Published
April 15, 2024
Electricity is an indispensable commodity that keeps our homes and businesses running. Since we cannot live without it, the price we pay for electricity matters to everyone.
As we move to electrify additional facets of our lives, increasing rates will have a bigger effect on our wallets. The Chamber annually tracks electricity prices using the most recent government data available through our Electricity Price Map.
The details: Maine, Rhode Island, California, Connecticut, and Nevada experienced the biggest year-over-year increases in price across 2023, with Maine’s electricity users paying 20% more for electricity as compared to 2022. Nevada also experienced a sizeable 19% jump in electricity prices. Louisiana, Hawaii, Oklahoma, Georgia, and North Dakota benefitted from moderate declines in electricity rates, though the 1.02 cents per kWh drop in the Aloha State doesn’t take away the sting of their perpetually highest electricity rate. Other than Hawaii, California and several Northeastern states continue to have the highest electricity prices, with aggressive annual increases that are impacting consumers.
The big picture: While 17 states, primarily across the middle of the country, benefitted from electricity rate reductions, 33 states and the District of Columbia all saw higher rates in 2023. The result is an average .36 cent per kWh increase in electricity rates on a national basis. Often, areas with the highest rates also have regulatory and permitting challenges that limit available resources and constrain electricity supply.
The bottom line: Upward pressures on electricity prices are likely to continue thanks to increasing demand, plant retirements driven by aggressive regulations, and ongoing difficulty building transmission capacity, pipelines, and other supporting infrastructure.
About the authors
Heath Knakmuhs
Knakmuhs studies, develops, and communicates strategic energy policies and initiatives with a focus on the electric power sector. He also examines the impact of regulatory action, market-based factors, and emerging threats on the American electric grid.
