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% of families’ total after-tax income, with the poorest Americans, or 25 million households, paying the highest of that range. Lower energy prices don’t necessarily equate to savings, though. Where we live and how much energy we use also factor into the equation. 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 | $738 | $114 (41) | $68 (27) | $326 (1) | $230 (1) |
| 2 | Alaska | $625 | $154 (6) | $157 (2) | $174 (39) | $139 (12) |
| 3 | North Dakota | $611 | $137 (21) | $52 (47) | $227 (7) | $196 (3) |
| 4 | Connecticut | $611 | $177 (1) | $120 (3) | $183 (37) | $131 (13) |
| 5 | Massachusetts | $577 | $141 (16) | $107 (4) | $170 (42) | $159 (6) |
| 6 | Oklahoma | $576 | $131 (28) | $60 (35) | $222 (9) | $162 (4) |
| 7 | Vermont | $571 | $134 (25) | $91 (8) | $202 (21) | $145 (10) |
| 8 | New Hampshire | $550 | $141 (14) | $81 (12) | $173 (40) | $155 (7) |
| 9 | Indiana | $550 | $135 (22) | $62 (33) | $254 (3) | $99 (26) |
| 10 | West Virginia | $537 | $146 (11) | $64 (32) | $213 (13) | $113 (20) |
| 11 | Rhode Island | $533 | $139 (19) | $103 (7) | $145 (49) | $146 (9) |
| 12 | Utah | $532 | $91 (50) | $62 (34) | $217 (12) | $162 (5) |
| 13 | Maine | $516 | $121 (35) | $83 (10) | $195 (25) | $118 (18) |
| 14 | South Dakota | $516 | $143 (13) | $48 (50) | $207 (19) | $118 (16) |
| 15 | Virginia | $514 | $145 (12) | $76 (15) | $188 (28) | $105 (24) |
| 16 | Colorado | $509 | $99 (49) | $56 (42) | $157 (46) | $197 (2) |
| 17 | Iowa | $503 | $119 (37) | $54 (46) | $184 (36) | $147 (8) |
| 18 | Montana | $503 | $116 (38) | $57 (40) | $212 (15) | $118 (17) |
| 19 | Maryland | $499 | $133 (27) | $87 (9) | $172 (41) | $107 (22) |
| 20 | New Jersey | $492 | $121 (34) | $76 (16) | $166 (44) | $129 (14) |
| 21 | Minnesota | $491 | $114 (43) | $60 (37) | $175 (38) | $142 (11) |
| 22 | Alabama | $490 | $174 (2) | $74 (19) | $237 (4) | $6 (48) |
| 23 | Ohio | $486 | $114 (42) | $70 (24) | $186 (34) | $116 (19) |
| 24 | Hawaii | $484 | $154 (7) | $158 (1) | $170 (43) | $2 (49) |
| 25 | South Carolina | $482 | $167 (3) | $73 (20) | $193 (26) | $48 (34) |
| 26 | Wisconsin | $481 | $115 (39) | $56 (44) | $190 (27) | $120 (15) |
| 27 | Georgia | $480 | $152 (8) | $104 (6) | $209 (17) | $15 (42) |
| 28 | Mississippi | $479 | $150 (9) | $59 (38) | $269 (2) | $0 (50) |
| 29 | Michigan | $477 | $122 (33) | $69 (26) | $184 (35) | $102 (25) |
| 30 | Pennsylvania | $469 | $123 (32) | $81 (13) | $154 (47) | $112 (21) |
| 31 | Kentucky | $467 | $134 (23) | $66 (29) | $226 (8) | $40 (35) |
| 32 | Idaho | $465 | $115 (40) | $51 (49) | $209 (18) | $90 (28) |
| 33 | Missouri | $458 | $134 (24) | $71 (22) | $234 (5) | $19 (41) |
| 34 | North Carolina | $457 | $138 (20) | $72 (21) | $199 (22) | $48 (33) |
| 35 | Tennessee | $449 | $140 (18) | $59 (39) | $220 (11) | $31 (36) |
| 36 | Nevada | $449 | $120 (36) | $60 (36) | $211 (16) | $57 (32) |
| 37 | Washington | $449 | $104 (46) | $80 (14) | $158 (45) | $106 (23) |
| 38 | Florida | $445 | $158 (4) | $82 (11) | $199 (23) | $6 (47) |
| 39 | Delaware | $445 | $141 (15) | $75 (17) | $151 (48) | $78 (30) |
| 40 | Illinois | $441 | $103 (47) | $70 (25) | $186 (32) | $82 (29) |
| 41 | New York | $441 | $108 (45) | $106 (5) | $136 (50) | $91 (27) |
| 42 | Oregon | $431 | $111 (44) | $67 (28) | $187 (31) | $66 (31) |
| 43 | Arkansas | $430 | $133 (26) | $70 (23) | $213 (14) | $14 (45) |
| 44 | California | $430 | $123 (30) | $65 (31) | $221 (10) | $20 (40) |
| 45 | Louisiana | $419 | $140 (17) | $56 (43) | $196 (24) | $27 (37) |
| 46 | Texas | $416 | $154 (5) | $56 (41) | $206 (20) | $0 (51) |
| 47 | Arizona | $403 | $150 (10) | $52 (48) | $187 (30) | $14 (43) |
| 48 | Kansas | $396 | $127 (29) | $66 (30) | $188 (29) | $14 (44) |
| 49 | Nebraska | $390 | $123 (31) | $55 (45) | $186 (33) | $26 (38) |
| 50 | New Mexico | $377 | $99 (48) | $43 (51) | $229 (6) | $7 (46) |
| 51 | District of Columbia | $277 | $90 (51) | $74 (18) | $93 (51) | $20 (39) |
*No. 1 = Most Energy-Expensive
- Highest
- 1. Hawaii
- 2. Connecticut
- 3. Alaska
- 4. Rhode Island
- 5. Massachusetts
- Lowest
- 47. Arkansas
- 48. Oklahoma
- 49. Idaho
- 50. Washington
- 51. Louisiana
- Highest
- 1. Louisiana
- 2. Florida
- 3. Alabama
- 4. Mississippi
- 5. Texas
- Lowest
- 47. Massachusetts
- 48. Rhode Island
- 49. California
- 50. New York
- 51. Hawaii
- Highest
- 1. Hawaii
- 2. Florida
- 3. Alabama
- 4. Georgia
- 5. Rhode Island
- Lowest
- T-46. Colorado
- T-46. Montana
- 48. South Dakota
- 49. New Mexico
- 50. North Dakota
- 51. Idaho
- Highest
- 1. Alaska
- 2. Illinois
- 3. Michigan
- 4. New York
- 5. Connecticut
- Lowest
- 47. Louisiana
- 48. California
- 49. Hawaii
- 50. Arizona
- 51. Florida
- Highest
- 1. California
- 2. Hawaii
- 3. Nevada
- 4. Washington
- 5. Alaska
- Lowest
- T-46. Missouri
- T-46. Mississippi
- 48. Georgia
- 49. Kansas
- 50. Arkansas
- 51. Oklahoma
- Highest
- 1. Wyoming
- 2. Mississippi
- 3. Missouri
- 4. Indiana
- 5. Alabama
- Lowest
- 47. Hawaii
- 48. Rhode Island
- 49. Washington
- 50. New York
- 51. District of Columbia
- Highest
- 1. Maryland
- 2. Delaware
- 3. New York
- 4. New Jersey
- 5. Minnesota
- Lowest
- 47. Kentucky
- 48. Michigan
- 49. Wisconsin
- 50. Nebraska
- 51. Iowa
- Highest
- 1. Wyoming
- 2. Colorado
- 3. North Dakota
- 4. Iowa
- 5. Massachusetts
- Lowest
- 47. Florida
- 48. Alabama
- 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?
- 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
Prince Sultan bin Abdulaziz Professor of Energy, Resources and Environment; Founding Director, Initiative for Sustainable Energy Policy (ISEP); Director, Master of Arts in Sustainable Energy (MASE); Leadership Council, Ralph O'Connor Sustainable Energy Institute (ROSEI); Co-Director, Healthy Environments, Alliance for a Healthier World (AHW) – Johns Hopkins School of Advanced International Studies (SAIS)
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Interim Dean, College of Business and Associate Professor, Department of Economics – University of Wyoming
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Ph.D., – Associate Professor & Director of Undergraduate Programs – Georgia Institute of Technology, School of Economics
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Ph.D., PE – Extension Engineer and Professor, Department of Agricultural and Biosystems Engineering – North Dakota State University
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JD – Director of Energy Management Programs, Jindal School of Management – The University of Texas at Dallas
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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, National Highway Traffic Safety Administration, and the United States Environmental Protection Agency.
