.
Now, let's explore the states with the highest and lowest electric bills in 2023.
8 States With Highest Electric Bill in 2023
Several states tend to top the list of highest monthly electric bills in the United States. Here are eight states that reported the highest average electric bills in 2023:
1. Hawaii — Average Electric Bill of $224
Hawaii has some of the highest electricity bills in the country due to its unique geographic location. The state heavily relies on imported oil to generate electricity, resulting in higher energy costs. Additionally, the state's isolated island grid and limited renewable energy resources contribute to higher electricity prices.
2. Connecticut — Average Electric Bill of $223
Alt Text: A night shot of Middletown, Connecticut showing buildings, a church and a baseball field.
Connecticut has some of the highest electricity rates in the nation, contributing to higher average monthly bills. The state relies heavily on natural gas and imported electricity, which can be more expensive compared to other energy sources. High population densities and the use of electric heating in winter also contribute to increased energy consumption.
3. New Hampshire — Average Electric Bill of $193.53
Firstly, the state lacks significant local fossil fuel resources, which means it must rely on importing a large portion of its energy, adding to costs. Additionally, the region's infrastructure constraints, especially limitations in natural gas pipeline capacity, can lead to higher wholesale electricity prices, particularly during peak demand in winter months. Lastly, the state's colder climate necessitates more energy consumption for heating during the winter, leading to increased demand and subsequently higher bills for consumers.
4. Massachusetts — Average Electric Bill of $173
Massachusetts' high average electric bill can be attributed to a confluence of factors. The state, being in the Northeast, does not possess abundant native energy resources, necessitating the import of much of its fuel and energy supplies. This can lead to increased costs. The state's infrastructure, particularly the constraints on natural gas pipeline capacity, can push up wholesale electricity prices, especially during cold winter months when demand surges. Additionally, Massachusetts' cold climate means residents often consume more energy for heating, contributing to increased demand and consequently, higher bills for residents.
5. Maine — Average Electric Bill of $171
Maine's high average electric bill is influenced by its geographical location and energy policies. The state's lack of local fossil fuel resources necessitates importing much of its energy, driving up costs. Additionally, infrastructure constraints, especially in natural gas pipelines, can elevate electricity prices. The cold climate further amplifies energy consumption for heating, leading to higher bills.
6. Nevada — Average Electric Bill of $167
Nevada's high average electric bill can be linked to its unique desert climate and infrastructure. The intense heat during summer months significantly boosts energy consumption due to air conditioning needs, driving up costs. Limited regional energy resources also mean a reliance on imports, further contributing to higher prices.
7. Virginia — Average Electric Bill of $167
Virginia's high average electric bill stems from a combination of factors. The state's diverse climate demands both heating in the winter and cooling in the summer, increasing energy consumption year-round. Additionally, Virginia's growing population and economic development can strain existing infrastructure, necessitating investments that may raise costs. Limited in-state energy production and a reliance on out-of-state sources can also contribute to higher prices for consumers.
8. Florida — Average Electric Bill of $167
Florida's high average electric bill is primarily influenced by its hot and humid climate, leading to extensive year-round use of air conditioning. The state's rapid population growth and urbanization put additional demand on the energy infrastructure. While Florida has been expanding its renewable energy sources, the integration and transition costs can have short-term impacts on electricity pricing. These factors, combined, contribute to elevated bills for residents.
States With Lowest Electric Bill in 2023
On the other end of the spectrum, some states enjoy relatively lower average monthly electric bills. Here are eight states that have reported the lowest average electric bills in 2023:
1. Utah — Average Electric Bill of $84
Utah benefits from lower electric bills due to several factors. The state has access to abundant and affordable energy resources, including coal and natural gas. Additionally, Utah has been proactive in adopting renewable energy sources such as wind and solar, which can help lower electricity costs.
2. New Mexico — Average Electric Bill of $86
New Mexico benefits from lower electric bills due to its favorable renewable energy resources. The state has significant potential for solar and wind energy generation, which helps keep electricity costs relatively lower. New Mexico's lower population density also contributes to reduced transmission and distribution costs.
3. Colorado — Average Electric Bill of $101
Colorado has lower electric bills due to its diverse energy portfolio. The state has invested in renewable energy sources such as wind and solar, which have become more cost-competitive over time. Colorado's favorable regulatory environment for renewable energy development contributes to lower electricity costs.
4. Wyoming — Average Electric Bill of $103
Wyoming has relatively low electric bills due to its abundant coal reserves and the state's reliance on coal-fired power plants. The availability of low-cost coal for electricity generation helps keep electricity prices lower compared to other states.
5. Idaho — Average Electric Bill of $104
Idaho benefits from lower electric bills due to its access to affordable hydropower resources. The state has numerous hydroelectric dams, allowing for low-cost electricity generation. Idaho's relatively small population and lower energy consumption also contribute to lower electric bills.
6. Washington — Average Electric Bill of $110
Washington state's low average electric bill can be largely attributed to its abundant hydroelectric power resources, primarily from the Columbia River, which provides a significant portion of the state's electricity at relatively low costs. The state's commitment to renewable energy not only reduces reliance on more expensive fossil fuels but also stabilizes energy prices. Combined with energy-efficient practices and mild coastal climates in many populated areas, these factors help keep electricity bills lower for Washington residents.
7. Montana — Average Electric Bill of $112
Montana benefits from lower electric bills due to its abundant energy resources, including coal and hydroelectric power. The state's access to low-cost coal allows for relatively lower electricity prices. Montana also has a smaller population, contributing to reduced transmission and distribution costs.
8. Minnesota — Average Electric Bill of $117
Minnesota's relatively low average electric bill is influenced by its diverse energy portfolio, which includes wind, hydroelectric and coal power. The state has invested significantly in wind energy, which now supplies a considerable portion of its electricity at competitive prices. Furthermore, the efficiency programs and conservation efforts in Minnesota have been effective in curbing demand. This balance of diverse energy sources and demand-side initiatives helps in stabilizing costs for Minnesota residents.
These states benefit from factors such as lower energy consumption, favorable energy policies, availability of renewable energy sources and other regional considerations.
How did electric costs in Tennessee and Georgia compare to other states in 2023?
With an average monthly electric bill of $146, Tennessee residents experienced the 29th lowest energy costs, while Georgia ranked 32 with an average monthly power bill of $150.
Tennessee and Georgia have middle-ranking monthly energy costs due to a blend of factors. Both states benefit from a diversified energy mix, with nuclear, hydroelectric and fossil fuels playing significant roles, providing a balance in pricing. Additionally, the region's moderate climate, compared to hotter or colder states, leads to relatively stable energy demands. However, urban growth and the industrial demands in these states can sometimes push energy consumption higher. This balance of supply, demand, and resource diversification results in mid-tier energy costs for residents of both states.
How to conserve energy in any state
Conserving energy not only helps reduce your monthly electric bill — it also benefits the environment, which helps future generations have a happier, healthier life to look forward to. Here are some tips to help you conserve energy at home:
- Switch to LED light bulbs. LED bulbs use 75% less energy and last up to 10 times longer. Watch to learn more.
- Unplug electronics you aren’t using. Make this process easier by using power strips or smart plugs you can switch off when not in use.
- Set your thermostat to 72. Turn it up by one degree each day until you find the highest possible setting in the summer and lowest possible setting in the winter that still maintains your families comfort.
- Seal up your home. Seal doors and windows with weatherstripping or caulking. Add insulation to maintain a comfortable indoor temperature and reduce the need for excessive heating or cooling. Watch to learn more.
- Be mindful of water consumption. Fix leaks, take shorter showers, and use water-saving devices to reduce water and energy usage.
- Utilize natural light and heat. In the winter, open curtains and blinds during the day to make the most of natural light and reduce the need for artificial lighting. In the summer, close your window treatments to keep your home cooler.
- Change your air filters every 90 days or monthly if you have pets. This improves air flow and helps your HVAC system work more efficiently. Watch to learn more.
- If you’re an EPB customer, schedule a FREE EPB Energy ProsSM Home Energy CheckupSM. Customers who get a FREE EPB Home Energy Checkup and follow energy-saving recommendations save an average of 20% on their yearly energy costs. Learn more and talk to an EPB Energy Pro.
By implementing these energy-saving practices, you can contribute to both lower electric bills and a greener future.
The average electric bill in the United States varies depending on factors such as location, energy consumption, and state-specific rates. By understanding the average monthly electric bill in the U.S and exploring the states with the highest and lowest bills, you can gain insights into regional electricity trends. Remember, adopting energy-saving habits can help you lower your monthly electric bill while also benefiting the environment.
