Get ready to crank up your air conditioner — and utility budget. Last summer was the third hottest on record for America, and this year is predicted to bring more sweltering heat to many parts of the country. Coupled with high inflation, this heat wave may eat into many Americans’ wallets, as one fourth of U.S. households already spend more than 6% of their income on utility bills. Where we live and how much energy we use also factor into the equation, though. It’s important to consider energy consumption when choosing a place to live, as around 27% of American households have difficulty meeting their energy needs.
To better understand the impact of energy on our finances relative to our location and consumption habits, WalletHub compared the total monthly energy bills in each of the 50 states and the District of Columbia. Our analysis uses a special formula that accounts for the following residential energy types: electricity, natural gas, motor fuel and home heating oil.
Main Findings
Total Energy Costs by State
| 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 | $845 | $117 (42) | $78 (24) | $287 (1) | $362 (1) |
| 2 | North Dakota | $645 | $140 (24) | $65 (44) | $187 (9) | $253 (2) |
| 3 | Alaska | $613 | $150 (12) | $152 (2) | $144 (39) | $167 (11) |
| 4 | Connecticut | $593 | $171 (2) | $132 (3) | $129 (46) | $161 (15) |
| 5 | Massachusetts | $589 | $143 (20) | $116 (4) | $137 (41) | $194 (5) |
| 6 | Oklahoma | $583 | $145 (17) | $71 (34) | $179 (12) | $188 (7) |
| 7 | Vermont | $567 | $133 (28) | $92 (10) | $162 (24) | $180 (9) |
| 8 | Iowa | $552 | $122 (35) | $68 (43) | $155 (34) | $208 (4) |
| 9 | New Hampshire | $551 | $148 (15) | $89 (13) | $124 (48) | $191 (6) |
| 10 | Indiana | $545 | $142 (22) | $71 (35) | $199 (3) | $133 (23) |
| 11 | South Dakota | $543 | $149 (13) | $62 (47) | $169 (19) | $163 (12) |
| 12 | West Virginia | $539 | $157 (9) | $71 (33) | $159 (28) | $151 (19) |
| 13 | Colorado | $538 | $101 (48) | $68 (40) | $135 (43) | $234 (3) |
| 14 | Minnesota | $530 | $117 (41) | $70 (36) | $156 (32) | $187 (8) |
| 15 | Rhode Island | $526 | $136 (26) | $109 (7) | $112 (49) | $168 (10) |
| 16 | Hawaii | $523 | $165 (4) | $186 (1) | $170 (18) | $2 (49) |
| 17 | Montana | $522 | $119 (39) | $68 (38) | $180 (11) | $156 (17) |
| 18 | Maine | $516 | $126 (32) | $89 (12) | $156 (31) | $145 (20) |
| 19 | Utah | $513 | $92 (50) | $65 (45) | $195 (8) | $162 (13) |
| 20 | Ohio | $513 | $119 (40) | $81 (21) | $159 (29) | $153 (18) |
| 21 | Wisconsin | $510 | $115 (44) | $68 (39) | $165 (21) | $162 (14) |
| 22 | Virginia | $510 | $143 (19) | $86 (16) | $148 (38) | $132 (24) |
| 23 | Maryland | $494 | $133 (27) | $94 (8) | $143 (40) | $123 (26) |
| 24 | New Jersey | $485 | $121 (36) | $79 (23) | $128 (47) | $158 (16) |
| 25 | Pennsylvania | $481 | $125 (33) | $86 (18) | $136 (42) | $135 (22) |
| 26 | Michigan | $480 | $132 (29) | $75 (27) | $133 (44) | $140 (21) |
| 27 | Washington | $476 | $109 (46) | $87 (14) | $148 (37) | $132 (25) |
| 28 | Alabama | $468 | $179 (1) | $83 (20) | $199 (4) | $7 (47) |
| 29 | South Carolina | $465 | $170 (3) | $87 (15) | $149 (36) | $59 (34) |
| 30 | Georgia | $454 | $157 (8) | $111 (6) | $168 (20) | $18 (43) |
| 31 | North Carolina | $453 | $142 (21) | $85 (19) | $163 (23) | $63 (33) |
| 32 | Idaho | $452 | $120 (38) | $53 (51) | $177 (13) | $103 (28) |
| 33 | Delaware | $448 | $142 (23) | $77 (25) | $133 (45) | $96 (30) |
| 34 | Kentucky | $447 | $145 (16) | $74 (29) | $173 (15) | $54 (35) |
| 35 | Illinois | $447 | $104 (47) | $90 (11) | $150 (35) | $102 (29) |
| 36 | New York | $446 | $112 (45) | $114 (5) | $108 (50) | $111 (27) |
| 37 | Oregon | $439 | $116 (43) | $72 (32) | $164 (22) | $87 (31) |
| 38 | Missouri | $434 | $139 (25) | $75 (28) | $197 (6) | $24 (40) |
| 39 | Tennessee | $432 | $148 (14) | $74 (30) | $171 (16) | $40 (36) |
| 40 | Mississippi | $427 | $161 (5) | $69 (37) | $197 (5) | $0 (50) |
| 41 | Arkansas | $422 | $153 (10) | $81 (22) | $170 (17) | $17 (44) |
| 42 | Nevada | $421 | $121 (37) | $55 (50) | $174 (14) | $72 (32) |
| 43 | Louisiana | $420 | $160 (6) | $68 (41) | $161 (27) | $32 (38) |
| 44 | Arizona | $416 | $145 (18) | $58 (49) | $195 (7) | $18 (42) |
| 45 | Florida | $415 | $159 (7) | $94 (9) | $155 (33) | $7 (48) |
| 46 | California | $408 | $130 (31) | $73 (31) | $181 (10) | $24 (39) |
| 47 | Kansas | $384 | $131 (30) | $76 (26) | $161 (25) | $16 (45) |
| 48 | Nebraska | $384 | $123 (34) | $64 (46) | $161 (26) | $36 (37) |
| 49 | Texas | $378 | $153 (11) | $68 (42) | $158 (30) | $0 (51) |
| 50 | New Mexico | $373 | $100 (49) | $58 (48) | $207 (2) | $8 (46) |
| 51 | District of Columbia | $274 | $89 (51) | $86 (17) | $76 (51) | $23 (41) |
*No. 1 = Most Energy-Expensive
- Highest
- 1. Hawaii
- 2. Massachusetts
- 3. California
- 4. Alaska
- 5. Rhode Island
- Lowest
- 47. North Dakota
- 48. Nebraska
- 49. Utah
- 50. Idaho
- 51. Washington
- Highest
- 1. Louisiana
- 2. Mississippi
- 3. Alabama
- 4. Arkansas
- 5. Tennessee
- Lowest
- 47. Massachusetts
- 48. Rhode Island
- 49. New York
- 50. California
- 51. Hawaii
- Highest
- 1. Hawaii
- 2. Florida
- 3. Maine
- 4. California
- 5. New Hampshire
- Lowest
- 47. North Dakota
- 48. Colorado
- 49. Utah
- 50. Montana
- 51. Idaho
- Highest
- 1. Alaska
- 2. Illinois
- 3. New York
- 4. Connecticut
- 5. Michigan
- Lowest
- 47. Texas
- 48. California
- 49. Florida
- 50. Hawaii
- 51. Arizona
- Highest
- 1. California
- 2. Hawaii
- 3. Arizona
- 4. Washington
- 5. Nevada
- Lowest
- 47. Arkansas
- 48. Alabama
- 49. Texas
- 50. Louisiana
- 51. Mississippi
- Highest
- 1. Wyoming
- 2. Mississippi
- 3. Alabama
- 4. Missouri
- 5. New Mexico
- Lowest
- 47. Hawaii
- 48. Rhode Island
- 49. Washington
- 50. New York
- 51. District of Columbia
- Highest
- 1. Delaware
- 2. New Jersey
- 3. Maryland
- 4. Minnesota
- 5. New York
- Lowest
- 47. Kentucky
- 48. Maine
- 49. Wisconsin
- 50. Iowa
- 51. Nebraska
- Highest
- 1. Wyoming
- 2. North Dakota
- 3. Iowa
- 4. Colorado
- 5. Massachusetts
- Lowest
- 47. Alabama
- 48. Florida
- 49. Hawaii
- 50. Mississippi
- 51. Texas
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?
- Will energy prices continue to rise 2023 and why?
Ask the Experts
Professor of Law, Professor and Wilson Faculty Fellow in the College of Earth and Mineral Sciences – Penn State Law
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Assistant Professor of Financial Economics – Methodist University
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Professor and Associate Chair, Department of Economics – University of Missouri
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Director, Center for Sustainable Energy at Notre Dame (ND Energy); Henry Massman Professor of Civil & Environmental Engineering & Earth Sciences; Concurrent Professor, Chemistry and Biochemistry, Department of Civil & Environmental Engineering & Earth Sciences – University of Notre Dame
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Professor of Economics and Public Policy – Carnegie Mellon University's Heinz College of Information Systems and Public Policy
Read More
Methodology
In order to determine the most and least energy-expensive states, WalletHub compared the average monthly energy bills in each of the 50 states and the District of Columbia using the following equation:
(Average Monthly Consumption of Electricity * Average Retail Price of Electricity) + (Average Monthly Consumption of Natural Gas * Average Residential Price of Natural Gas) + (Average Monthly Consumption of Home Heating Oil * Average Residential Price of Home Heating Oil) + (Average Motor-Fuel Price * (Miles Traveled/Average Motor-Fuel Consumption/Number of Drivers in the State)) = Average Monthly Energy Bill in the State
Sources: Data used to create this ranking were collected 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.
