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How Much Does Electricity Cost in Your State?

08/11/15

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Location, location, location. Many factors in your quality of life are affected by where you choose to live, including your energy costs. Wallet Hub recently released a report that surveyed the average energy costs, including electricity, in all 50 states. Read on to learn more about where your state falls in the rankings.

What Affects Electricity Rates?

A number of factors play into the price of electricity in a given state or region – the proximity of energy production and fuel sources, federal or state incentives, taxes, and the local competition in the energy market can all affect the final price.

The gap between the cheapest and most expensive states can be surprisingly large – electricity in Hawaii, the most expensive state, costs four times as much per unit as it does in Washington D.C., an electrician's paradise with the lowest price for power. Joining Washington D.C. among the cheapest electricity states are North Dakota, Idaho, Louisiana and West Virginia, while Vermont, Connecticut, Alaska and New York round out the most expensive five after Hawaii.

Adding Consumption to the Mix

Of course, there's more to your utility costs than just the base sticker price. How much electricity you consume plays a role as well. Those homeowners paying sky-high prices in Hawaii, for example, also use the least electricity per household in the entire United States. Residents in Louisiana, on the other hand, use the most electricity per household, thanks to sweltering hot weather that goes hand-in-hand with significant reliance on electric air conditioning.

Given the combination of price and consumption, people living in Washington, D.C. spend the least amount on electricity, forking over an average of $79 per month, followed by residents of Illinois, New Mexico, Utah and Colorado. Despite their low consumption levels, people in Hawaii still get the highest bills, at an average of $179 per month. Residents of Alabama, Mississippi, South Carolina and Florida join them in the top five for overall electricity spending.

Let the Electricians Guide You to Lower Bills

The report also includes interviews with energy experts on how to save money on utility bills, as well as the impact of tax deductions, credits and energy assistance for low-income households in the utility market.

“Consider calling your utility company and asking if they offer any services to help you identify ways to be more efficient in your home,” Sanya Carley, associate professor in the School of Public and Environmental Affairs at Indiana University, suggests. “Many utilities offer such services for free, and will send someone to your house to prepare a formal or informal audit for you.”

To see the full list and find out where your state ranks when it comes to electricity and other household energy costs, check out the WalletHub report here. If you need tips on how to conserve electricity to reduce your utility bills no matter what the sticker price of energy is in your state, contact an expert electrician today.



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