Residential Electricity Costs by U.S. State: Generation Sources and Availability, Clean Energy Goals, Consumption, and Policies are All Factors: And CO2 Emissions Per Capita by State

Residential Electricity Prices by State

     Salt Lake Tribune has a great article celebrating the state of Utah as the state with the cheapest residential electricity prices. Utahns pay 11.33 cents per kW, about one-third less than the average U.S. residential electricity price of 16.48 cents per kW.

     The state’s investment in relatively cheaper electricity sources like coal, natural gas, and solar has helped keep residential costs lower, even as Utahns are using more electricity than ever. The article points out that Utah benefits from having a high amount of fossil fuels, such as coal and natural gas, on the grid. However, the low prices are also supported by a growing amount of low-cost solar generation. Utah is a state with good solar radiation resources. Natural gas and solar have replaced coal generation since 2000, as shown below. 

     Solar is responsible for over 29% of the replacement of coal generation, and natural gas is responsible for about 67% of the replacement. Utah is 19^th among the 50 states in CO2 emissions per capita. In 2024, Utah decided to delay planned retirements of more coal plants, delaying a further drop in CO2 emissions but keeping costs cheap and power reliable. The state’s coal production has dropped due to mines being shut down, possibly permanently, but they import coal from nearby states. Increasing oil production in the Uinta Basin in Northeast Utah has associated natural gas, the production of which is also increasing, and which is helping natural gas to power more gas-fired plants and increase its share on the grid. While the state may import coal, it exports power, having generation to spare.

     Hawaii has the highest electricity costs of all the states. It is an island state powered mainly by fuel oil, along with natural gas, coal, and solar. The state could really benefit from some more LNG, and like Puerto Rico, they could also benefit from a repeal of Section 37 of the outdated 1920s Jones Act that requires American-crewed ships to deliver LNG from one place to another in the U.S. Instead, they must buy it from foreign sources at higher costs. Other states with high electricity costs, like California and several Northeastern states, have high costs due to clean energy policies. The Northeastern states are affected by a lack of natural gas infrastructure to deliver low-cost natural gas and have not kept up with building natural gas power plants. Instead, they have relied on Canadian electricity imports. These states were planning on a surge of offshore wind power that is not likely to deliver as much power as expected. High project costs have been a major issue. The Trump administration has also paused offshore wind and stopped some projects.

     The highest residential power price increases in 2024 over 2023 occurred in Wyoming, West Virginia, D.C., Kansas, North Carolina, Oregon, Connecticut, and Rhode Island. The biggest drops in power prices occurred in Nevada and Florida.

     An article by Quick Electricity explores power prices as well as the differences in power prices among regulated and deregulated states. Currently, 18 states are deregulated. They note:

“As of September 2024, the average cost of electricity was 21.05 cents/kWh in deregulated states and 15.59 cents/kWh in regulated states. This can give the impression that deregulation makes electricity more expensive, but researchers from Cornell University have reached the opposite conclusion:

·      Electricity prices were already higher in many states that adopted deregulation. In other words, expensive electricity has been a reason to deregulate, not a consequence.

·      In recent years, the price volatility of natural gas has been the main cause of electricity price fluctuations in the US.

·      The transition from a regulated to a deregulated power sector comes with many costs, and price reductions do not occur immediately.

·      Not all states have the same resources, and this affects electricity prices. States with abundant hydropower or coal-fired generation can achieve lower electricity prices.

 

Source: Quick Electricity

Per Capita CO Emissions by State

     The coal-heavy states, Wyoming, North Dakota, and West Virginia, have the highest CO2 emissions per capita. Other coal-heavy states are up there as well, including Indiana, Kentucky, and Montana. States with lots of refineries and petrochemical plants, like Louisiana and Texas, also have high emissions per capita.  

     States with large urban populations benefit from power efficiency, which drops their emissions per capita. Low-carbon power sources also help in some of these states, such as New York, California, and Massachusetts. States with lots of nuclear power have lower per capita emissions. States with lots of hydroelectric power, such as Washington and Oregon, have lower per capita emissions.

    The U.S. as a whole has been lowering per capita carbon emissions since the early 70s and steadily since around 1998, as shown below.

U.S. CO2 Emissions Per Capita

Source: Statista

References:

 

Utahns pay the lowest rates in U.S. for electricity, even as one of the state’s biggest, dirtiest power sources declines. Anastasia Hufham. The Salt Lake Tribune. May 2, 2025. Utah energy: Electricity prices lowest in the nation, despite coal’s decline

Costs of Electricity by State 2024 vs. 2023. Kelli. Quick Electricity. January 8, 2025. Cost of Electricity by State, Electric Rates by State

U.S. States Ranked by Carbon Dioxide Emissions. Solar Power Insights. U.S. States Ranked by Carbon Dioxide Emissions per Capita - Solar Power Guide - Infographic