Utility Costs by State 2026: Electricity, Gas, Water, and Internet Compared
Utilities are often an afterthought in cost of living comparisons, but the variation is substantial. Hawaii's residents pay 42.1 cents per kilowatt-hour -- more than four times what Washington state residents pay at 10.15 cents. Monthly utility bills range from under $250 in the cheapest states to over $500 in the most expensive. Climate, energy sources, and infrastructure all play a role.
All 50 States: Utility Cost Rankings
| # | State | Utility Index | Electric Bill | Electric Rate | Gas Bill | Water Bill |
|---|---|---|---|---|---|---|
| 1 | Idaho | 81.2 | $102/mo | 10.92c/kWh | $58/mo | $42/mo |
| 2 | Utah | 82.5 | $92/mo | 10.85c/kWh | $62/mo | $40/mo |
| 3 | Washington | 82.5 | $98/mo | 10.15c/kWh | $62/mo | $52/mo |
| 4 | Wyoming | 82.8 | $102/mo | 11.12c/kWh | $72/mo | $38/mo |
| 5 | Montana | 84.5 | $98/mo | 11.85c/kWh | $72/mo | $42/mo |
| 6 | North Dakota | 85.8 | $118/mo | 11.65c/kWh | $88/mo | $38/mo |
| 7 | Colorado | 88.5 | $108/mo | 14.56c/kWh | $68/mo | $48/mo |
| 8 | Oregon | 88.5 | $108/mo | 11.85c/kWh | $62/mo | $52/mo |
| 9 | South Dakota | 89.5 | $128/mo | 13.15c/kWh | $82/mo | $40/mo |
| 10 | Nevada | 91.5 | $125/mo | 12.65c/kWh | $52/mo | $45/mo |
| 11 | Nebraska | 92.8 | $118/mo | 12.38c/kWh | $78/mo | $42/mo |
| 12 | New Mexico | 94.2 | $108/mo | 14.12c/kWh | $62/mo | $42/mo |
| 13 | Georgia | 96.2 | $142/mo | 13.25c/kWh | $68/mo | $45/mo |
| 14 | Louisiana | 96.5 | $135/mo | 11.92c/kWh | $62/mo | $38/mo |
| 15 | Minnesota | 96.8 | $118/mo | 14.5c/kWh | $92/mo | $45/mo |
| 16 | Illinois | 97.3 | $118/mo | 14.72c/kWh | $82/mo | $45/mo |
| 17 | Iowa | 97.5 | $125/mo | 14.02c/kWh | $82/mo | $40/mo |
| 18 | Mississippi | 97.8 | $145/mo | 12.48c/kWh | $65/mo | $35/mo |
| 19 | Tennessee | 97.8 | $138/mo | 12.52c/kWh | $68/mo | $40/mo |
| 20 | Indiana | 98.2 | $138/mo | 14.18c/kWh | $78/mo | $38/mo |
| 21 | Missouri | 99.2 | $128/mo | 13.12c/kWh | $78/mo | $40/mo |
| 22 | Kansas | 99.5 | $132/mo | 14.15c/kWh | $78/mo | $42/mo |
| 23 | Virginia | 99.5 | $138/mo | 13.52c/kWh | $78/mo | $48/mo |
| 24 | Arkansas | 99.8 | $130/mo | 12.36c/kWh | $72/mo | $38/mo |
| 25 | North Carolina | 99.8 | $132/mo | 12.58c/kWh | $72/mo | $42/mo |
| 26 | Oklahoma | 100.2 | $135/mo | 12.1c/kWh | $72/mo | $38/mo |
| 27 | Arizona | 100.3 | $148/mo | 13.62c/kWh | $68/mo | $52/mo |
| 28 | Ohio | 100.5 | $132/mo | 14.55c/kWh | $88/mo | $42/mo |
| 29 | Florida | 101.2 | $155/mo | 14.32c/kWh | $42/mo | $52/mo |
| 30 | Wisconsin | 101.2 | $118/mo | 15.42c/kWh | $88/mo | $45/mo |
| 31 | Texas | 101.5 | $148/mo | 13.45c/kWh | $58/mo | $45/mo |
| 32 | Kentucky | 102.5 | $142/mo | 12.25c/kWh | $85/mo | $38/mo |
| 33 | Alabama | 103.7 | $166/mo | 14.45c/kWh | $85/mo | $42/mo |
| 34 | West Virginia | 103.8 | $142/mo | 12.82c/kWh | $78/mo | $35/mo |
| 35 | Delaware | 107.3 | $135/mo | 14.08c/kWh | $82/mo | $48/mo |
| 36 | Michigan | 107.5 | $135/mo | 17.82c/kWh | $95/mo | $48/mo |
| 37 | South Carolina | 107.5 | $158/mo | 14.35c/kWh | $68/mo | $42/mo |
| 38 | Pennsylvania | 108.5 | $148/mo | 16.85c/kWh | $92/mo | $52/mo |
| 39 | California | 113.2 | $178/mo | 27.1c/kWh | $62/mo | $72/mo |
| 40 | Maryland | 114.8 | $152/mo | 15.25c/kWh | $88/mo | $58/mo |
| 41 | New Jersey | 115.2 | $148/mo | 17.52c/kWh | $92/mo | $62/mo |
| 42 | Maine | 120.5 | $145/mo | 21.85c/kWh | $115/mo | $55/mo |
| 43 | New Hampshire | 122.5 | $155/mo | 22.45c/kWh | $105/mo | $55/mo |
| 44 | New York | 125.5 | $142/mo | 20.62c/kWh | $98/mo | $62/mo |
| 45 | Vermont | 125.8 | $135/mo | 20.25c/kWh | $118/mo | $55/mo |
| 46 | Rhode Island | 128.5 | $168/mo | 24.12c/kWh | $108/mo | $58/mo |
| 47 | Connecticut | 131.5 | $198/mo | 25.63c/kWh | $108/mo | $62/mo |
| 48 | Massachusetts | 138.5 | $185/mo | 28.58c/kWh | $118/mo | $65/mo |
| 49 | Hawaii | 168.5 | $248/mo | 42.1c/kWh | $45/mo | $85/mo |
| 50 | Alaska | 169.8 | $194/mo | 24.21c/kWh | $112/mo | $68/mo |
Source: U.S. Energy Information Administration (EIA), state utility commission data. Rates as of Q1 2026.
Electricity Rate Comparison
10 Cheapest Electricity States
10 Most Expensive Electricity States
Heating vs Cooling: The Climate Factor
Climate is the invisible hand behind utility costs. Northern states pay significantly more for heating (natural gas and electricity) during winter months, while southern states face high cooling costs in summer. The net utility cost depends on the balance between these two factors.
High heating cost states: Alaska, Maine, Vermont, New Hampshire, Connecticut, and Massachusetts all spend $800+ per year on natural gas heating alone. These states have long winters (5-6 months of heating) and older housing stock with less insulation.
High cooling cost states: Arizona, Texas, Florida, Louisiana, and Alabama face 4-6 months of air conditioning. However, cooling via electricity is generally cheaper than heating via natural gas, so net annual utility bills in the South are often lower than in the North despite comparable or greater total energy usage.
The sweet spot: States with mild climates that need minimal heating AND cooling -- like the Pacific Northwest (Oregon, Washington) and parts of California -- have some of the lowest total utility costs. Washington combines mild climate with the nation's cheapest electricity (hydroelectric at 10.15c/kWh), resulting in monthly utility bills well below $200 for many households.
Internet as a Modern Utility
Broadband internet is increasingly considered an essential utility, especially for remote workers. While not included in the traditional utility COLI, internet costs add $50-$120 per month depending on location and provider competition. States with strong broadband infrastructure and multiple ISP options tend to have lower internet costs.
The digital divide remains significant: states like California (90% at 100Mbps), Massachusetts (91%), and New Jersey (90%) have near-universal high-speed access, while Mississippi (65%), Wyoming (66%), and Montana (68%) have significant gaps, particularly in rural areas. For remote workers, broadband availability should be checked at the specific address level, not just the state level. See our remote worker guide for broadband rankings.
Frequently Asked Questions
What state has the cheapest utilities?
Idaho has the lowest utility sub-index at 81.2, driven by cheap hydroelectric power (10.92 cents/kWh). Utah (82.5), Wyoming (82.8), and Washington (82.5) also benefit from abundant hydroelectric and natural gas resources. Monthly utility bills in these states average $250-$280 for all utilities combined.
What state has the most expensive utilities?
Alaska has the highest utility sub-index at 169.8, driven by extreme heating needs and expensive energy generation. Hawaii (168.5) pays the most for electricity at 42.1 cents/kWh -- more than 4x the cheapest states. Connecticut (131.5) and Rhode Island (128.5) have the highest mainland utility costs.
Why is electricity so expensive in Hawaii?
Hawaii generates most of its electricity from imported petroleum, which must be shipped to the islands. At 42.1 cents/kWh, Hawaii's rate is approximately 4x the national average. The state is investing heavily in solar and wind to reduce this dependency, but imported fuel still dominates.
What state has the cheapest electricity?
Washington state has the cheapest electricity at 10.15 cents/kWh, thanks to massive hydroelectric infrastructure (Grand Coulee Dam and others). Idaho (10.92), Louisiana (11.92), North Dakota (11.65), and Utah (10.85) also have very low rates. Hydroelectric, natural gas, and coal are the cheapest generation sources.
How much do internet costs vary by state?
Broadband costs vary from about $45-$60/month in competitive urban markets to $80-$120/month in rural areas with limited providers. The variation is driven more by local competition than state-level factors. States with strong municipal broadband or multiple ISP options tend to have lower prices.