Why electricity prices differ so much from state to state
In July 2026 the EIA average residential price was 12.72 cents per kWh in Louisiana and 48.00 cents in Hawaii, about 3.8 times higher. The median state was 16.09 cents. The same appliance running the same hours costs very different amounts depending on where you live.
The lowest and highest, July 2026
| Lowest | ¢ per kWh | Highest | ¢ per kWh |
|---|---|---|---|
| Louisiana | 12.72 | Hawaii | 48.00 |
| Nevada | 12.77 | California | 33.61 |
| Utah | 13.12 | Maine | 32.41 |
| North Dakota | 13.41 | Massachusetts | 30.49 |
| Tennessee | 13.71 | New York | 29.90 |
These are EIA average residential prices as stored on this site. See the full list on the state price pages.
What an average price contains
EIA computes the price by dividing utility revenue from retail sales by the kilowatt-hours sold. It includes generation, transmission, distribution, taxes and fees. So a state's price reflects everything between the power plant and the meter, and differences can come from any of those parts.
What EIA says about causes
EIA has written about some of the clearest cases:
- Hawaii. In its analysis of 2021 residential expenditures, EIA found Hawaii had the highest average monthly bill despite the lowest consumption of any state, and attributed this to the state's utilities using significant amounts of petroleum for electricity generation.
- New England. EIA linked higher prices there to constraints on natural gas pipeline capacity during peak demand, which raise the cost of generation.
We do not give a cause for every state here, because that needs state-by-state evidence. Broadly, differences come from how electricity is generated, what the grid costs to build and maintain, regulation and taxes.
Price is not the same as a bill
A low price does not always mean a low bill. EIA notes that Alabama, South Carolina and Mississippi have high bills even though their prices are relatively low, because households there use more electricity, linked to more air conditioning and more electric space heating. A bill is price multiplied by usage.
What this means for appliance costs
An appliance uses the same kWh anywhere, but the cost moves with the price. A model that uses 500 kWh a year costs about $63.60 at Louisiana's 12.72 cents and $240.00 at Hawaii's 48.00 cents.
For your own estimate, the state average is a good first guess. Your bill gives the better number: see your rate versus the state average.