Why is electricity so expensive in Alaska?
Alaska pays 28.21¢/kWh for residential electricity, 53.8% above the U.S. average of 18.34¢/kWh and the #7 highest of 51 jurisdictions. At 900 kWh a month that is about $253.89, against $165.06 at the U.S. average.
Rates are EIA residential averages through June 2026, refreshed Sep 9, 2026. The U.S. average is the EIA U.S.-total residential price; rank and region figures compare the 51 jurisdiction averages.
How Alaska compares
| Measure | Alaska |
|---|---|
| Residential rate (EIA, June 2026) | 28.21¢/kWh |
| U.S. average (EIA) | 18.34¢/kWh |
| Difference | +53.8% (+9.87¢) |
| Rank among 51 jurisdictions | #7 highest (#45 lowest) |
| West average (13 states) | 20.42¢/kWh |
| Affordability tier | Affordable (index 62/100) |
| 12-month change | rose 5.0% (26.87¢/kWh → 28.21¢/kWh) |
| 5-year change | rose 19.6% (23.58¢/kWh → 28.21¢/kWh) |
See every state in one ranked table on electricity cost per kWh by state or the West region.
What the EIA series shows for Alaska
- Past 12 months (June 2025 → June 2026)
- The Alaska residential rate rose 5.0% (+1.34¢/kWh), from 26.87¢ in June 2025 to 28.21¢ in June 2026.
- Past 5 years (June 2021 → June 2026)
- The rate rose 19.6% (+4.63¢/kWh), from 23.58¢ in June 2021 to 28.21¢ in June 2026.
- Past 10 years (June 2016 → June 2026)
- The rate rose 34.7% (+7.27¢/kWh), from 20.94¢ in June 2016 to 28.21¢ in June 2026.
- Highest and lowest month on record
- In this series the Alaska rate peaked at 28.23¢/kWh in May 2026 and bottomed at 11.22¢/kWh in January 2001. The series covers January 2001 to June 2026.
- Steepest 12-month increase
- The largest single-year move in the series ended in April 2008: the rate rose 19.0% (+2.78¢/kWh), from 14.60¢ in April 2007 to 17.38¢ in April 2008. That is when the change happened; the series does not say what caused it.
- Against the rest of the country
- Over the same window the unweighted average across the 51 jurisdictions with data for this period rose 34.8%, so Alaska's +19.6% lagged the nationwide move by 15.2 percentage points. That gap is the part of the movement this dataset cannot attribute to a nationwide trend — it does not identify what else was involved.
- Rank among jurisdictions (June 2021 → June 2026)
- Measured over that identical five-year window, Alaska's change is the 42nd largest of the 51 jurisdictions whose series covers it — rank 1 is the biggest increase, rank 51 the biggest decrease. The rank places the movement; it does not explain it.
Between January 2001 and June 2026 the rate peaked at 28.23¢/kWh in May 2026 and bottomed at 11.22¢/kWh in January 2001.
Every month is charted on the Alaska electricity price history page, with the year-over-year table and the same measured facts.
What sits on top of the rate in Alaska
Chugach Electric Association's standard residential tariff adds $12.79 a month before the first kilowatt-hour, 1.81¢/kWh in riders, for an all-in 25.83¢/kWh at 900 kWh.
The line items are on hidden electricity fees and taxes for Alaska.
What generally moves electricity rates
A rate series shows what changed, not why. This dataset records Alaska's residential rate and nothing about what moved it, and no reviewed Alaska driver analysis is published yet — so this page makes no causal claim. The factors that generally move retail rates are documented separately.
- Fuel and purchased power. Natural gas, coal, and wholesale power prices pass through to retail rates, often with a lag of months.
- Generation mix. Hydro and legacy nuclear tend to hold rates down; imported fuel, oil, and constrained supply tend to push them up.
- Wires investment. Transmission and distribution upgrades, storm hardening, and wildfire mitigation are recovered through rates over years.
- Market structure. Regulated utilities set rates in rate cases; deregulated markets price supply competitively and bill delivery separately.
- Demand and weather. Load growth, peak-heavy demand, and extreme weather raise the cost of serving each kilowatt-hour.
the factors themselves are documented on electricity generation cost drivers.
What the rate means for a Alaska bill
| Monthly usage | Alaska (28.21¢/kWh) | U.S. average (18.34¢/kWh) |
|---|---|---|
| 650 kWh | $183.37 | $119.21 |
| 900 kWh | $253.89 | $165.06 |
| 1,200 kWh | $338.52 | $220.08 |
| 1,600 kWh | $451.36 | $293.44 |
- Average electric bill in Alaska, by home size and city.
- Estimate a Alaska bill from your own usage.
- Why is my electric bill so high? The eight usual causes and what to check first.
Frequently asked questions
Why is electricity so expensive in Alaska?
Alaska pays 28.21¢/kWh for residential electricity, 53.8% above the U.S. average of 18.34¢/kWh and the #7 highest of 51 jurisdictions. Over the past 12 months the rate rose 5.0% (26.87¢/kWh → 28.21¢/kWh), and over five years it rose 19.6% (23.58¢/kWh → 28.21¢/kWh). The EIA series records the rate and nothing about what moved it, and no reviewed Alaska driver analysis is published yet, so no cause is claimed here.
How does Alaska's electricity rate compare with the U.S. average?
28.21¢/kWh in Alaska against 18.34¢/kWh for the U.S. average (EIA, June 2026): 53.8% above, the #7 highest of 51 jurisdictions. The West average across 13 states is 20.42¢/kWh. At 900 kWh a month that is about $253.89, against $165.06 at the U.S. average.
Is electricity in Alaska getting more expensive?
Over the past 12 months the rate rose 5.0% (26.87¢/kWh → 28.21¢/kWh), and over five years it rose 19.6% (23.58¢/kWh → 28.21¢/kWh). In EIA data from January 2001 to June 2026, the rate peaked at 28.23¢/kWh in May 2026 and bottomed at 11.22¢/kWh in January 2001. The full monthly series is on the Alaska electricity price history page.
What can I do about a high electric bill in Alaska?
Start with the kWh line: compare this bill with the same month last year, then the price per kWh, the billing days, and the fixed charges. Chugach Electric Association's standard residential tariff adds $12.79 a month before the first kilowatt-hour, 1.81¢/kWh in riders, for an all-in 25.83¢/kWh at 900 kWh. The high-bill guide walks through the eight usual causes.