In the year 2023, residential electricity bills in the United States saw a slight uptick, with a monthly increase of 2% compared to the previous year, according to recent data. This growth rate, however, lagged behind the inflation rate, which stood at 4.1% in 2023. Over the past decade, residential electricity prices have shown a trend of increasing at a slower pace than overall inflation.
In nominal terms, without adjusting for inflation, the average monthly electricity bill for residential customers in the United States in 2023 amounted to $138, marking a rise from $135 in 2022. This 2% increase mirrored the average annual increase of 2% observed over the past decade. The data for 2023 are preliminary and are based on a sample of utilities, whereas the data from 2013 to 2022 are finalized, derived from a more comprehensive collection of utility data. Across individual states, average monthly residential electricity bills varied, ranging from a low of $87 in Utah to a high of $213 in Hawaii.
Two primary factors influence monthly electricity bills: electricity prices and the amount of grid-delivered electricity consumed by customers. Rather than directly surveying electricity prices or bills, estimates are made by dividing the revenue from residential customers by their electricity consumption.
On average, the increase in electricity prices was offset by a decline in consumption in 2023. The average residential electricity price in the U.S. rose by 6.2%, climbing from 15.04 cents per kilowatt-hour (kWh) in 2022 to 15.98 cents/kWh in 2023. Monthly electricity consumption per residential customer averaged 861 kWh in 2023, slightly lower than the 899 kWh observed in 2022, contributing to the average bill rising less than the inflation rate.
Hawaii registered the highest average monthly bills in 2023 at $213. This is attributed to the high cost of petroleum-fired electricity generation and the island’s lack of connection to another electricity grid. Despite the high prices, electricity consumption in Hawaii remains among the lowest in the U.S.
On the other end of the spectrum, Utah residents experienced the lowest average monthly bills, paying $87 per month for electricity in 2023. Similarly, consumers in other southwestern states like New Mexico and Colorado also had bills significantly below the national average. These states typically benefit from lower-than-average residential electricity prices and consumption, with delivered costs for coal and natural gas to power plants being lower compared to 2022.
Louisiana stood out with consumers using over four times the electricity compared to Hawaii on average. However, due to considerably lower electricity prices in Louisiana, residents paid $142 per month, 33% less than those in Hawaii and just above the national average. Southern states like Florida, Alabama, and Texas also tend to have lower electricity prices but higher consumption, often due to increased usage of air conditioning and electric space-heating equipment during winter months.