Why Electricity Prices Differ So Much by State
Electricity costs several times more per kWh in some states than others. EIA data shows how fuel mix, grid costs, regulation and climate drive the gap.
Updated with EIA data for August 2026
In August 2026, the average residential electricity rate in Alaska was 29.41¢ per kilowatt-hour (kWh), 62% higher than the US average of 18.16¢. That makes Alaska the 5th most expensive of the 50 states and DC. Prices rose 5.8% from August 2025 (27.79¢).
| Year | Avg rate | Avg monthly bill | Avg monthly use |
|---|---|---|---|
| 2026 (8 mo) | 27.32¢ | $161 | 589 kWh |
| 2025 | 26.11¢ | $147 | 564 kWh |
| 2024 | 24.82¢ | $144 | 578 kWh |
| 2023 | 23.90¢ | $138 | 577 kWh |
| 2022 | 23.10¢ | $134 | 580 kWh |
| 2021 | 22.55¢ | $134 | 594 kWh |
| 2020 | 22.57¢ | $125 | 552 kWh |
| 2019 | 22.92¢ | $127 | 555 kWh |
| 2018 | 21.94¢ | $126 | 572 kWh |
| 2017 | 21.27¢ | $128 | 601 kWh |
Rates are weighted by kWh sold. Bills and usage are averages per residential customer.
| Sector | Rate | A year earlier |
|---|---|---|
| Residential | 29.41¢ | 27.79¢ |
| Commercial | 23.90¢ | 23.09¢ |
| Industrial | 23.13¢ | 20.49¢ |
| Transportation | 0.00¢ | 0.00¢ |
| All sectors | 25.32¢ | 23.88¢ |
At Alaska's 12-month average residential rate of 26.94¢ per kWh, here is the energy cost for common monthly usage levels, next to the US average. Fixed customer charges, taxes and fees vary by utility and are not included.
| Monthly use | Alaska | US average |
|---|---|---|
| 250 kWh | $67.35 | $45.40 |
| 500 kWh | $134.70 | $90.80 |
| 750 kWh | $202.05 | $136.20 |
| 1,000 kWh | $269.40 | $181.60 |
| 1,500 kWh | $404.10 | $272.40 |
| 2,000 kWh | $538.80 | $363.20 |
Over the last 12 months, the average residential rate ranged from 25.44¢ (January 2026) to 29.41¢ (August 2026), and homes used the most electricity in January 2026 (828 kWh on average).
| Month | Avg rate | Avg bill | Avg use |
|---|---|---|---|
| August 2026 | 29.41¢ | $139 | 473 kWh |
| July 2026 | 28.83¢ | $141 | 490 kWh |
| June 2026 | 28.21¢ | $129 | 458 kWh |
| May 2026 | 28.19¢ | $143 | 507 kWh |
| April 2026 | 27.35¢ | $162 | 592 kWh |
| March 2026 | 27.16¢ | $193 | 712 kWh |
| February 2026 | 25.86¢ | $168 | 650 kWh |
| January 2026 | 25.44¢ | $211 | 828 kWh |
| December 2025 | 25.54¢ | $195 | 765 kWh |
| November 2025 | 25.94¢ | $156 | 600 kWh |
| October 2025 | 26.50¢ | $138 | 520 kWh |
| September 2025 | 27.22¢ | $126 | 464 kWh |
| Appliance | Typical wattage | Cost per hour |
|---|---|---|
| Space heater | 750–1,500 W | $0.20–$0.40 |
| Refrigerator | 725 W | $0.20 |
| Clothes dryer | 1,800–5,000 W | $0.48–$1.35 |
| Washing machine | 350–500 W | $0.09–$0.13 |
| Dishwasher | 1,200–2,400 W | $0.32–$0.65 |
| Electric water heater | 4,500–5,500 W | $1.21–$1.48 |
| Microwave | 750–1,100 W | $0.20–$0.30 |
| Window fan | 55–250 W | $0.01–$0.07 |
All appliance costs · Appliance cost calculator for Alaska
In Alaska, most households buy electricity from their local utility at regulated rates, so shopping for a different supplier is usually not an option. The best ways to lower your bill are to reduce usage and check whether your utility offers time-of-use or other rate plans.
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The average residential electricity rate in Alaska was 29.41¢ per kWh in August 2026. Over the past 12 months it averaged 26.94¢ per kWh.
The average residential customer in Alaska paid $139 for 473 kWh in August 2026, based on EIA revenue, sales and customer counts.
In August 2026, Alaska's average rate of 29.41¢ was 62% higher than the US average of 18.16¢.
Generally no. Most Alaska households buy electricity from their local utility at regulated rates.
Source: U.S. Energy Information Administration (EIA), Form EIA-861M monthly sales and revenue data. Latest month: August 2026. Recent months may be preliminary and revised by EIA. See how we calculate.