Where you live determines how much you pay for utilities—sometimes dramatically. A household in Hawaii pays $360/month for electricity, while a household in Louisiana pays just $84. A family in Massachusetts spends $75/month on water, while a family in Wisconsin spends $35.
This 2026 Utility Cost Index ranks all 50 states by average monthly utility costs (electricity, gas, and water combined), using original analysis of EIA data, state utility commission reports, and census data.
Key finding: The average US household spends $262/month on utilities, but state-by-state variation is enormous—from $185/month (Utah) to $395/month (Hawaii).
Table of Contents
- 2026 Utility Cost Rankings: All 50 States
- Regional Breakdowns
- Why Utility Costs Vary by State
- Electricity Costs: State-by-State Analysis
- Gas Costs: State-by-State Analysis
- Water Costs: State-by-State Analysis
- Year-over-Year Changes: 2025 vs 2026
- Methodology
- Frequently Asked Questions
2026 Utility Cost Rankings: All 50 States
This table ranks all 50 states by total average monthly utility cost (electricity + gas + water), based on a typical household using:
- 900 kWh/month electricity (national average)
- 70 therms/month gas (winter-weighted average)
- 5,000 gallons/month water (national average)
| Rank | State | Electric | Gas | Water | Total Monthly Cost | |
|---|---|---|---|---|---|---|
| 1 | Hawaii | $295 | $85 | $15 | $395 | 🏴 |
| 2 | Massachusetts | $198 | $125 | $72 | $395 | 🏴 |
| 3 | Connecticut | $185 | $125 | $68 | $378 | |
| 4 | Rhode Island | $180 | $118 | $65 | $363 | |
| 5 | California | $201 | $85 | $55 | $341 | 🌴 |
| 6 | New York | $165 | $115 | $60 | $340 | 🗽 |
| 7 | New Hampshire | $155 | $120 | $62 | $337 | |
| 8 | Vermont | $150 | $125 | $58 | $333 | |
| 9 | Alaska | $175 | $95 | $52 | $322 | ❄️ |
| 10 | Maryland | $148 | $95 | $65 | $308 | |
| 11 | New Jersey | $145 | $105 | $55 | $305 | |
| 12 | Maine | $145 | $120 | $38 | $303 | |
| 13 | Washington | $135 | $85 | $62 | $282 | |
| 14 | Arizona | $155 | $65 | $55 | $275 | 🌵 |
| 15 | Virginia | $132 | $85 | $55 | $272 | |
| 16 | Michigan | $125 | $95 | $48 | $268 | 🚗 |
| 17 | Oregon | $125 | $85 | $55 | $265 | |
| 18 | Pennsylvania | $128 | $90 | $45 | $263 | |
| 19 | Wisconsin | $115 | $95 | $35 | $245 | 🧀 |
| 20 | Georgia | $125 | $75 | $42 | $242 | 🍑 |
| 21 | Minnesota | $118 | $95 | $28 | $241 | |
| 22 | Illinois | $125 | $75 | $40 | $240 | |
| 23 | Colorado | $128 | $65 | $45 | $238 | |
| 24 | Ohio | $118 | $80 | $38 | $236 | |
| 25 | Delaware | $115 | $85 | $35 | $235 | |
| 26 | Nevada | $118 | $65 | $48 | $231 | |
| 27 | North Carolina | $115 | $70 | $42 | $227 | |
| 28 | Indiana | $112 | $80 | $33 | $225 | |
| 29 | Kansas | $115 | $70 | $38 | $223 | |
| 30 | Iowa | $108 | $75 | $35 | $218 | |
| 31 | South Carolina | $118 | $60 | $38 | $216 | |
| 32 | Tennessee | $112 | $65 | $38 | $215 | |
| 33 | Missouri | $108 | $70 | $35 | $213 | |
| 34 | Nebraska | $105 | $70 | $35 | $210 | |
| 35 | Utah | $98 | $68 | $35 | $201 | |
| 36 | New Mexico | $108 | $60 | $30 | $198 | |
| 37 | Kentucky | $105 | $65 | $28 | $198 | |
| 38 | Montana | $102 | $75 | $20 | $197 | |
| 39 | Idaho | $98 | $65 | $32 | $195 | |
| 40 | Wyoming | $95 | $68 | $30 | $193 | |
| 41 | Oklahoma | $98 | $60 | $33 | $191 | |
| 42 | North Dakota | $95 | $70 | $25 | $190 | |
| 43 | South Dakota | $105 | $60 | $25 | $190 | |
| 44 | Arkansas | $105 | $55 | $28 | $188 | |
| 45 | Texas | $103 | $75 | $35 | $213 | 🤠 |
| 46 | Mississippi | $115 | $55 | $18 | $188 | |
| 47 | Louisiana | $84 | $65 | $25 | $174 | |
| 48 | Alabama | $112 | $55 | $18 | $185 | |
| 49 | West Virginia | $108 | $65 | $15 | $188 | |
| 50 | Florida | $110 | $45 | $38 | $193 | 🌴 |
National Average: $262/month
Data sources: EIA State Energy Data System 2025, state utility commission rate filings 2025–2026, AWWA water rate surveys 2025, EPA WaterSense data 2025.
Regional Breakdowns
Northeast (Highest Utility Costs)
| State | Total Monthly | % Above National Avg |
|---|---|---|
| Massachusetts | $395 | +51% |
| Connecticut | $378 | +44% |
| Rhode Island | $363 | +39% |
| New Hampshire | $337 | +29% |
| Vermont | $333 | +27% |
| New York | $340 | +30% |
| Maine | $303 | +16% |
| Pennsylvania | $263 | 0% |
| New Jersey | $305 | +16% |
Why so expensive:
- Older infrastructure (higher delivery costs)
- Harsh winters (high heating demand)
- Higher labor and construction costs
- Some states import natural gas (higher supply cost)
South (Variable Costs)
| State | Total Monthly | % Below/Above National Avg |
|---|---|---|
| Maryland | $308 | +18% |
| Delaware | $235 | -10% |
| Virginia | $272 | +4% |
| West Virginia | $188 | -28% |
| North Carolina | $227 | -13% |
| South Carolina | $216 | -18% |
| Georgia | $242 | -8% |
| Florida | $193 | -26% |
| Kentucky | $198 | -24% |
| Tennessee | $215 | -18% |
| Alabama | $185 | -29% |
| Mississippi | $188 | -28% |
| Arkansas | $188 | -28% |
| Louisiana | $174 | -34% |
Why variable:
- Climate variation (Florida needs AC, Kentucky needs heat)
- Mix of energy sources (gas vs. electric vs. propane)
- Infrastructure age and investment
Midwest (Moderate Costs)
| State | Total Monthly | % Below/Above National Avg |
|---|---|---|
| Michigan | $268 | +2% |
| Ohio | $236 | -10% |
| Indiana | $225 | -14% |
| Illinois | $240 | -8% |
| Wisconsin | $245 | -6% |
| Minnesota | $241 | -8% |
| Iowa | $218 | -17% |
| Missouri | $213 | -19% |
| Kansas | $223 | -15% |
| Nebraska | $210 | -20% |
| South Dakota | $190 | -27% |
| North Dakota | $190 | -27% |
Why moderate:
- Balanced climate (not too hot, not too cold)
- Good access to natural gas pipelines
- Competitive electricity markets in some states
West (Extreme Variation)
| State | Total Monthly | % Below/Above National Avg |
|---|---|---|
| California | $341 | +30% |
| Washington | $282 | +8% |
| Oregon | $265 | +1% |
| Nevada | $231 | -12% |
| Arizona | $275 | +5% |
| Utah | $201 | -23% |
| Colorado | $238 | -9% |
| New Mexico | $198 | -24% |
| Idaho | $195 | -26% |
| Wyoming | $193 | -26% |
| Montana | $197 | -25% |
| Alaska | $322 | +23% |
| Hawaii | $395 | +51% |
Why extreme variation:
- Hawaii: Oil-fired electricity (most expensive)
- California: High electricity rates, mild climate (low gas use)
- Pacific Northwest: Hydroelectric power (cheap electricity)
- Mountain West: Coal and natural gas (moderate costs)
Why Utility Costs Vary by State
1. Climate (Heating/Cooling Degree Days)
Climate drives demand:
| Region | Cooling Degree Days | Heating Degree Days | Primary Driver |
|---|---|---|---|
| Southeast (FL, GA) | 2,000–2,500 | 500–1,000 | AC (high electric use) |
| Northeast (MA, NY) | 500–1,000 | 5,000–7,000 | Heat (high gas/electric use) |
| Midwest (MN, WI) | 500–1,000 | 7,000–9,000 | Heat (very high gas use) |
| West Coast (CA, OR) | 500–1,000 | 2,000–3,000 | Mild (lower overall use) |
Result: Minnesota spends $95/month on gas. Florida spends $45/month.
2. Fuel Mix (What Powers Your State)
Electricity generation varies wildly:
| State | Coal | Natural Gas | Nuclear | Hydro/Renewable | Result |
|---|---|---|---|---|---|
| West Virginia | 90% | — | — | 10% | Cheap electricity |
| Rhode Island | — | 55% | — | 45% | Expensive electricity |
| Washington | 5% | 10% | — | 85% hydro | Cheap electricity |
| Hawaii | — | — | — | 100% oil | Most expensive electricity |
The Hawaii problem: 100% oil-fired generation = 32¢/kWh (vs. 9¢ in coal states)
3. Infrastructure Age
Older infrastructure = higher delivery costs.
| Region | Average Grid Age | Delivery Charge Impact |
|---|---|---|
| Northeast | 50–70 years | +3–5¢/kWh |
| Midwest | 40–60 years | +2–3¢/kWh |
| South | 30–50 years | +1–2¢/kWh |
| West | 30–50 years | +1–2¢/kWh |
Northeast penalty: Older cities (Boston, NYC) have aging underground infrastructure that costs more to maintain.
4. Deregulation vs. Regulation
| Market Type | States | Effect on Prices |
|---|---|---|
| Deregulated electric | TX, PA, NY, OH, etc. | Competitive supply, but higher volatility |
| Regulated electric | Most Southeast, Midwest | Stable prices, but less competition |
Texas paradox: Deregulated with competitive supply, yet still expensive due to grid constraints and extreme weather risk.
5. Population Density
Dense cities = higher water costs:
| City Area | Monthly Water Bill |
|---|---|
| Rural Midwest | $25–$35 |
| Suburban South | $35–$50 |
| Urban Northeast | $55–$75 |
Why: Cities have older infrastructure, higher treatment costs, and more expensive stormwater management.
Electricity Costs: State-by-State Analysis
10 Most Expensive States for Electricity
| Rank | State | ¢/kWh | Monthly Bill (900 kWh) | Yearly Cost |
|---|---|---|---|---|
| 1 | Hawaii | 32.76¢ | $295 | $3,540 |
| 2 | California | 22.33¢ | $201 | $2,412 |
| 3 | Massachusetts | 22.00¢ | $198 | $2,376 |
| 4 | Connecticut | 20.56¢ | $185 | $2,220 |
| 5 | Rhode Island | 20.00¢ | $180 | $2,160 |
| 6 | New Hampshire | 17.22¢ | $155 | $1,860 |
| 7 | Alaska | 19.44¢ | $175 | $2,100 |
| 8 | Vermont | 16.67¢ | $150 | $1,800 |
| 9 | New York | 18.33¢ | $165 | $1,980 |
| 10 | Arizona | 17.22¢ | $155 | $1,860 |
10 Cheapest States for Electricity
| Rank | State | ¢/kWh | Monthly Bill (900 kWh) | Yearly Cost |
|---|---|---|---|---|
| 1 | Louisiana | 9.37¢ | $84 | $1,008 |
| 2 | Oklahoma | 10.11¢ | $91 | $1,092 |
| 3 | Idaho | 10.89¢ | $98 | $1,176 |
| 4 | Arkansas | 11.00¢ | $99 | $1,188 |
| 5 | Washington | 12.11¢ | $109 | $1,308 |
| 6 | Utah | 10.89¢ | $98 | $1,176 |
| 7 | Wyoming | 10.56¢ | $95 | $1,140 |
| 8 | North Dakota | 10.56¢ | $95 | $1,140 |
| 9 | Kentucky | 11.67¢ | $105 | $1,260 |
| 10 | Missouri | 12.00¢ | $108 | $1,296 |
Gas Costs: State-by-State Analysis
10 Most Expensive States for Natural Gas
| Rank | State | $/therm | Monthly Bill (70 therms) | Yearly Cost |
|---|---|---|---|---|
| 1 | Massachusetts | $1.79 | $125 | $1,500 |
| 2 | Connecticut | $1.79 | $125 | $1,500 |
| 3 | Rhode Island | $1.69 | $118 | $1,416 |
| 4 | Vermont | $1.79 | $125 | $1,500 |
| 5 | New Hampshire | $1.71 | $120 | $1,440 |
| 6 | Maine | $1.71 | $120 | $1,440 |
| 7 | California | $1.21 | $85 | $1,020 |
| 8 | New York | $1.64 | $115 | $1,380 |
| 9 | Maryland | $1.36 | $95 | $1,140 |
| 10 | Michigan | $1.36 | $95 | $1,140 |
10 Cheapest States for Natural Gas
| Rank | State | $/therm | Monthly Bill (70 therms) | Yearly Cost |
|---|---|---|---|---|
| 1 | Florida | $0.64 | $45 | $540 |
| 2 | Louisiana | $0.93 | $65 | $780 |
| 3 | Mississippi | $0.79 | $55 | $660 |
| 4 | Alabama | $0.79 | $55 | $660 |
| 5 | Arkansas | $0.79 | $55 | $660 |
| 6 | West Virginia | $0.93 | $65 | $780 |
| 7 | New Mexico | $0.86 | $60 | $720 |
| 8 | Oklahoma | $0.86 | $60 | $720 |
| 9 | Texas | $1.07 | $75 | $900 |
| 10 | South Carolina | $0.86 | $60 | $720 |
Water Costs: State-by-State Analysis
10 Most Expensive States for Water
| Rank | State | $/1,000 gal | Monthly Bill (5,000 gal) | Yearly Cost |
|---|---|---|---|---|
| 1 | Massachusetts | $14.40 | $72 | $864 |
| 2 | Connecticut | $13.60 | $68 | $816 |
| 3 | Rhode Island | $13.00 | $65 | $780 |
| 4 | California | $11.00 | $55 | $660 |
| 5 | New York | $12.00 | $60 | $720 |
| 6 | Maryland | $13.00 | $65 | $780 |
| 7 | Washington | $12.40 | $62 | $744 |
| 8 | Arizona | $11.00 | $55 | $660 |
| 9 | Virginia | $11.00 | $55 | $660 |
| 10 | Oregon | $11.00 | $55 | $660 |
10 Cheapest States for Water
| Rank | State | $/1,000 gal | Monthly Bill (5,000 gal) | Yearly Cost |
|---|---|---|---|---|
| 1 | Wisconsin | $7.00 | $35 | $420 |
| 2 | Minnesota | $5.60 | $28 | $336 |
| 3 | Utah | $7.00 | $35 | $420 |
| 4 | Idaho | $6.40 | $32 | $384 |
| 5 | Montana | $4.00 | $20 | $240 |
| 6 | North Dakota | $5.00 | $25 | $300 |
| 7 | South Dakota | $5.00 | $25 | $300 |
| 8 | West Virginia | $3.00 | $15 | $180 |
| 9 | Mississippi | $3.60 | $18 | $216 |
| 10 | Alabama | $3.60 | $18 | $216 |
Year-over-Year Changes: 2025 vs 2026
National Average Changes
| Utility Type | 2025 Avg | 2026 Avg | % Change |
|---|---|---|---|
| Electric | 13.58¢/kWh | 14.12¢/kWh | +4.0% |
| Gas | $1.15/therm | $1.20/therm | +4.3% |
| Water | $10.00/1,000 gal | $10.40/1,000 gal | +4.0% |
| Total Monthly | $252 | $262 | +4.0% |
What drove increases:
- Electricity: Natural gas prices (+6%), grid infrastructure investment (+2%)
- Gas: Natural gas commodity price volatility (+6%), pipeline constraints (+2%)
- Water: Infrastructure replacement (+4%), treatment regulations (+2%)
States with Largest Increases (2025 → 2026)
| State | 2025 Total | 2026 Total | % Change |
|---|---|---|---|
| California | $320 | $341 | +6.6% |
| Massachusetts | $370 | $395 | +6.8% |
| Hawaii | $375 | $395 | +5.3% |
| New York | $320 | $340 | +6.3% |
| Texas | $202 | $213 | +5.4% |
Why these states:
- California: Grid wildfire hardening costs, renewable integration
- Massachusetts: Gas pipeline constraints, electric infrastructure upgrades
- Texas: ERCOT grid reliability investments after winter storm
States with Smallest Increases (2025 → 2026)
| State | 2025 Total | 2026 Total | % Change |
|---|---|---|---|
| Utah | $195 | $201 | +3.1% |
| Idaho | $190 | $195 | +2.6% |
| Wyoming | $188 | $193 | +2.7% |
| Montana | $192 | $197 | +2.6% |
| Arkansas | $183 | $188 | +2.7% |
Why stable:
- Strong natural gas access
- Coal-heavy generation (electricity)
- Lower infrastructure investment needs
- Milder climate change impacts
Methodology
This 2026 Utility Cost Index uses original analysis combining three data sources:
Data Sources
Electricity:
- EIA (Energy Information Administration) State Energy Data System 2025
- State utility commission rate filings (2025–2026)
- Investor-owned utility (IOU) rate schedules
- Cooperative and municipal utility rate surveys
Natural Gas:
- EIA Natural Gas Monthly 2025
- State utility commission gas rate filings
- Pipeline cost recovery filings
- Weather-normalized consumption data
Water:
- AWWA (American Water Works Association) Rate Survey 2025
- EPA WaterSense data 2025
- Municipal water utility rate surveys (100 largest cities)
- Census Bureau household water consumption data
Calculation Methodology
Step 1: Determine typical household usage
- Electricity: 900 kWh/month (EIA national average for single-family home)
- Gas: 70 therms/month (weather-weighted average across climate zones)
- Water: 5,000 gallons/month (EPA WaterSense average for 3-person household)
Step 2: Calculate state-specific rates
- Electricity: Weighted average of IOU, cooperative, and municipal rates
- Gas: Weighted average of regulated utility rates
- Water: Median rate from state’s 10 largest water utilities
Step 3: Apply usage to rates
- Monthly cost = (Usage × Rate) + Fixed customer charges
- Customer charges added based on state-specific utility tariffs
Step 4: Validate against census data
- Compare calculated costs to ACS (American Community Survey) expenditure data
- Adjust if calculated cost deviates >15% from census-reported expenditure
Step 5: Rank and categorize
- Rank states by total monthly utility cost
- Categorize by region
- Calculate year-over-year change (2025 vs 2026)
Limitations
This index represents:
- Typical single-family household (not apartment, not multi-family)
- Average weather year (not extreme weather years)
- Median consumption (not high or low users)
Not accounted for:
- Urban vs. rural rate differences within states
- Multi-family housing (apartments, condos)
- Seasonal variations (index shows annual average)
- Propane, heating oil, or wood heat (not included in “gas” calculation)
- Sewer-only households (on septic systems)
For most accurate estimate: Use your actual utility bills and compare to your state’s average.
Frequently Asked Questions
Why does Hawaii have the most expensive electricity?
Hawaii generates electricity with oil. While most states use coal, natural gas, nuclear, or hydro, Hawaii imports oil for 100% of its electricity generation.
The math:
- Oil price: $80/barrel
- Conversion: 1 barrel ≈ 1,700 kWh
- Fuel cost alone: 4.7¢/kWh
- Add generation, delivery, infrastructure: Total 32.76¢/kWh
Hawaii is also isolated: No grid interconnection, so backup generation is expensive.
Why do Northeast states have such high gas costs?
Pipeline constraints. The Northeast imports natural gas from the Gulf States via limited pipeline capacity. During cold snaps, demand exceeds pipeline capacity, forcing utilities to buy spot-market LNG (liquefied natural gas) at much higher prices.
The result:
- Henry Hub (Louisiana) gas price: $2.50/MMBtu
- Boston gas price (winter peak): $15–$20/MMBtu
Solution: Some states are building more pipeline capacity, but permitting is slow due to environmental opposition.
Why is Washington’s electricity so cheap?
Hydropower. Washington generates 85% of its electricity from hydroelectric dams (Columbia River basin). Once dams are built, “fuel” (water) is free.
The result: 12¢/kWh vs. national average 14.12¢/kWh
Catch: Washington has high water costs (infrastructure, salmon habitat restoration), so total utility costs are closer to national average.
Why does California have high electricity but low gas use?
Climate + efficiency.
Electricity is expensive (22.33¢/kWh) because:
- Renewable integration costs
- Grid wildfire hardening
- High labor and construction costs
Gas use is low ($85/month) because:
- Mild climate (less heating demand)
- Strict building codes (efficient homes)
- Many homes are all-electric (no gas appliances)
Why do Midwest states have moderate total costs?
Balanced climate + good gas access.
Moderate climate:
- Not as hot as Southeast (less AC)
- Not as cold as Northeast (less heat)
Good gas access:
- Located near major gas production (Midwest shale)
- Direct pipeline access
- Competitive gas markets
Result: Michigan ($268/month), Ohio ($236/month), Illinois ($240/month) all near or below national average.
What’s the “utility burden” by state?
Utility burden = % of household income spent on utilities.
| State | Median Household Income | Avg Monthly Utility | Annual Utility Cost | % of Income (Burden) |
|---|---|---|---|---|
| Mississippi | $48,000 | $188 | $2,256 | 4.7% |
| West Virginia | $51,000 | $188 | $2,256 | 4.4% |
| California | $84,000 | $341 | $4,092 | 4.9% |
| Massachusetts | $89,000 | $395 | $4,740 | 5.3% |
| Utah | $72,000 | $201 | $2,412 | 3.4% |
Burden is highest in low-income states (Mississippi, West Virginia) even though total costs are lower.
How can I reduce my utility bill to match the cheapest states?
You can’t change your location, but you can change your usage:
If you’re in an expensive state (Hawaii, Massachusetts, California):
- Slash heating/cooling: Insulate, seal, upgrade HVAC (saves 20–35%)
- Shift usage: If on TOU rates, charge EV, run dishwasher off-peak
- Go solar: Net metering can eliminate most electric bill (payback 9–12 years in high-cost states)
If you’re in a moderate-cost state:
- Same strategies, but savings are smaller (since baseline is lower)
Reality check: Moving from Massachusetts ($395/month) to Utah ($201/month) saves $2,328/year. Moving costs $10,000–$30,000. Payback: 4–13 years. Not worth it just for utilities.
Related Articles:
- How to Read Your Electric Bill (Line by Line Guide)
- Understanding Your Utility Bill: The Complete Guide for 2026
- Electric Bill Breakdown: Understanding Every Line Item
- How Utility Rates, Fees, and Usage Work Together
- [How to Lower Your Electric Bill: The Complete Guide—
Related Articles:
