The Average Electricity Rates
How Does Electricity Work?
The way electricity works in the US is that the Federal government, through the Federal Energy Regulatory Commission, regulates interstate power sales and services. State governments, through their public utility commissions or equivalent, regulate retail electric service.
Some states like Texas have a deregulated energy market. This means Retail Electric Providers buy energy on the wholesale market (generators). They then sell it to consumers (you).
Coal, natural gas, nuclear energy, or renewable resources such as water, wind, or solar energy is used to generate electricity in the US.
The states have different sorts of pricing structures. Here are a few:
- Fixed-rate: You have to pay a fixed rate for the duration of the contract (usually 1, 3, or 5 years). Politics, refinery accidents, trade wars, or any other external factor does not affect the fixed rate in any way.
- Variable-rate: If you go for a variable plan, you agree to pay whatever the utility determines to be a fair price based upon current market conditions. The rate will change every month depending on outside influences.
- Average Billing: Your monthly bill will be based on a rolling 12-month average usage.
- Time-of-Use (TOU): Depends on when you use electricity, Off-peak, and On-peak. In Southern states, summer rates can be higher than winter rates due to higher energy demand.
- Tiered: You can use a certain amount of energy each month at a lower price. Once you exceed the threshold, the price goes up accordingly.
Note: Every electric utility offers a different pricing structure. There might be more than one option available, so make sure you go through them carefully.
What Are the Factors Affecting the Cost of Electricity?
Here are a few factors that affect the cost of electricity in the US: Location (rural or urban), Municipality, Distribution service area, Electricity supply charge, GST, Transmission tariff, Distribution tariff, Electricity demand, Natural gas, coal, and oil prices, Transmission losses, Industrial demand, Power plant costs, Weather conditions, Time of year, Regulations (Regulated or Deregulated), Variable or fixed rates, Utility and CO2 taxes.
Electricity prices vary by locality due to the availability of power plants and fuels, local fuel costs, and pricing regulation and structures.
What Are the Average Monthly Electricity Rates?
Electricity Rates for Each Census Division
| Census Division | Residential Rates (cents/kWh) |
| New England | 27.51 |
| Middle Atlantic | 19.41 |
| East North Central | 15.95 |
| West North Central | 12.11 |
| South Atlantic | 14.24 |
| East South Central | 12.87 |
| West South Central | 13.46 |
| Mountain | 13.46 |
| Pacific Contiguous | 20.72 |
| Pacific Noncontiguous | 33.70 |
| US Total | 15.73 |
- Hawaii has the highest average electricity rate of 41.60 cents per kilowatt-hour.
- North Dakota has the lowest average electricity rate of 10.23 cents per kilowatt-hour.
Average Monthly Electricity Rates Based on Usage in the USA
| Electricity (kWh) | Average Monthly Cost
@15.73 cents/kWh |
| 600 kWh | $94 |
| 750 kWh | $118 |
| 1000 kWh | $157 |
| 783 KWh
(US Average) |
$123 |
*The average monthly cost does not include any taxes or monthly services charges, as they vary from state to state.
The Average Rates for Water Bills
How Does Water Work?
The way water works in the US is that every city has its own water utility that delivers safe domestic water to your home and takes care of the wastewater too. In return for these services, you pay an amount proportional to the usage in a month.
The rates in Washington, DC are different from New York or any other city. The reason is that the cost to deliver, treat, and dispose of water will differ depending on the geographical location.
A meter is installed outside your home that measures the usage. You pay a fixed amount monthly depending on
You are billed for the following things:
- Tap Water
- Sewerage
Some states/cities also offer a flat fee structure. All customers are charged the same fee, regardless of the amount of water used. But it is not an efficient way to generate revenue to maintain the whole water infrastructure.
The uniform rate structure has a fixed per-unit price for all metered units of water consumed in a billing period. It is further broken down into the following components:
- Fixed fee component: Costs of billing, meter maintenance, and future meter replacement.
- Variable amount: Includes the cost of drawing water from the water source, cost of operating and maintaining the aqueduct, pumping stations, reservoirs, drinking water treatment plant, and distribution system.
Some states/cities have seasonal pricing that covers a specific time period. They are established to encourage conservation during peak use periods.
For example, Oklahoma City has a tiered rate structure, meaning the cost of water goes up along with the consumption.
Most states like California have regulated water utilities. The state’s utility commission sets the rates and service terms for all the regulated water utilities.
What Are the Factors Affecting the Cost of Water?
Here are a few factors that affect the cost of water: Maintenance and upgrades to the water system, Type of home, Meter size, Household members, Seasonal usage, Appliances, Water treatment plant costs, Type of pricing structure, State/City and Cost of drawing water from the lakes.
What Are the Average Rates for Water Bills per Month?
The average American uses over 100 gallons of water per day; the average residence uses over 100,000 gallons during a year.
Here’s what you can expect to pay for water in average in the US: $90
If we talk specifically about New York, here’s how much you’ll be paying everything a month:
| Cubic Meter (m3)
monthly usage |
Average Cost
$4.49/m3 |
| 10 m3
1-2 people |
$45 |
| 20 m3
2-3 people |
$90 |
| 30 m3
3-5 people |
$135 |
*Doesn’t include wastewater/sewer charges.
*Doesn’t include fixed meter charges.
According to NYC government, the combined cost of water and sewer is $11.63 per 100 cubic feet.
The Average Natural Gas Prices
How Does Natural Gas Work?
The way natural gas works in the US is that domestic natural gas markets are regulated in part by the Federal Energy Regulatory Commission. American Gas Association (AGA) Represents natural gas pipelines and distribution companies both in the US and outside the US.
Natural Gas is produced and then sold on the competitive market. Gas retailers buy the commodity and charge you for the amount of natural gas you use each month or the natural gas supplied to you every month.
- Gas Delivery Service: Covers the cost of storing, transporting, and distributing natural gas to your home or business. It does not account for the actual cost of gas, just the cost of delivering the gas to you.
- Gas Supply Service: This is the cost of natural gas (or the Commodity Rate). You can buy it from any other natural gas retailer.
In summary, natural gas companies drill and send the gas to your town through gas mains buried underground. Utility companies bring it to your house in smaller pipes.
Your natural gas bill consists of these two charges:
- Supply charges: Comes from the retailer and accounts for the amount of natural gas you use each month.
- Delivery charges: Comes from the utility and covers transportation and delivery costs.
Natural gas prices vary greatly throughout the US. It is more expensive in Hawaii and cheaper in Idaho and North Dakota. The high price of gas reflects the difficulties involved in transporting oil and refined products to the state.
What Are the Factors Affecting the Cost of Natural Gas?
Natural gas is traded in a competitive market where the sellers put gas on sale and the buyers (gas utility companies) bid for purchase. The prices vary throughout the year.
Natural gas utilities do not earn a profit on the natural gas they deliver. They earn their revenues from the service and delivery fees they charge customers to transport the natural gas to them.
Following factors affect the cost of natural gas in the US: Transmission and distribution service area, Municipality, Season (winter or summer), Delivery charge, Usage, State, Plan (Fixed or quarterly rate service), Supply/Demand, State’s average temperature and Home size.
What Are the Average Monthly Natural Gas Prices?
The main item on your gas bill will be your gas usage, which will be measured in CCFs (hundreds of cubic feet) or in therms.
Here’s what you can expect to pay for natural gas in the US: $15.95 per thousand cubic feet.
| Usage Per Month (m3) | Average Monthly Cost (@1.92¢/f3) |
| 6000 | $115 |
| 7500 | $144 |
| 9000 | $173 |
| 5880
National Average: 142 f3 per day |
$113 |
In 2023, U.S. retail gasoline prices averaged $0.43 less per gallon than in 2022, attributed to lower crude oil prices and increased gasoline inventories. By the final week of 2023, prices were nearly unchanged, rising just $0.02 per gallon compared to the last week of 2022.
Your bill isn’t based strictly on BTUs or Cubic Feet. You may also see some other items on your gas bill—such as taxes. Check with your local natural gas retailer for details to see what’s included in your bill.
If you live in Alaska or Maine, chances are you’ll be paying more for gas than the rest of us. Residents of New Mexico, Nevada, and Idaho, however, don’t pay nearly as much for their gas.
Statista (Oct 2022) & EIA.gov (Jan 2024)
The Average Internet Prices
How Does the Internet Work?
The way the internet works in the US is that you get to choose from a wide range of plans offered by Internet Service Providers (ISPs). The price also differs depending on the type of connection.
- DSL (5-45 Mbps)
- Cable (20-200 Mbps)
- Fiber-optic (50-1000 Mbps)
- Satellite (5 – 25 Mbps)
Slow dial-up connections cost as little as $29.95 per month, but the fastest fiber optic connections can cost up to $145 each month.
The number of U.S. households with permanent broadband internet access continues to grow, exceeding 125 million in 2021. The United States ranks among the largest online markets globally. These ISPs typically offer internet bundles with cable and phone services.
Average internet prices can vary from as little as $30 in Washington, DC to as much as $70 in Alaska. Of course, depending on the provider and plan you choose, rates may be even higher.
Here are some of the big names in the internet industry: AT&T Internet Services, Sparklight, Comcast High Speed Internet (also known as Xfinity), Lumen Technologies, Mediacom, Verizon, Spectrum, HughesNet and EarthLink.
Find Internet Providers in your state here
What Are the Factors Affecting the Cost of the Internet?
Here are the factors that affect the cost of internet in the US: location (urban or rural), service provider (ISPs), type of connection (DSL, cable, fiber-optic, or satellite), speed and bandwidth, state/city and date cap.
What Is the Average Cost of Internet Bills per Month?
According to NCTA, 85% of U.S. households have cable high-speed internet available.
States with the Highest Cable & Internet Bills
| State | Monthly Amount | Yearly Amount | % of Households w/ Bill |
| New Hampshire | $151 | $1,503 | 83% |
| Vermont | $134 | $1,159 | 72% |
| Delaware | $134 | $1,140 | 71% |
| Maryland | $131 | $990 | 63% |
| New York | $131 | $1,145 | 73% |
Biggest U.S. Cities With the Highest Cable & Internet Bills
| US City | Monthly Amount | Yearly Amount | % of Households w/ Bill |
| New York | $150 | $1,167 | 65% |
| San Diego | $147 | $1,466 | 83% |
| Louisville | $133 | $1,371 | 86% |
| San Antonio | $132 | $1,430 | 90% |
| San Francisco | $132 | $1,313 | 83% |
| Type of Internet | Mbps | Average Cost |
| DSL | All speeds up to 100 Mbps | $50.00/month |
| Cable | 150 Mbps/10 Mbps | $59.99/month |
| Fiber-optic | 940 Mbps/ 940 Mbps | $60.00/month |
| Satellite | 25 Mbps/ 3 Mbps
20 GB |
$69.99 |
Businesswire (July 2023), NCTA (Feb 2024) & Statistica (Jan 2024)
The Average Cost of Cable TV
How Does Cable TV Work?
In December 2023, estimates show 125 million TV households in the United States for the 2023-2024 TV season. Despite the increase in TV homes, pay TV is losing popularity, with a 64% penetration rate in 2023, marking a drop of over 10 percentage points in five years.
Yes, cable TV is slowly being replaced by streaming service and IPTV, but many households still prefer it because of the local channels.
You can watch basic channels for free using a digital antenna, but full cable subscriptions cost around $85 a month on average.
Many local cable TV operators are operating in the US, offering various packages, prices, and features. Typically, you are charged based on how many basic and exclusive channels you opt for.
Here are a few of them:Xfinity, Spectrum, Verizon, Optimum, Cox, DirectTV or Dish.
What Are the Factors Affecting the Cost of Cable?
Here are a few factors that affects the cost of cable: Area of service, External factors (local competition, downturn in the cable market, etc.), Local or state taxation and fee laws, Costs of shows and broadcasts, Cable prices, Number of channels, Type of channels (sports, international, local, news, entertainment, etc.), HD Channels and VOD (Video on Demand). availability
What Are Some Affordable Alternatives to Cable?
Here are a few affordable alternatives to cable: IPTV, Satellite TV, YouTube TV, Shaw TV, Netflix, Hulu, Disney+ and Xfinity’s Flex Streaming.
What Is the Average Cost of Cable TV per Month?
| Type of cable plan | Average Cost |
| TV Starter
Access to popular subscription apps like Netflix, Max, Hulu, Disney+, Paramount+, Peacock, Prime Video, discovery+ and iHeartRadio. Thousands of free movies and shows in apps like Pluto TV, YouTube, Tubi and Xumo The hottest blockbuster movies available On Demand Subscription entertainment On Demand, including movies, documentaries, and fitness 4K streaming box included Voice Remote included |
$50/month |
| TV Preferred
Access to popular subscription apps like Netflix, Max, Hulu, Disney+, Paramount+, Peacock, Prime Video, discovery+ and iHeartRadio. Thousands of free movies and shows in apps like Pluto TV, YouTube, Tubi and Xumo The hottest blockbuster movies available On Demand Subscription entertainment On Demand, including movies, documentaries, and fitness 4K streaming box included Voice Remote included |
$75/month |
| TV Preferred Plus
Access to popular subscription apps like Netflix, Max, Hulu, Disney+, Paramount+, Peacock, Prime Video, discovery+ and iHeartRadio. Thousands of free movies and shows in apps like Pluto TV, YouTube, Tubi and Xumo The hottest blockbuster movies available On Demand Subscription entertainment On Demand, including movies, documentaries, and fitness 4K streaming box included Voice Remote included |
$115/month |
| TV Ultimate
Popular cable channels like ESPN, HGTV, USA, TBS, Food Network and more Top broadcast networks like CBS, NBC, ABC, FOX, PBS, and CW 50 commercial-free Music Choice channels See here for the full 140+ channel lineup Easy access to popular subscription apps like Netflix, Prime Video, Hulu and Disney+ Thousands of free movies and shows in apps like Pluto TV, YouTube, Tubi and Xumo Award-winning Voice Remote included to find your entertainment faster One Contour box included Record 1 Starter DVR service included for 12 months Stream wherever, whenever with the Contour TV app |
$165/month |
Statistica (Dec 2023) & Cox (Feb 2024)
The Average Cost of Home Phones
How Do Home Phones Work?
Only 34 percent of US households have a landline because something better has come along — smartphones.
Home phones offer quick and reliable communication. Traditional copper landlines are self-powering, so they keep working even if the power goes out. Your landline is also associated with your exact address. In case of an emergency, EMTs know where you are.
Long-distance, your 911, voicemail, caller display, all those things are common on both cell phones and home phones.
Moreover, the home phone is directly linked to your exact address. In case of an emergency, 911 will know how to find you.
You can get landline services from the following providers in the US: AT&T, Century Link, Cox, Frontier or Spectrum.
What Are the Factors Affecting the Cost of Home Phones?
Home phones are still in the game, as they offer perks that a digital phone or VoIP cannot match. The added features decide how much the service provider is going to charge you. Here are some of the factors that affect the cost of home phones:
- Number of countries included in the plan
- Added taxes or fees
- Added features like (Long-distance calling, 3-way calling, caller ID block, online account management, etc.)
- Voicemail
- Call waiting
What Is the Average Cost of Home Phones per Month?
According to CostHelper, local calling plans cost $15-$30/month and local and long-distance plans cost $30-$45/month.
| Type of home phone plan | Average Cost |
| Traditional Home Phone
Primary residential phone number Unlimited local calling Reliable connection Optional long distance calling is also available. |
$48/month |
| Complete Choice® Enhanced
Primary residential phone number Up to 12 popular calling features including Caller ID, Call Forwarding, and Speed Dialing Optional unlimited long distance calling |
$62/month |
At&t (Feb 2024) & Costhelper (Feb 2024)
List of the 10 States with the Most Expensive Utilities
| State | Cost of Basic utilities
Per month |
% Difference from US average
Americans pay an average of $429.33 per month for their utility bills |
Most expensive utility in the state |
| Alaska | $569.64 | 33% | Natural Gas
$133.89 |
| Hawaii | $563.53 | 31% | Electricity
$177.78 |
| Connecticut | $532.71 | 24% | Electricity
$156.21 |
| West Virginia | $486.11 | 13% | Electricity
$129.61 |
| Georgia | $474.86 | 11% | Electricity
$134.11 |
| Ohio | $472.71 | 10% | Electricity
$112.21 |
| Indiana | $469.51 | 9% | Electricity
$126.51 |
| Kentucky | $464.67 | 8% | Electricity
$124.67 |
| Arizona | $460.85 | 7% | Electricity
$131.35 |
| Florida | $458.40 | 7% | Electricity
$130.40 |
List of the 10 States with the Most Expensive Utilities
| State | Cost of Basic utilities
Per month |
% Difference from US average
Americans pay an average of $429.33 per month for their utility bills |
Most expensive utility in the state |
| Alaska | $569.64 | 33% | Natural Gas
$133.89 |
| Hawaii | $563.53 | 31% | Electricity
$177.78 |
| Connecticut | $532.71 | 24% | Electricity
$156.21 |
| West Virginia | $486.11 | 13% | Electricity
$129.61 |
| Georgia | $474.86 | 11% | Electricity
$134.11 |
| Ohio | $472.71 | 10% | Electricity
$112.21 |
| Indiana | $469.51 | 9% | Electricity
$126.51 |
| Kentucky | $464.67 | 8% | Electricity
$124.67 |
| Arizona | $460.85 | 7% | Electricity
$131.35 |
| Florida | $458.40 | 7% | Electricity
$130.40 |
List Of The 10 States With the least Expensive Utilities
| State | Cost of utilities
Per month |
% Difference from US average
Americans pay an average of $429.33 per month for their utility bills |
Most expensive utility in the state |
| Utah | $345.62 | -20% | Phone Bill
$114 |
| New Mexico | $362.81 | -15% | Phone Bill
$114 |
| Idaho | $367.87 | -14% | Phone Bill
$114 |
| Colorado | $371.96 | -13% | Phone Bill
$114 |
| Nevada | $376.67 | -12% | Phone Bill
$114 |
| Montana | $379.34 | -12% | Phone Bill
$114 |
| Nebraska | $379.34 | -12% | Phone Bill
$114 |
| Minnesota | $380.76 | -11% | Phone Bill
$114 |
| Louisiana | $389.62 | -9% | Electricity
$131.37 |
| Wisconsin | $395.68 | -8% | Phone Bill
$114 |
Conclusion
The USA is a big country — some states have a much higher average cost of utility for a house, and some are more affordable. Utilities ensure that your household functions properly and remains comfortable, but the cost is recurring and variable. Knowing average household utility costs can help you reduce your usage and save tons of money at the end of the year.
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