In this article, we will be taking a look at the 20 cities with the highest electricity rates in the US. You can also check out 20 Countries with the Highest Cost of Electricity.
Navigating the Global Energy Landscape: Challenges and Trends in Electricity Prices and Generation
The global electricity industry has faced pressing challenges in recent years. According to the International Energy Agency’s Electricity Market Report 2023, economic slowdowns and soaring electricity prices stifled electricity demand growth in most regions around the world in 2022. The European Union experienced a sharp 3.5% decline in electricity consumption due to high energy prices and demand destruction among industrial consumers.
The global power generation market size was estimated at USD 1.8 trillion in 2022 and is expected to reach around USD 3.9 trillion by 2032, growing at a CAGR of 8.04%. Fossil fuels still dominate the power generation market, accounting for around 57% of the total share, while renewable sources like solar are expected to register the fastest growth.
If we talk about the US, the US electricity industry has undergone restructuring over the past 20 years, with the formation of Regional Transmission Organizations (RTOs) and Independent System Operators (ISOs) in certain regions. Wholesale electricity prices in the US are heavily influenced by natural gas prices, as natural gas-fired generation units are often the marginal source of power. In regions like California, the electricity market has experienced periods of sustained high prices due to a lack of competition and tightening capacity. Hawaii is said to have the highest electricity rates in the US at 43.93 cents per kilowatt-hour. As far as electricity usage is concerned, Miami is one of the US cities that uses the most electricity as of 2017. The average monthly electricity usage stood at 1,125 kilowatt hours. Also, if you are someone who would want to move to a state with the cheapest electricity in the USA then Idaho is a great option. The electricity rate in Idaho is just 10.35 cents per kilowatt-hour.
According to the US Energy Information Administration (EIA), around 35 million households (27% of all households) experienced energy insecurity in 2020 which means they struggled to pay their energy bills or had to forgo other necessities to pay those bills.
The IEA estimates that global power sector emissions reached a new all-time high of about 13.2 Gt CO2 in 2022, a year-on-year increase of 1.3%. By 2025, the Asia Pacific region is projected to account for 67% of global power sector emissions, up from 64% in 2022. In the US, natural gas prices exceeded $15/MBtu in February 2021 due to supply constraints, significantly impacting electricity generation costs. The average cost of gas-fired power generation in the US, including emission costs, is projected to reach around $150/MWh by 2025, while coal-fired generation is expected to be around $100/MWh.
In Europe, the cost of gas-fired power generation, including emission costs, is projected to reach around $300/MWh by 2025, while coal-fired generation is expected to be around $200/MWh. In Japan and Korea, the cost of gas-fired power generation is projected to be around $400/MWh by 2025, while coal-fired generation is expected to be around $150/MWh.
Also see 20 Countries That Produce the Most Electric Power and Top 20 Countries with Highest Electricity Consumption.
Copyright: nexusplexus / 123RF Stock Photo
Our Methodology
For our methodology, we have ranked the cities with the highest electricity rates in the US based on their monthly median electricity costs. For the accuracy of data, we relied on 2020 data from the US Census Bureau’s American Community Survey.
Here is our list of the 20 cities with the highest electricity rates in the US.
20. Kansas City, MO-KS
Median Electricity Cost: $150
In July 2023, Evergy filed a request with the Kansas Corporation Commission (KCC) to raise electricity rates for residential customers in the Kansas Metro region (including parts of Kansas City, KS) by around 5.9%, and in the Kansas Central region by 9.77%. However, after public hearings and recommendations from consumer advocacy groups, the KCC approved a lower rate increase in November 2023, Kansas Central customers will see a 3.54% revenue increase for Evergy, translating to an average monthly bill increase of $4.64, and Kansas Metro customers will actually receive a rate decrease, paying $6.07 less per month on average.
19. New York-Newark-Jersey City, NY-NJ-PA
Median Electricity Cost: $150
The residential electricity rates in both New Jersey and New York are significantly higher than the national average of around 14.88 cents/kWh as of February 2024. In February 2024, the average residential electricity rate in New Jersey was 17.69 cents per kilowatt-hour (kWh), up from 16.99 cents/kWh in February 2023, an increase of 4.0%. In New York, the average residential electricity rate in February 2024 was 24.23 cents/kWh, up 2.5% from 23.63 cents/kWh in February 2023.
18. Baltimore-Columbia-Towson, MD
Median Electricity Cost: $160
Baltimore-Columbia-Towson, MD is one of the cities in the US with the highest electricity rates. According to the Bureau of Labor Statistics, households in this area paid an average of 18.2 cents per kilowatt hour (kWh) of electricity in March 2024, up 2.8% from March 2023. In November 2023, the average rate was also 18.2 cents per kWh, an increase of 7.1% compared to November 2022.
17. Phoenix-Mesa-Chandler, AZ
Median Electricity Cost: $160
The median monthly electricity cost in the Phoenix-Mesa-Chandler area is $160, which is significantly higher than the national median of around $115 Electricity accounts for 66.2% of the total utility costs and 13.6% of the total housing costs in this metro area.
16. Richmond, VA
Median Electricity Cost: $160
The average residential electricity rate in Richmond is 13¢/kWh, which places Richmond among the cities with the highest electricity rates in the US. For commercial customers, the average electricity rate in Richmond is 8.24¢/kWh. Dominion Energy, the major utility provider, charges higher rates for lower electricity usage. Their rates have a perverse incentive structure where customers pay more per kWh for the first 800 kWh used each month from June to September. Residential customers pay a flat $6.58 monthly customer charge, increasing the effective rate for lower usage.
15. Brownsville-Harlington, TX
Median Electricity Cost: $170
Brownsville-Harlingen, located in Cameron County, Texas, is known for having some of the highest electricity rates in the United States. According to the data from EnergySage, the average residential electricity rate in Cameron County, TX, is 14 ¢/kWh. The region’s distance from major power generation facilities, such as those in East and North Texas, results in higher transmission and distribution costs.
14. San Antonio-New Braunfels, TX
Median Electricity Cost: $170
San Antonio-New Braunfels stands fourteenth among the cities with the highest electricity rates in the US. CPS Energy, the primary electricity provider in San Antonio, offers residential electricity rates ranging from 7 cents/kWh to 12 cents/kWh for their fixed-rate plans. The average cost per kWh for residential customers in New Braunfels was 11.7 cents in March 2024, with a 12-month average of 11.5 cents/kWh. New Braunfels Utilities (NBU) charges a fixed Electric Service Availability Charge of $20 per month, in addition to variable kWh charges.
13. Houston-The Woodlands-Sugarland, TX
Median Electricity Cost: $170
The average electricity rate in the Houston-The Woodlands-Sugarland metropolitan area is around 14.2 cents per kilowatt-hour (kWh). The cheapest 12-month fixed-rate electricity plan in Sugar Land, TX is offered by Express Energy at $0.123/kWh. For longer 36-month contracts, the lowest rate is $0.131/kWh from Veteran Energy. Renewable energy plans from providers like Green Mountain have rates ranging from $0.162 to $0.169/kWh for 24 and 36-month terms, respectively.
12. Dallas Fort Worth-Arlington, TX
Median Electricity Cost: $170
The current average residential electricity rate in Dallas-Fort Worth-Arlington is around 16.97¢ per kWh which places Dallas on the 12th spot among the US cities that pay the highest electricity bills. For a typical home in Fort Worth using 937 kWh per month, the average monthly electricity bill is $155.54. The cheapest 12-month electricity plan available in Fort Worth is from 4Change Energy and Frontier Utilities at 12.8¢ per kWh. For longer 24-month and 36-month contracts, the cheapest rates are around 13.6¢ to 14.9¢ per kWh from providers like Chariot Energy, TriEagle Energy, and OhmConnect Energy.
11. Columbia, SC
Median Electricity Cost: $180
The average residential electricity rate in Columbia is 17 ¢/kWh, which is 15% higher than the average rate in South Carolina of 14.46 ¢/kWh and 9% lower than the national average rate of 18 ¢/kWh. To offset 100% of their annual electricity consumption of 14,616 kWh, the average Columbia resident would need a 9.8 kilowatt (kW) solar panel system costing around $28,000 before incentives. Installing such a system with a $0-down loan can save a Columbia resident $2,400 in the first year, $12,600 over five years, $26,300 over 10 years, and $57,800 over 20 years on electric bills, assuming a 1.8% annual increase in electricity prices.
10. Orlando-Kissimmee-Sanford, FL
Median Electricity Cost: $180
Orlando-Kissimmee-Sanford, FL is one of the cities in the US with the highest electricity rates. The average residential electricity rate in Seminole County, which is part of the Orlando metro area, is 18 cents per kilowatt-hour (kWh), which is 10% higher than the average rate in Florida of 15.21 cents/kWh. To offset 100% of their annual electricity consumption of 17,028 kWh, the average electricity customer in Seminole County would need an 11.3 kilowatt (kW) solar panel system, which costs an average of $29,000 before incentives.
9. Jacksonville, FL
Median Electricity Cost: $180
The average residential electricity rate in Jacksonville, FL is 13 cents per kilowatt-hour (kWh), which is 30% higher than the national average of 10 cents/kWh. In 2022, the fuel charge spiked as high as $83 per month for a 1,000 kWh household due to volatile fuel prices.
8. Trenton, NJ
Median Electricity Cost: $180
The average cost of residential electricity in Trenton is 22.68 cents per kilowatt-hour (kWh), significantly higher than the statewide average of 17.50 cents/kWh and the national average of 14.92 cents/kWh. New Jersey has deregulated its electricity market, allowing residents to choose their energy suppliers. However, the average residential electricity rate in New Jersey is $0.1614 per kWh.
7. Corpus Christi, TX
Median Electricity Cost: $190
The average residential electricity rate in Corpus Christi is around 17¢ per kWh, which is 24% higher than the average rate in Texas (13.55¢/kWh) and 8% lower than the national average of 18¢/kWh. According to ElectricityPlans.com, some of the lowest 12-month fixed rates in Corpus Christi as of May 2024 are 11.9¢/kWh from providers like Gexa, Frontier, and 4Change Energy.
6. Huntsville, AL
Median Electricity Cost: $190
Huntsville Utilities, the primary electricity provider in the area, charges an average residential rate of 11.35 cents per kilowatt-hour (kWh), which is 24.23% lower than the national average of 15.59 cents/kWh, placing Huntsville, AL among the cities with the highest electricity rates in the US . However, this rate is still higher than the state average of 14.98 cents/kWh for Alabama. In 2022, Huntsville Utilities reported total electricity sales of 5,606,142 megawatt-hours (MWh), with retail sales accounting for 96.27% of this amount. Their revenue from electricity-related activities was $608,141,600, with $585,430,000 coming from retail sales to end-users
5. Mobile, AL
Median Electricity Cost: $200
Mobile, AL stands fifth among the cities with the highest electricity rates in the US with the residents paying around $200 for electricity monthly. The average residential electricity rate in Mobile is 11.74¢/kWh. The average commercial electricity rate in Mobile is 10.71¢/kWh, while the industrial rate is 6.07¢/kWh.