Why electricity costs so much more in some states
Hawaii pays more than three times what North Dakota pays per kWh. Here is what drives the gap.
By Felipe Guilherme de Oliveira Bueno. Updated November 11, 2026.
From January to August 2026, homes in Hawaii paid 46.41 cents per kWh. Homes in North Dakota paid 12.46 cents. Same product, very different price. The five most expensive states were Hawaii, California, Maine, Massachusetts, New York. The five cheapest were North Dakota, Nebraska, Idaho, Utah, Louisiana.
What goes into the price
- How the power is made. States with large hydroelectric dams or cheap local fuel tend to have lower generation costs. States that must bring fuel in from far away pay more. Hawaii is the clear example: it is an island grid that has long relied on imported fuel.
- The cost of the wires. Poles, lines, substations and their upkeep are a big part of the bill. Spread-out service areas, storm and wildfire hardening and old equipment all raise this part.
- Rules and market design. Each state regulates its utilities differently. Some let customers choose a supplier. Policies on renewable energy, efficiency programs and taxes also show up in rates.
- Demand and weather. Places with heavy air conditioning or electric heating need more capacity for peak days, and that capacity has to be paid for all year.
A high rate does not always mean a high bill
The bill is rate times use. A state with a low rate and long, hot summers can end up with higher monthly bills than a mild state with a high rate. That is why this site shows the cost per appliance and not just the rate.
Your own rate may differ from the state average
The EIA figure is an average across all utilities and plans in the state. Your utility, your rate plan, time-of-use pricing and fixed charges can put you above or below it. For the most accurate result, use the price per kWh from your own bill.
How we get these numbers: yearly electricity use comes from the ENERGY STAR certified product lists, measured with the federal test procedure. The rate is the average residential price the U.S. Energy Information Administration reports for each state, January to August 2026. Your own bill depends on your utility, your plan and how you use the appliance. See sources.