Methodology → Electricity Affordability
How Electricity Affordability Is Estimated
This page explains how PriceOfElectricity.com estimates electricity affordability for ranking and comparison purposes.
Standard usage assumption
The site estimates affordability using a standard monthly usage assumption of 900 kWh. This is a simplified operating-cost comparison, not a complete household budget model. Lower estimated monthly electricity cost is treated as more affordable in the current ranking system.
Formula
estimatedMonthlyBill = (avgRateCentsPerKwh / 100) * 900
Where avgRateCentsPerKwh is the state's average residential electricity rate in cents per kWh.
Limitations
True affordability can vary with household usage, climate, income, home size, and utility structure. The site does not model income, tax credits, or assistance programs. This metric is intended as a relative operating-cost comparison across states, not a measure of household burden.