Electricity prices vary widely across the U.S. While the U.S. average electricity rate is 17.01 cents per kilowatt-hour (kWh), state averages range from less than 12 cents to over 30 cents per kWh, depending on the state.

California's Electricity Rates & Key Findings:
• From 2023 to 2024, California’s electricity rate increased by 10.6%.
• The state’s average residential electricity rate is 32.68 cents per kilowatt-hour (kWh)—nearly double the national average of 17.01 cents per kWh.
• Among the contiguous U.S. states, California has the highest electricity rates, second only to Hawaii (39.62 cents per kWh).
• California operates in a deregulated energy market, meaning some consumers may have options to shop for lower rates.

The Home Energy Club found states with abundant energy resources tend to have lower electricity rates than those relying on imported energy. For example, Texas and California both generate a large portion of their power using natural gas, but Texas has much lower electricity costs due to its abundant gas reserves.

Story Date: March 17, 2025