Get ready to crank up your air conditioner — and utility budget. July tends to be the hottest month of the year. So if you’re trying to beat the heat, this month’s higher-than-usual power bill could burn a hole through your wallet.
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. While commercial and industrial electricity use have declined in 2021 due to business closures during lockdowns, residential electricity use has actually increased, which means many people will be forking over larger checks to their power companies.
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. Read on for our findings, tips and insight from a panel of experts, and a full description of our methodology.
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 | $372 | $169 (3) | $45 (14) | $79 (46) | $80 (3) |
| 2 | Massachusetts | $351 | $140 (24) | $65 (4) | $89 (35) | $57 (6) |
| 3 | Rhode Island | $335 | $130 (28) | $65 (3) | $69 (50) | $70 (4) |
| 4 | New Hampshire | $329 | $144 (17) | $20 (43) | $76 (48) | $88 (2) |
| 5 | Alaska | $325 | $142 (18) | $67 (2) | $77 (47) | $39 (7) |
| 6 | Maine | $324 | $123 (32) | $8 (49) | $92 (27) | $102 (1) |
| 7 | Wyoming | $315 | $112 (40) | $41 (20) | $161 (1) | $1 (28) |
| 8 | Georgia | $302 | $154 (8) | $42 (16) | $106 (11) | $0 (42) |
| 9 | Alabama | $301 | $180 (1) | $24 (39) | $97 (19) | $0 (40) |
| 10 | Indiana | $295 | $138 (26) | $41 (18) | $115 (7) | $1 (29) |
| 11 | Vermont | $294 | $123 (33) | $18 (47) | $84 (38) | $70 (5) |
| 12 | West Virginia | $291 | $148 (11) | $29 (30) | $109 (9) | $4 (18) |
| 13 | Pennsylvania | $289 | $129 (29) | $47 (12) | $84 (39) | $29 (9) |
| 14 | Missouri | $287 | $148 (13) | $41 (19) | $98 (17) | $0 (38) |
| 15 | Hawaii | $286 | $161 (5) | $5 (50) | $121 (3) | $0 (51) |
| 16 | Mississippi | $285 | $162 (4) | $19 (44) | $104 (12) | $0 (50) |
| 17 | Maryland | $284 | $142 (19) | $39 (23) | $91 (29) | $13 (12) |
| 18 | New York | $282 | $110 (43) | $68 (1) | $73 (49) | $31 (8) |
| 19 | Minnesota | $278 | $115 (38) | $47 (11) | $112 (8) | $3 (20) |
| 20 | Delaware | $278 | $148 (12) | $35 (24) | $81 (44) | $13 (11) |
| 21 | Oklahoma | $276 | $140 (22) | $35 (25) | $100 (15) | $0 (43) |
| 22 | North Dakota | $275 | $139 (25) | $24 (37) | $107 (10) | $5 (15) |
| 23 | Kansas | $275 | $140 (23) | $51 (9) | $84 (40) | $0 (44) |
| 24 | South Carolina | $275 | $174 (2) | $18 (46) | $82 (43) | $0 (30) |
| 25 | New Jersey | $274 | $118 (36) | $58 (6) | $82 (42) | $15 (10) |
| 26 | Nevada | $270 | $123 (30) | $30 (28) | $116 (5) | $0 (32) |
| 27 | Ohio | $268 | $122 (34) | $49 (10) | $93 (24) | $3 (19) |
| 28 | Virginia | $268 | $150 (10) | $28 (32) | $84 (41) | $6 (13) |
| 29 | Kentucky | $267 | $142 (21) | $26 (35) | $99 (16) | $0 (31) |
| 30 | Michigan | $267 | $116 (37) | $57 (7) | $93 (25) | $1 (26) |
| 31 | South Dakota | $267 | $142 (20) | $27 (33) | $94 (22) | $4 (16) |
| 32 | California | $265 | $108 (45) | $34 (26) | $124 (2) | $0 (41) |
| 33 | Texas | $265 | $154 (9) | $23 (41) | $89 (33) | $0 (49) |
| 34 | North Carolina | $264 | $145 (16) | $19 (45) | $97 (18) | $2 (22) |
| 35 | Tennessee | $262 | $154 (7) | $23 (40) | $85 (37) | $0 (36) |
| 36 | Arkansas | $260 | $137 (27) | $30 (29) | $94 (23) | $0 (39) |
| 37 | Utah | $259 | $88 (51) | $53 (8) | $117 (4) | $0 (33) |
| 38 | Illinois | $257 | $104 (46) | $62 (5) | $91 (28) | $0 (34) |
| 39 | Iowa | $255 | $120 (35) | $42 (15) | $92 (26) | $1 (27) |
| 40 | Arizona | $254 | $146 (15) | $18 (48) | $90 (30) | $0 (48) |
| 41 | Wisconsin | $253 | $112 (42) | $41 (17) | $96 (20) | $4 (17) |
| 42 | Nebraska | $253 | $123 (31) | $40 (21) | $90 (32) | $0 (35) |
| 43 | Florida | $252 | $158 (6) | $4 (51) | $90 (31) | $0 (45) |
| 44 | Louisiana | $248 | $148 (14) | $21 (42) | $80 (45) | $0 (47) |
| 45 | Idaho | $247 | $115 (39) | $26 (34) | $104 (13) | $2 (23) |
| 46 | Montana | $242 | $112 (41) | $33 (27) | $96 (21) | $2 (24) |
| 47 | New Mexico | $238 | $93 (49) | $29 (31) | $115 (6) | $0 (46) |
| 48 | Oregon | $236 | $109 (44) | $24 (38) | $102 (14) | $1 (25) |
| 49 | Colorado | $220 | $92 (50) | $39 (22) | $88 (36) | $0 (37) |
| 50 | Washington | $219 | $103 (47) | $26 (36) | $89 (34) | $2 (21) |
| 51 | District of Columbia | $199 | $99 (48) | $46 (13) | $49 (51) | $6 (14) |
*No. 1 = Most Energy-Expensive
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?
- 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
- David E. Dismukes
Ph.D. – Professor, Executive Director, and Director of Policy Analysis at the Center for Energy Studies, Louisiana State University
Read More
- Joseph Tainter
Ph.D. – Professor, Environment & Society, S.J. & Jessie E. Quinney College of Natural Resources, Utah State University
Read More
- Robert Goodof
MBA - Adjunct Lecturer, Babson College
Read More
- Carol A. Dahl
Ph.D. – Research Professor, Professor Emeritus, Mineral and Energy Economics Program, Economics and Business, Colorado School of Mines
Read More
- Eric Smith
MBA – Professor of Practice, Freeman School of Business, Tulane University and Assistant Director, Tulane Energy Institute
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, Insurance Institute for Highway Safety and The Regents of the University of Michigan.
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