# The Average Electricity Bill In Each State

## Introduction – Average Electricity Bill

In this analysis, we examine the average residential electricity bills by state in the United States for the year 2021. The data used in this analysis was sourced from the U.S. Energy Information Administration (EIA) here.

The figures were calculated by dividing the total annual revenue from residential electricity sales in each state by the total number of residential customers, resulting in the average annual electricity cost per customer. The average electricity bill was then obtained by dividing the annual cost by twelve.

## Table Of Average Electricity Bill And Annual Cost

Below is the average electricity bill in each state. Go to the row of the state and look at the two costs to the right. The first is the average electricity bill, which is given for each month. The second is the average annual cost, which is the total over the 12 bills.

## Observations – Average Electricity Bill In Each State

The analysis revealed a wide range of average electricity bills across the states. Hawaii (HI) had the highest average annual annual cost at \$2,133.34, while Utah (UT) had the lowest at \$970.48. The average monthly bill in Hawaii was \$177.78, and in Utah, it was \$80.87. The national average for the United States was \$1,452.07 per year, or \$121.01 per month.

These variations can be attributed to a variety of factors, including differences in electricity prices, climate, and residential energy use patterns among the states. For instance, states with hot climates like Hawaii may have higher electricity bills due to increased use of air conditioning. On the other hand, states with abundant renewable energy resources like Utah may have lower electricity prices, leading to lower bills.

## Caveats

While this analysis provides a general picture of electricity costs for residential customers across the U.S., there are several factors to consider when interpreting the results.

Firstly, the average electricity bill does not directly represent the cost per kilowatt-hour (kWh) of electricity. States with lower average bills do not necessarily have lower electricity prices. For instance, a state with high electricity prices but efficient energy use could have lower average bills than a state with low electricity prices but inefficient energy use.

Secondly, these figures represent the average bills, which may not accurately represent the distribution of electricity costs within each state. Factors such as income, home size, and energy efficiency can significantly affect individual electricity bills.

Finally, it’s worth noting that this analysis is based on the total revenues from residential electricity sales, which may include various fees and surcharges in addition to the cost of electricity per kWh. One major charge that makes upwards 50% of the bill is the delivery charge. Therefore, these figures may not directly reflect the cost of electricity alone.

## Detailed Process

The dataset from the EIA included annual electricity sales and revenues data for each state in the U.S. from 1990 to 2021. For this analysis, we focused on the most recent year available, 2021.

The average annual electricity cost per residential customer in each state was calculated by dividing the total residential electricity revenues by the total number of residential customers. To convert the revenues from thousand dollars to dollars, we multiplied the revenues by 1,000.

We also calculated the average monthly electricity bill by dividing the annual cost by 12.

## Conclusion

This analysis provides a snapshot of the average residential electricity bills in each U.S. state in 2021. While it shows the variations in electricity costs across the country, it’s important to consider the various factors that can affect these costs.

Further analysis could explore these factors in more detail, providing deeper insights into residential electricity use and costs in the U.S.

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