Methodology → Electricity Rates
How Electricity Rates Are Presented
This page explains how PriceOfElectricity.com presents electricity rates and converts them into dollar-based monthly estimates.
What an average electricity rate means
The site uses state-level average residential electricity rates. These are blended averages across customer classes and utilities within each state. They are EIA all-in average residential retail rates (total revenue ÷ kWh), which already include delivery (transmission and distribution) charges. Estimates don't add separately billed taxes, fixed fees, or other utility charges that vary by utility.
Rates in cents per kWh
All rates are presented in cents per kilowatt-hour (¢/kWh). This is the standard unit for residential electricity pricing in the United States. To convert to dollars per kWh, divide by 100.
Conversion to monthly bill estimates
The site converts cents per kWh to dollar-based monthly estimates using a standard usage assumption. Household bill estimates depend on this usage assumption; actual bills vary with consumption, climate, home size, and appliance efficiency.
rateDollarsPerKwh = avgRateCentsPerKwh / 100 monthlyBill = rateDollarsPerKwh * 900
The factor 900 represents 900 kWh of monthly usage, a common reference point for typical U.S. residential consumption.
Data corrections
The U.S. Energy Information Administration issued a correction to Maryland's March 2026 residential average after an initial release overstated the rate. This site uses the corrected figure of 22.2¢/kWh for that month.
City rates
City electricity pages show a modeled estimate, not a measured city average. The estimate starts from the state's monthly EIA residential average and applies a small population-based adjustment (typically 1.01× to 1.06× for larger metros). No authoritative monthly city-level residential rate series exists at national scale, so PriceOfElectricity.com does not publish measured city rates.
Limitations
Bill estimates are illustrative only. Actual usage varies by household. Time-of-use rates, demand charges, and tiered pricing are not modeled.