Residential electricity price growth in the U.S. 2000-2023

It is projected that the residential electricity price in the United States will increase by 2.5 percent between 2022 and 2023. Generally, retail electricity prices in the country have risen over the last decade. This trend is likely to continue as natural gas prices will likely also increase, raising electricity rates. As the natural gas supply is exposed to international markets that pay a higher rate, U.S. prices are also expected to rise despite a decrease in recent years that came as a result of the hydraulic fracturing boom.

States with the highest and lowest electricity prices

The price of electricity is partially dependent on the various energy sources, such as coal, gas, oil, as well as renewable or nuclear sources, used to generate power. Hawaii has one of the highest electricity prices at 39.97 U.S. cents per kilowatt-hour, due to the high costs of crude oil used to fuel the state’s electricity. In comparison, Idaho has one of the lowest retail rates, as much of the state’s energy is generated from hydroelectricity which requires virtually no fuel and construction costs can be spread out over decades. Bills can vary greatly depending on both state and region. Demand for electricity is also expected to increase, especially in regions that will likely require more heating and cooling as climate change impacts progress, driving up electricity prices.