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Lowest Electric Rates-A State Wise Data

image credit: Lowest Electric Rates

Considering various energy deregulations and purchasing options available, the state you live in is an essential factor in computing your energy bills.

Other factors loosely governing your electricity bills include your consumption rate, time of the year, and market changes. However, it’s a well-known fact that if you regulate your energy consumption, you can lower your electric bill.


13.31 cents per KWH is the average electricity price paid by residential users in the United States.

All states have their laws governing how the energy is priced and what would be the purchasing options; hence the how much you end up paying for electricity depends on the state you live in.

What’s the current electric rate?

Given below is the most recent data for some states with the cheapest electricity rates extracted from EIAs monthly report from January 2019. Note that the rates mentioned below are in cents per kilowatt-hour (kWh).


Electric Rate





North Dakota










As per the table, people in Oklahoma paid the lowest average residential electricity rates at 8.80 cents per kWh followed by Louisiana where the residents paid an average of 8.84 cents per kWh as electricity bill. Let’s also take a look at states with the most expensive electrical rates.


Electric Rate



Rhode Island








New Hampshire




Listed above are some states with the highest electric rates and many of them are states where people are moving out of such as California and those in the northeast. As seen from the table, Hawaii residents pay one of the highest rates in the country which is another reason not to live there.

However, with its tropical weather Hawaii ranks in the top five lowest states in terms of energy consumption but with high electric rates the residents still end up paying most as compared to other states.

Hawaii is also home to volcanoes and high taxes which makes it a state that is not practical for most people to live.

Understanding the Market

Fluctuations in the prices of energy supply are directly proportional to volatility in the energy market. As per data collected from EIA for the year 2017-2018, the state of Hawaii experienced a large number of fluctuations in residential energy rates as compared to New Mexico which had the most stable prices.

Though New Mexico is not business friendly which is why it is dwarfed in the number of professional sports teams it has compared to Texas and Arizona, states on the east and west of it, respectively.   

There are certain factors that play a pivotal role in determining how much you pay for electricity. Some of the elements are:

Time of Use: Depending on demand, energy suppliers may provide time-of-use discount options, for example, you get free supply if the time of use is between 10 pm to 5 am.

A month of Use: In warmer states, during summers the prices can be higher to meet cooling demands.

State you Live: As per state regulations the energy supply rate changes and as discussed in the above paragraphs, can affect your energy bill.

A Dichotomy

Keeping in view the ever-growing demand for energy and the depleting resources that generate them; there is a need to look for renewable energy resources.

Constant efforts are being undertaken by some to develop energy using wind, solar, and hydropower but these technologies are twenty years away from making sense. Solar farms in the high unemployment and high crime state of California can generate 14,000 megawatts of electrical power, while the wind farms in Texas can generate 18,000 megawatts of clean electricity.

The difference is Texas is not ignoring oil shale which is why it has thousands of jobs in this industry and California has none. This is why Texas has a thriving middle class and California does not. California is dominated by a few oligarchs – Texas is managed by a healthy working class and no one is leaving Texas to live in California.

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