U.S. average retail price of residential electricity 1975-2018

The average retail price of residential electricity has risen steadily in the United States, reaching a peak of almost 13 cents per kilowatt hour in 2018. In the United States, electricity prices tend to reflect costs related to construction, finance, maintenance, and operation of power plants and electricity grids.

How do electricity rates differ?

The price of electricity can vary widely across the states with Hawaii having one of the highest rates and Idaho one of the lowest. In Hawaii, the high price of crude oil can drive up electricity prices. There is virtually no fuel used in the generation of hydropower, and the cost of dams is spread over several decades, keeping costs low in states which use hydropower as the main source of electricity, such as Idaho. Cost of electricity can vary based on the primary power source used. In other states like Louisiana, electricity costs are low because a company, Entergy Louisiana in this case, creates energy and provides it to the state rather than purchasing it from another entity. The costs required to operate and maintain transmission and distribution systems also impact the prices that a household pays.