Get ready to crank up your air conditioner — and utility budget. July tends to be the hottest month of the year. In the U.S., energy costs eat between 5 and 22 percent of families’ total after-tax income, with the poorest Americans, or 25 million households, paying the highest of that range. And lower energy prices don’t necessarily equate to savings. Where we live and how much energy we use are a big part of the equation. Although Americans will be stuck inside less this year compared to last year during the height of the COVID-19 pandemic, residential electricity use is actually projected to increase by 2.8% in 2021.
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 | Connecticut | $411 | $166 (3) | $46 (11) | $124 (45) | $74 (4) |
| 2 | Wyoming | $403 | $115 (36) | $41 (17) | $246 (1) | $1 (27) |
| 3 | Massachusetts | $380 | $135 (25) | $63 (3) | $128 (42) | $54 (6) |
| 4 | Georgia | $374 | $155 (8) | $41 (18) | $179 (5) | $0 (45) |
| 5 | Alabama | $371 | $181 (1) | $21 (39) | $169 (12) | $0 (43) |
| 6 | Maine | $370 | $128 (29) | $7 (49) | $143 (28) | $92 (1) |
| 7 | Alaska | $366 | $145 (12) | $66 (2) | $123 (46) | $32 (7) |
| 8 | Mississippi | $358 | $159 (6) | $18 (46) | $181 (3) | $0 (50) |
| 9 | Indiana | $356 | $136 (24) | $40 (19) | $179 (4) | $1 (28) |
| 10 | New Hampshire | $355 | $142 (16) | $20 (43) | $112 (48) | $82 (2) |
| 11 | Rhode Island | $347 | $132 (27) | $62 (4) | $98 (50) | $56 (5) |
| 12 | Missouri | $346 | $137 (21) | $40 (20) | $169 (11) | $0 (38) |
| 13 | West Virginia | $343 | $143 (15) | $27 (31) | $169 (10) | $4 (15) |
| 14 | Vermont | $338 | $118 (33) | $17 (47) | $128 (41) | $74 (3) |
| 15 | North Dakota | $336 | $138 (19) | $24 (38) | $168 (13) | $5 (13) |
| 16 | Oklahoma | $336 | $137 (22) | $36 (25) | $163 (14) | $0 (44) |
| 17 | South Carolina | $335 | $176 (2) | $16 (48) | $142 (30) | $0 (31) |
| 18 | Minnesota | $328 | $111 (41) | $44 (14) | $170 (8) | $3 (19) |
| 19 | Texas | $326 | $157 (7) | $21 (41) | $148 (23) | $0 (48) |
| 20 | Virginia | $324 | $149 (9) | $27 (30) | $142 (29) | $5 (14) |
| 21 | South Dakota | $322 | $141 (17) | $26 (34) | $151 (21) | $3 (17) |
| 22 | Nevada | $322 | $117 (34) | $35 (26) | $170 (9) | $0 (32) |
| 23 | Maryland | $321 | $136 (23) | $39 (21) | $137 (37) | $9 (12) |
| 24 | California | $321 | $107 (44) | $38 (23) | $175 (6) | $0 (39) |
| 25 | Kentucky | $320 | $138 (20) | $25 (36) | $157 (17) | $0 (29) |
| 26 | North Carolina | $320 | $144 (14) | $18 (45) | $156 (18) | $2 (21) |
| 27 | Hawaii | $319 | $160 (4) | $5 (50) | $154 (20) | $0 (51) |
| 28 | Arkansas | $318 | $132 (26) | $27 (32) | $159 (15) | $0 (47) |
| 29 | New Jersey | $317 | $117 (35) | $60 (6) | $126 (43) | $15 (10) |
| 30 | Tennessee | $316 | $149 (10) | $21 (40) | $147 (24) | $0 (37) |
| 31 | Michigan | $315 | $112 (40) | $57 (7) | $145 (25) | $1 (23) |
| 32 | Delaware | $315 | $144 (13) | $32 (28) | $125 (44) | $13 (11) |
| 33 | Kansas | $314 | $128 (28) | $46 (10) | $140 (33) | $0 (41) |
| 34 | Pennsylvania | $313 | $124 (30) | $46 (12) | $121 (47) | $23 (9) |
| 35 | Utah | $311 | $86 (51) | $51 (8) | $174 (7) | $0 (33) |
| 36 | New Mexico | $310 | $92 (49) | $29 (29) | $189 (2) | $0 (42) |
| 37 | Ohio | $308 | $115 (37) | $50 (9) | $140 (32) | $3 (18) |
| 38 | Montana | $305 | $115 (38) | $33 (27) | $155 (19) | $2 (20) |
| 39 | Florida | $304 | $160 (5) | $4 (51) | $140 (31) | $0 (46) |
| 40 | New York | $303 | $102 (46) | $68 (1) | $105 (49) | $29 (8) |
| 41 | Wisconsin | $303 | $110 (42) | $41 (16) | $148 (22) | $4 (16) |
| 42 | Nebraska | $303 | $122 (31) | $36 (24) | $144 (26) | $0 (36) |
| 43 | Iowa | $301 | $119 (32) | $38 (22) | $143 (27) | $1 (25) |
| 44 | Louisiana | $301 | $145 (11) | $20 (42) | $136 (38) | $0 (40) |
| 45 | Illinois | $300 | $101 (47) | $61 (5) | $138 (35) | $0 (35) |
| 46 | Idaho | $298 | $114 (39) | $26 (33) | $157 (16) | $1 (24) |
| 47 | Arizona | $295 | $140 (18) | $18 (44) | $137 (36) | $0 (49) |
| 48 | Oregon | $275 | $110 (43) | $25 (37) | $140 (34) | $1 (26) |
| 49 | Colorado | $269 | $92 (50) | $43 (15) | $134 (39) | $0 (34) |
| 50 | Washington | $262 | $104 (45) | $26 (35) | $131 (40) | $2 (22) |
| 51 | District of Columbia | $217 | $97 (48) | $45 (13) | $75 (51) | $0 (30) |
*No. 1 = Most Energy-Expensive
Ask the Experts
According to the U.S. Energy Information Administration, the highest electricity 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?
- As economic activity resumes within strict limitations and with many employees still working from home, what is the impact on energy production and prices?
Ask the Experts
Ph.D. – Professor of Leadership, Department of Management, Lam Family College of Business – San Francisco State University
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Senior Research Scholar, SIPA Center on Global Energy Policy, Columbia University
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Associate Professor, Institute of the Environment and Sustainability – University of California, Los Angeles
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Assistant Professor, Department of Agricultural and Consumer Economics – University of Illinois at Urbana-Champaign
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Ph.D. – Professor of the Practice, Weitzman School of Design; Faculty Director, Kleinman Center for Energy Policy – University of Pennsylvania
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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, Insurance Institute for Highway Safety and the United States Environmental Protection Agency.