Commercial Electricity Rates by State (2026): Average ¢/kWh Data & Trends
The average U.S. commercial electricity rate hit 13.51¢/kWh in 2026. See current commercial ¢/kWh rates for all 50 states, why business rates differ from residential, and how deregulated-market shopping helps you beat your state average.
Last updated: 2026-07-18
The average price a U.S. business paid for electricity reached 13.51 cents per kilowatt-hour (¢/kWh) in April 2026 — up roughly 4.8% from a year earlier, according to the U.S. Energy Information Administration's Electric Power Monthly. But that national number hides an enormous range: a commercial customer in North Dakota pays about 7.05¢/kWh, while one in California pays 25.75¢ and one in Hawaii pays nearly 43¢. Where your facility sits on that map — and whether your state lets you shop for a competitive supplier — is one of the largest controllable line items on your operating budget.
This guide publishes the current EIA commercial electricity rate for every U.S. state, explains why commercial rates diverge so sharply from residential rates, and shows how businesses in deregulated markets use supplier competition to lock in prices below their utility's default rate. We update this page as EIA releases new monthly data.
Commercial Electricity Rates by State (2026)
The table below shows the average commercial-sector electricity price by state from the EIA Electric Power Monthly, Table 5.6.A, for April 2026 — the most recent complete state-level dataset. "Commercial" here means businesses, offices, retail, schools, hospitals, and other non-industrial, non-residential accounts. Rates are the effective all-in average (supply plus delivery) and represent a proxy for what a typical business pays.
| State | Commercial ¢/kWh | Market |
|---|---|---|
| Hawaii | 42.99 | Regulated |
| California | 25.75 | Regulated |
| Massachusetts | 24.02 | Deregulated |
| Connecticut | 23.56 | Deregulated |
| Maine | 23.27 | Deregulated |
| District of Columbia | 23.26 | Deregulated |
| Rhode Island | 22.31 | Deregulated |
| Alaska | 22.74 | Regulated |
| New York | 21.88 | Deregulated |
| Vermont | 20.92 | Regulated |
| New Hampshire | 20.55 | Deregulated |
| New Jersey | 16.77 | Deregulated |
| Maryland | 16.41 | Deregulated |
| Michigan | 15.55 | Deregulated |
| Alabama | 14.44 | Regulated |
| Mississippi | 14.12 | Regulated |
| Tennessee | 14.07 | Regulated |
| Illinois | 13.89 | Deregulated |
| Indiana | 13.78 | Deregulated |
| Pennsylvania | 13.68 | Deregulated |
| Ohio | 13.65 | Deregulated |
| Wisconsin | 13.38 | Regulated |
| Delaware | 13.31 | Deregulated |
| Kentucky | 13.07 | Regulated |
| Colorado | 12.92 | Regulated |
| Montana | 12.66 | Regulated |
| Minnesota | 12.49 | Regulated |
| Louisiana | 12.31 | Regulated |
| Florida | 11.56 | Regulated |
| West Virginia | 11.63 | Regulated |
| South Carolina | 11.61 | Regulated |
| Arizona | 11.49 | Regulated |
| South Dakota | 11.47 | Regulated |
| Kansas | 11.39 | Regulated |
| New Mexico | 11.08 | Regulated |
| Arkansas | 11.04 | Regulated |
| Washington | 11.74 | Regulated |
| Oregon | 10.62 | Regulated |
| Georgia | 10.56 | Deregulated (gas primarily) |
| Missouri | 10.49 | Regulated |
| North Carolina | 10.39 | Regulated |
| Virginia | 10.33 | Deregulated (limited) |
| Iowa | 10.26 | Regulated |
| Utah | 10.24 | Regulated |
| Idaho | 9.87 | Regulated |
| Wyoming | 9.50 | Regulated |
| Nevada | 8.99 | Regulated |
| Texas | 8.35 | Deregulated |
| Nebraska | 8.25 | Regulated |
| Oklahoma | 7.77 | Regulated |
| North Dakota | 7.05 | Regulated |
Source: U.S. Energy Information Administration, Electric Power Monthly, Table 5.6.A (April 2026 data, released June 2026). "Market" reflects whether the state offers commercial retail electricity choice.
The 3 Cheapest and 3 Most Expensive States for Business Electricity
Lowest commercial rates: North Dakota (7.05¢), Oklahoma (7.77¢), and Nebraska (8.25¢) anchor the bottom of the table. These are low-cost states with abundant local generation — hydro, wind, coal, and gas — low population density, and short transmission distances. Texas, at 8.35¢, is remarkable because it is the only deep-discount state that is also fully deregulated: businesses there both start from a low baseline and get to shop.
Highest commercial rates: Hawaii (42.99¢) is an island grid dependent on imported oil and is in a category of its own. On the mainland, California (25.75¢) leads, followed by a cluster of New England and Northeastern states — Massachusetts (24.02¢), Connecticut (23.56¢), Maine (23.27¢), and Washington, D.C. (23.26¢). New England's high rates stem from winter natural gas pipeline constraints, limited in-region generation, and heavy transmission and policy costs.
The takeaway for a multi-site business: a facility in Massachusetts can pay nearly three times per kilowatt-hour what an identical facility in Texas pays. Energy budgeting, site-selection, and procurement priorities should be weighted accordingly.
Why Commercial Rates Differ From Residential Rates
Business owners often benchmark against the residential rates they see in the news, but commercial electricity is priced differently:
- Lower per-kWh energy charges, higher demand charges. Commercial customers typically pay a lower commodity rate than residential customers but face demand charges — a separate fee based on your peak 15- or 30-minute demand (in $/kW) that can represent 30–50% of a commercial bill. The ¢/kWh averages above blend energy and demand into a single effective rate. Use our commercial demand charge calculator to estimate how much of your bill is demand-driven.
- Rate class matters. Utilities assign businesses to rate classes by size and load profile (small commercial, large commercial, industrial). Two businesses in the same building can pay different effective rates. See electricity rate classes explained.
- Delivery vs. supply. In deregulated states, the ¢/kWh you control through a supplier contract is only the supply portion; delivery (poles, wires, the utility) is regulated and non-negotiable. See delivery vs. supply charges.
Why 2026 Rates Are Rising
Commercial electricity prices climbed roughly 4.8% year-over-year through spring 2026, outpacing general inflation. Three structural forces are driving the increase:
- Capacity costs. In the PJM region (which covers PA, NJ, OH, MD, VA, IL, DC and more), the 2027/2028 capacity auction cleared at the price cap of $333.44/MW-day — up from $329.17 the prior year and a multiple of historical levels. These costs flow through to commercial bills as capacity charges. See our PJM capacity auction analysis.
- Data center demand. AI and hyperscale data center load is tightening regional supply-demand balances, especially in Virginia, Texas, Ohio, and Illinois. See how AI data centers drive commercial electricity prices.
- Delivery rate cases. Utilities are filing to recover grid-hardening and transmission investment, raising the regulated delivery side that even the best supply contract can't touch.
For a full breakdown of what's on your invoice, read why did my commercial electric bill go up in 2026.
How to Beat Your State's Average Rate
The state averages above are just that — averages. In the 18 deregulated states (plus D.C.), a well-run procurement process routinely secures supply rates below the utility's default "price to compare." Here's how businesses do it:
- Shop the supply portion. Solicit competitive fixed-rate offers from multiple licensed suppliers rather than defaulting to the utility. See comparing electricity supplier offers.
- Time your lock. Forward power prices move daily. Locking during shoulder months (spring/fall) and avoiding summer/winter peaks can save materially. See best time to lock in electricity rates.
- Choose the right term. A 24- or 36-month fixed contract trades a slightly higher rate for budget certainty against rising capacity costs. See choosing electricity contract length.
- Aggregate multi-site load. National accounts can pool volume for better pricing. See electricity aggregation for multi-site businesses.
For a step-by-step walkthrough, see switching electricity suppliers step by step, or explore the deregulated-state guides for Texas, Pennsylvania, Illinois, Ohio, New York, and New Jersey.
Frequently Asked Questions
What is the average commercial electricity rate in the U.S. in 2026? About 13.51¢/kWh as of April 2026, per EIA — up roughly 4.8% year-over-year. Individual state averages range from about 7¢ (North Dakota) to nearly 43¢ (Hawaii).
Which state has the cheapest commercial electricity? Among the 50 states, North Dakota (7.05¢), Oklahoma (7.77¢), and Nebraska (8.25¢) are lowest. Texas (8.35¢) is the lowest-cost deregulated state, meaning businesses there also get to shop for competitive supply.
Why is my commercial rate higher than these averages? State averages blend all business sizes and rate classes. Your effective rate depends on your load profile, demand charges, rate class, utility territory, and — in deregulated states — whether you're on the utility default rate or a competitive supply contract. A supplier RFP is the fastest way to find out if you're overpaying.
Do deregulated states have lower rates? Not automatically — deregulation is about choice, not guaranteed savings. New England's deregulated states are among the most expensive because of underlying supply constraints. The value of deregulation is the ability to competitively shop the supply portion and lock in against rising costs.
Ready to see how your rate compares to what a competitive supplier can offer? Get a free commercial rate review or call 833-264-7776.
Sources: U.S. Energy Information Administration, Electric Power Monthly Table 5.6.A (April 2026); PJM Interconnection 2027/2028 Base Residual Auction results (December 2025).
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