Why Electricity Is Cheap
Some states have lower electricity prices than others. This page explains factors that can contribute to lower electricity prices—without attributing specific causes to any single state.
Factors That Can Contribute to Lower Prices
- Fuel availability — Access to low-cost hydro, nuclear, or wind can reduce generation costs.
- Infrastructure — Efficient grid design and lower transmission costs can help keep rates down.
- Generation resources — Diverse, low-cost generation mix can support lower retail prices.
- Market design — Competitive markets, long-term contracts, and regional advantages can influence pricing.
National Context
The U.S. national average residential rate is 17.57 ¢/kWh. States with the lowest average rates include Idaho (11.74 ¢/kWh).
Electricity cost by state — Compare rates and estimated costs
Related Pages
- Electricity cost by state — Compare rates and estimated costs
- Electricity cost comparison — Compare two states side by side
- Power generation mix — How fuel mix can influence prices
- State-specific context: Why electricity is cheap in Idaho, North Dakota, and other low-rate states