Get ready to crank up your air conditioner — and utility budget. Last summer was the hottest on record, and this year is predicted to break that record. Coupled with inflation, this heat wave will eat into many Americans’ wallets. For example, electricity prices went up by 6.2% in 2023 and are only expected to drop slightly in 2024, which is bad news for anyone who wants to blast the AC.
To better understand the impact of energy on our finances based on where we live and how much we use, WalletHub compared monthly energy costs in each of the 50 states. Our analysis uses a special formula that accounts for the following residential energy types: electricity, natural gas, motor fuel and home heating oil.
Cassandra Happe, WalletHub Analyst
Main Findings
Energy Costs by State
The total energy cost is the sum of the averages by energy component and should be used as a metric to compare energy costs across states. It is not intended to indicate the average cost a person pays in each state. Instead, the individual components should be used for that purpose.
| Overall Rank* | State | Total Energy Cost | Monthly Electricity Cost (Rank) | Monthly Natural-Gas Cost (Rank) | Monthly Motor-Fuel Cost (Rank) | Monthly Home Heating-Oil Cost (Rank) |
|---|---|---|---|---|---|---|
| 1 | Wyoming | $1591.45 | $118.74 (45) | $107.31 (13) | $278.42 (1) | $1086.99 (1) |
| 2 | North Dakota | $839.62 | $149.86 (23) | $95.36 (29) | $179.73 (12) | $414.66 (3) |
| 3 | Iowa | $798.15 | $129.0 (35) | $98.56 (26) | $149.70 (36) | $420.89 (2) |
| 4 | Montana | $787.45 | $125.39 (40) | $87.86 (38) | $178.47 (13) | $395.72 (5) |
| 5 | Minnesota | $782.13 | $123.23 (41) | $102.79 (18) | $147.51 (38) | $408.60 (4) |
| 6 | Massachusetts | $759.45 | $157.98 (17) | $157.24 (2) | $134.98 (43) | $309.25 (9) |
| 7 | Connecticut | $749.77 | $191.89 (4) | $150.63 (3) | $127.66 (45) | $279.59 (12) |
| 8 | Alaska | $715.81 | $149.33 (24) | $142.85 (4) | $154.61 (33) | $269.02 (15) |
| 9 | South Dakota | $708.82 | $152.75 (21) | $80.73 (46) | $160.22 (26) | $315.12 (8) |
| 10 | Virginia | $693.65 | $157.89 (18) | $104.92 (16) | $155.12 (32) | $275.71 (14) |
| 11 | Rhode Island | $689.79 | $141.79 (31) | $117.46 (8) | $111.53 (49) | $319.01 (6) |
| 12 | Utah | $683.52 | $96.45 (50) | $81.15 (45) | $190.01 (7) | $315.90 (7) |
| 13 | Alabama | $677.29 | $202.21 (2) | $86.72 (40) | $204.49 (2) | $183.87 (30) |
| 14 | Pennsylvania | $668.63 | $144.32 (30) | $110.83 (11) | $136.09 (42) | $277.38 (13) |
| 15 | Maryland | $665.36 | $145.88 (28) | $116.19 (9) | $152.42 (35) | $250.87 (17) |
| 16 | New Hampshire | $661.62 | $187.13 (5) | $109.72 (12) | $123.76 (47) | $241.01 (19) |
| 17 | Wisconsin | $659.29 | $122.86 (42) | $88.80 (35) | $163.11 (22) | $284.53 (11) |
| 18 | West Virginia | $658.86 | $171.48 (12) | $86.17 (41) | $161.23 (24) | $239.99 (21) |
| 19 | Maine | $645.44 | $164.11 (14) | $113.45 (10) | $155.86 (31) | $212.02 (26) |
| 20 | Indiana | $645.30 | $156.08 (19) | $88.63 (36) | $194.16 (6) | $206.42 (27) |
| 21 | Vermont | $644.21 | $136.62 (33) | $105.71 (15) | $156.58 (30) | $245.29 (18) |
| 22 | New Jersey | $642.97 | $121.95 (44) | $98.08 (27) | $124.54 (46) | $298.40 (10) |
| 23 | Ohio | $630.03 | $128.48 (36) | $102.96 (17) | $157.93 (29) | $240.66 (20) |
| 24 | Illinois | $622.0 | $122.0 (43) | $129.05 (7) | $145.55 (39) | $225.40 (22) |
| 25 | Washington | $618.37 | $114.10 (47) | $99.42 (23) | $145.35 (40) | $259.51 (16) |
| 26 | Oregon | $590.75 | $117.38 (46) | $83.51 (42) | $168.94 (18) | $220.92 (24) |
| 27 | Idaho | $590.52 | $127.54 (37) | $68.88 (49) | $174.86 (14) | $219.24 (25) |
| 28 | New York | $588.87 | $126.37 (39) | $135.50 (5) | $102.46 (50) | $224.54 (23) |
| 29 | Hawaii | $583.23 | $203.65 (1) | $212.11 (1) | $163.18 (21) | $4.29 (48) |
| 30 | Michigan | $582.72 | $130.03 (34) | $102.28 (19) | $145.05 (41) | $205.36 (28) |
| 31 | Missouri | $577.73 | $148.27 (25) | $100.41 (21) | $198.84 (4) | $130.21 (34) |
| 32 | Delaware | $564.49 | $153.02 (20) | $90.32 (33) | $131.56 (44) | $189.58 (29) |
| 33 | North Carolina | $557.31 | $147.24 (26) | $102.02 (20) | $159.91 (27) | $148.13 (31) |
| 34 | Kentucky | $556.46 | $163.27 (16) | $94.15 (30) | $171.63 (16) | $127.42 (35) |
| 35 | Arkansas | $540.62 | $165.04 (13) | $100.39 (22) | $172.97 (15) | $102.22 (37) |
| 36 | Nevada | $538.12 | $141.19 (32) | $73.95 (48) | $181.96 (9) | $141.02 (33) |
| 37 | Georgia | $533.32 | $178.17 (9) | $133.49 (6) | $180.77 (10) | $40.89 (41) |
| 38 | South Carolina | $533.05 | $180.71 (8) | $92.78 (31) | $147.66 (37) | $111.91 (36) |
| 39 | Tennessee | $523.68 | $163.97 (15) | $89.30 (34) | $170.87 (17) | $99.53 (38) |
| 40 | Oklahoma | $476.62 | $173.49 (11) | $97.81 (28) | $180.73 (11) | $24.59 (43) |
| 41 | California | $476.29 | $144.79 (29) | $87.62 (39) | $196.65 (5) | $47.23 (40) |
| 42 | Louisiana | $473.93 | $191.99 (3) | $81.25 (44) | $164.11 (20) | $36.58 (42) |
| 43 | Colorado | $470.31 | $106.91 (48) | $98.63 (25) | $121.90 (48) | $142.87 (32) |
| 44 | Florida | $461.64 | $186.19 (7) | $99.04 (24) | $154.0 (34) | $22.41 (44) |
| 45 | Mississippi | $457.13 | $174.55 (10) | $82.97 (43) | $199.11 (3) | $.51 (50) |
| 46 | Nebraska | $453.21 | $127.25 (38) | $91.01 (32) | $159.51 (28) | $75.44 (39) |
| 47 | Texas | $436.69 | $186.47 (6) | $88.16 (37) | $160.24 (25) | $1.82 (49) |
| 48 | Kansas | $436.44 | $146.61 (27) | $106.51 (14) | $161.81 (23) | $21.52 (45) |
| 49 | Arizona | $400.42 | $151.96 (22) | $68.83 (50) | $167.05 (19) | $12.58 (46) |
| 50 | New Mexico | $375.98 | $103.36 (49) | $75.72 (47) | $186.06 (8) | $10.84 (47) |
Note: *No. 1 = Most Energy-Expensive
- Highest
- 1. Hawaii
- 2. Massachusetts
- 3. California
- 4. New Hampshire
- 5. Connecticut
- Lowest
- 46. North Dakota
- 47. Utah
- 48. Nebraska
- 49. Idaho
- 50. Washington
- Highest
- 1. Louisiana
- 2. Alabama
- 3. Mississippi
- 4. Oklahoma
- 5. North Dakota
- Lowest
- 46. Rhode Island
- 47. Massachusetts
- 48. New York
- 49. California
- 50. Hawaii
- Highest
- 1. Hawaii
- 2. Florida
- 3. Maine
- 4. New Hampshire
- 5. Massachusetts
- Lowest
- 46. South Dakota
- 47. North Dakota
- 48. Utah
- 49. Montana
- 50. Idaho
- Highest
- 1. Alaska
- 2. Illinois
- 3. Michigan
- 4. North Dakota
- 5. Idaho
- Lowest
- 46. Alabama
- 47. California
- 48. Arizona
- 49. Florida
- 50. Hawaii
- Highest
- 1. California
- 2. Hawaii
- 3. Washington
- 4. Nevada
- 5. Oregon
- Lowest
- 46. Arkansas
- 47. Oklahoma
- 48. Louisiana
- 49. Colorado
- 50. Mississippi
- Highest
- 1. Wyoming
- 2. Mississippi
- 3. Alabama
- 4. Missouri
- 5. New Mexico
- Lowest
- 46. Connecticut
- 47. Hawaii
- 48. Rhode Island
- 49. Washington
- 50. New York
- Highest
- 1. Delaware
- 2. New Jersey
- 3. New York
- 4. Maryland
- 5. New Hampshire
- Lowest
- 46. Kentucky
- 47. Michigan
- 48. Wisconsin
- 49. Iowa
- 50. Nebraska
- Highest
- 1. Wyoming
- 2. Iowa
- 3. Minnesota
- 4. North Dakota
- 5. Montana
- Lowest
- 46. Arizona
- 47. New Mexico
- 48. Hawaii
- 49. Texas
- 50. Mississippi
In-Depth Look at the States with the Highest Energy Costs
Wyoming
Wyoming is the state with the highest energy costs in 2024. This is due in part to the fact that Wyoming has the highest gas consumption per driver and the highest residential oil consumption per capita. Coupled with relatively high prices for heating oil and natural gas, this makes Wyoming a particularly costly state.
Considering Wyoming’s extremely cold winters, however, this isn’t too much of a surprise. Residents also may not have as many heating options as other states, given that many residents live in more remote areas.
North Dakota
North Dakota has the second-highest energy costs, though the average total across energy types is much lower than in Wyoming, the top state.
High consumption contributes to North Dakota residents’ expensive energy costs. North Dakota has the fifth-highest electricity consumption, the fourth-highest natural gas consumption, and the fourth-highest residential fuel oil consumption per capita. Interestingly, aside from heating oil, energy isn’t particularly expensive in the state. It’s just high usage that drives up monthly costs. But high heating expenses can still sting during North Dakota’s harsh winters.
Iowa
Iowa is the third-most energy-expensive state. This is due mainly to the state having the second-highest residential fuel oil consumption per capita. While Iowa doesn’t have quite as frigid winters as the other top states, temperatures do get very low, so high consumption makes sense.
Aside from fuel oil, the only other energy type that Iowans use more than average is natural gas.
Ask the Experts
According to the U.S. Energy Information Administration, the highest energy consumption of the year is recorded in July, followed by August. That leads to higher energy costs during this period. For advice on reducing our dependence on traditional energy sources and cutting costs, we asked a panel of energy and policy experts to share their thoughts on the following key questions:
- What are some good tips for saving money on energy bills?
- What makes energy costs higher in some states than in others?
- Are tax deductions and credits effective at incentivizing households to be more energy-efficient?
- Do you believe the government should continue to provide energy assistance to low-income households? If so, what’s the best way?
- With gas prices higher than they were a year ago, what should consumers expect for the upcoming months of 2024?
Ask the Experts
Adjunct Professor of Law – Washington University School of Law
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Ph.D. – Associate Professor, Operations Management, Naveen Jindal School of Management – University of Texas at Dallas
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Methodology
In order to determine the most and least energy-expensive states, WalletHub estimated energy costs for each state using the following components:
Average Monthly Electricity Cost = (Number of Electricity Customers * Average Monthly Consumption * Average Retail Price of Electricity) / Number of Housing Units
Average Monthly Natural-Gas Cost = ((Total Million Cubic Feet Consumed in a State / Utility Gas Housing Units) / 12 * 1,000) * Average Residential Price of Natural Gas
Average Monthly Home Heating Oil Cost = [(Gallons of Heating Oil Consumed / Fuel Oil Housing Units) / 12] * Average Residential Price of Home Heating Oil
Average Monthly Motor Fuel Price = [(Miles Traveled/Average Motor-Fuel Consumption/Number of Drivers in the State) / 12] * Average Motor-Fuel Price
The total energy cost is the sum of the averages by energy component and should be used as a metric to compare energy costs across states. It is not intended to indicate the average cost a person pays in each state. Instead, the individual components should be used for that purpose.
Sources: Data used to create this ranking were collected as of June 3, 2024 from the U.S. Census Bureau, U.S. Energy Information Administration, Federal Highway Administration, American Automobile Association, National Highway Traffic Safety Administration, and the United States Environmental Protection Agency.
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