Idaho leads nation with lowest residential electrical rates

It’s another electrifying reason Idaho remains a desirable destination for new residents.

Residential costs for electricity in the Gem State are ranked the best across all 50 states, based on a new power industry report using data from the U.S. Energy Information Administration.

As of May this year, Idaho averaged 12.35 cents per kilowatt-hour, one-third less than national average of 18.44 cents per kWh, which now registers  25% higher than it did in 2022 when it stood at 15.04. Last year’s national average peaked at 17.30 cents.

Abundant hydropower and low wholesale costs are considered the main factors boosting Idaho’s rate to the top spot in the nation, and far below the 52 cents per kWh Hawaii residents pay, the highest rate at nearly three times the national average.

California (33.25) and New York (29.23) were next in line as the two costliest states for residential electrical services. Seven additional states surpassed the 20 cents per kWh rate. Overall, six of the 10 most expensive states are located in the Northeast.

Comparing some of the largest and most populous states, New York energy rates were found to be nearly double that of Florida and 80% higher than Texas, according to the Empire Center for Public Policy. The group also found prices New Yorkers pay for electricity shot up 12% over last year, twice the rate of increase for the national average.

Six states closely follow Idaho for best overall rates with Utah the only other state (12.96) to come in below 13 cents on average. The other five states ― Oklahoma (13.38), Nebraska (13.59), Nevada (13.6), North Dakota (13.61) and Missouri (13.68) ― were all under 14 cents.

Nine states landed in the 14-cent range led by New Mexico at 14.12 cents per kWh. Also falling below 15 cents were Iowa (14.14), Louisiana (14.15), Arkansas (14.36), Tennessee (14.47), Montana (14.67), Wyoming (14.8), Washington (14.95) and Kentucky (14.98).

Five states averaged just over 15 cents. These include Kansas (15.13), Florida (15.17), Arizona (15.23), South Dakota (15.73) and Georgia hitting (15.84).

Eight states ranged above 16 cents but below 20, including South Carolina (16.18), Oregon (16.27), Texas (16.44), Alabama (16.77), Minnesota (16.95), Virginia (17.61), Ohio (19.52), and Wisconsin (19.74).

Others that exceeded 20 cents, qualifying them as some of the most costliest nationwide, were Maine (28.63), Alaska (28.23), New Jersey (27.37), Illinois (23.85), Michigan (22.01), Maryland (21.77) and Pennsylvania (21.55).