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 South Dakota was 15.15¢ per kilowatt-hour (kWh), 17% lower than the US average of 18.16¢. That makes South Dakota the 35th most expensive of the 50 states and DC. Prices rose 9.0% from August 2025 (13.90¢).
| Year | Avg rate | Avg monthly bill | Avg monthly use |
|---|---|---|---|
| 2026 (8 mo) | 14.58¢ | $148 | 1,018 kWh |
| 2025 | 13.32¢ | $131 | 984 kWh |
| 2024 | 12.86¢ | $128 | 994 kWh |
| 2023 | 12.32¢ | $126 | 1,025 kWh |
| 2022 | 12.09¢ | $128 | 1,058 kWh |
| 2021 | 12.22¢ | $125 | 1,019 kWh |
| 2020 | 11.75¢ | $122 | 1,037 kWh |
| 2019 | 11.55¢ | $121 | 1,044 kWh |
| 2018 | 11.59¢ | $121 | 1,045 kWh |
| 2017 | 11.77¢ | $115 | 978 kWh |
Rates are weighted by kWh sold. Bills and usage are averages per residential customer.
| Sector | Rate | A year earlier |
|---|---|---|
| Residential | 15.15¢ | 13.90¢ |
| Commercial | 11.71¢ | 10.64¢ |
| Industrial | 9.43¢ | 8.67¢ |
| Transportation | 0.00¢ | 0.00¢ |
| All sectors | 12.42¢ | 11.38¢ |
At South Dakota's 12-month average residential rate of 14.28¢ 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 | South Dakota | US average |
|---|---|---|
| 250 kWh | $35.70 | $45.40 |
| 500 kWh | $71.40 | $90.80 |
| 750 kWh | $107.10 | $136.20 |
| 1,000 kWh | $142.80 | $181.60 |
| 1,500 kWh | $214.20 | $272.40 |
| 2,000 kWh | $285.60 | $363.20 |
Over the last 12 months, the average residential rate ranged from 12.43¢ (December 2025) to 15.73¢ (May 2026), and homes used the most electricity in January 2026 (1,269 kWh on average).
| Month | Avg rate | Avg bill | Avg use |
|---|---|---|---|
| August 2026 | 15.15¢ | $160 | 1,057 kWh |
| July 2026 | 15.37¢ | $176 | 1,146 kWh |
| June 2026 | 15.36¢ | $133 | 868 kWh |
| May 2026 | 15.73¢ | $127 | 805 kWh |
| April 2026 | 14.52¢ | $129 | 885 kWh |
| March 2026 | 14.28¢ | $144 | 1,006 kWh |
| February 2026 | 13.22¢ | $147 | 1,113 kWh |
| January 2026 | 13.58¢ | $172 | 1,269 kWh |
| December 2025 | 12.43¢ | $143 | 1,150 kWh |
| November 2025 | 13.74¢ | $118 | 860 kWh |
| October 2025 | 14.01¢ | $112 | 798 kWh |
| September 2025 | 14.68¢ | $123 | 836 kWh |
South Dakota's 12-month average rate is higher than 5 of its 6 neighbors.
| State | 12-mo avg rate | Avg monthly bill | Rank |
|---|---|---|---|
| South Dakota | 14.28¢ | $140 | #36 |
| Iowa | 14.20¢ | $120 | #37 |
| Minnesota | 16.28¢ | $121 | #25 |
| Montana | 13.94¢ | $115 | #42 |
| Nebraska | 12.74¢ | $122 | #50 |
| North Dakota | 12.35¢ | $133 | #51 |
| Wyoming | 14.01¢ | $114 | #39 |
| Appliance | Typical wattage | Cost per hour |
|---|---|---|
| Space heater | 750–1,500 W | $0.11–$0.21 |
| Refrigerator | 725 W | $0.10 |
| Clothes dryer | 1,800–5,000 W | $0.26–$0.71 |
| Washing machine | 350–500 W | $0.05–$0.07 |
| Dishwasher | 1,200–2,400 W | $0.17–$0.34 |
| Electric water heater | 4,500–5,500 W | $0.64–$0.79 |
| Microwave | 750–1,100 W | $0.11–$0.16 |
| Window fan | 55–250 W | $0.01–$0.04 |
All appliance costs · Appliance cost calculator for South Dakota
In South Dakota, 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 South Dakota was 15.15¢ per kWh in August 2026. Over the past 12 months it averaged 14.28¢ per kWh.
The average residential customer in South Dakota paid $160 for 1,057 kWh in August 2026, based on EIA revenue, sales and customer counts.
In August 2026, South Dakota's average rate of 15.15¢ was 17% lower than the US average of 18.16¢.
Generally no. Most South Dakota 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.