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Commercial Electricity Rates by State (2026): Cheapest to Most Expensive
By Christopher Burg • Last updated August 2, 2026
Commercial electricity rates vary widely by state. The average U.S. business pays about 12.75¢ per kWh, but commercial electricity rates range more than 5× — from 7.19¢ in North Dakota to 38.18¢ in Hawaii. This tracker ranks the commercial electricity rate in every state using the latest U.S. Energy Information Administration (EIA) data, flags where businesses can shop for a lower supply rate, and explains why commercial electricity rates differ so much from one state to the next.
- U.S. commercial average: 12.75¢/kWh (EIA).
- Cheapest 5: North Dakota (7.19¢), Nebraska (8.39¢), Texas (8.55¢), Virginia (8.72¢), Oklahoma (8.92¢).
- Most expensive 5: Hawaii (38.18¢), California (25.54¢), Alaska (21.57¢), Connecticut (21.21¢), Rhode Island (21.09¢).
- ⚡ = retail choice — states where businesses can shop commercial electricity rates with a competitive supplier.
- Illinois is below average today at 11.81¢, but ComEd’s grid plan signals upward pressure (below).
What are commercial electricity rates? Commercial electricity rates are the average price a business pays per kilowatt-hour (kWh) — a blend of the supply cost (generating the power) and the delivery cost (moving it over poles and wires). Businesses typically use more power than homes but less than heavy industry, so commercial electricity rates sit between residential and industrial rates in most states.
Illinois & ComEd: why moderate rates may not stay that way
Illinois commercial power is a relative bargain today at 11.81¢/kWh — below the U.S. average. But in January 2026, ComEd filed a $15.3 billion, four-year grid plan with the Illinois Commerce Commission to meet surging demand from data centers, EV adoption, and electrification — with data centers alone driving roughly half of new load across 50+ substations. Grid investment at that scale is recovered through delivery charges, so Illinois businesses should treat today’s below-average commercial electricity rates as a window to lock in favorable supply terms. (Sources: WTTW News, Jan 23, 2026; ComEd filing with the ICC.)
Why commercial electricity rates vary so much by state
Four forces drive the 5× spread in commercial electricity rates. Fuel mix matters most — states rich in natural gas, hydro, or wind (North Dakota, Washington, Texas) generate power cheaply, while states dependent on imported fuel (Hawaii burns oil) pay a premium. Transmission and geography add cost in remote or islanded grids like Alaska and Hawaii. Policy and climate goals lift rates where utilities are funding renewable buildouts and grid hardening, which is part of why California and the Northeast top the table. Finally, market structure plays a role: in deregulated states, competition among suppliers can hold commercial electricity rates down, while in fully regulated states a single utility sets the price. Understanding which of these applies to your state tells you whether shopping will actually move your bill.
Commercial electricity rates by state (ranked cheapest to most expensive)
| Rank | State | ¢/kWh | vs U.S. avg |
|---|---|---|---|
| 1 | North Dakota | 7.19¢ | −5.56 |
| 2 | Nebraska | 8.39¢ | −4.36 |
| 3 | Texas ⚡ | 8.55¢ | −4.20 |
| 4 | Virginia | 8.72¢ | −4.03 |
| 5 | Oklahoma | 8.92¢ | −3.83 |
| 6 | Idaho | 9.17¢ | −3.58 |
| 7 | Wyoming | 9.27¢ | −3.48 |
| 8 | Utah | 9.39¢ | −3.36 |
| 9 | Washington | 9.99¢ | −2.76 |
| 10 | Oregon | 10.11¢ | −2.64 |
| 11 | Nevada | 10.19¢ | −2.56 |
| 12 | Iowa | 10.22¢ | −2.53 |
| 13 | Arkansas | 10.24¢ | −2.51 |
| 14 | Missouri | 10.26¢ | −2.49 |
| 15 | Louisiana | 10.46¢ | −2.29 |
| 16 | New Mexico | 10.54¢ | −2.21 |
| 17 | South Dakota | 10.55¢ | −2.20 |
| 18 | North Carolina | 10.56¢ | −2.19 |
| 19 | South Carolina | 10.64¢ | −2.11 |
| 20 | Ohio ⚡ | 10.66¢ | −2.09 |
| 21 | Georgia | 10.87¢ | −1.88 |
| 22 | Florida | 10.99¢ | −1.76 |
| 23 | Pennsylvania ⚡ | 11.03¢ | −1.72 |
| 24 | Kansas | 11.19¢ | −1.56 |
| 25 | Kentucky | 11.50¢ | −1.25 |
| 26 | West Virginia | 11.62¢ | −1.13 |
| 27 | Colorado | 11.71¢ | −1.04 |
| 28 | Illinois ⚡ | 11.81¢ | −0.94 |
| 29 | Montana | 11.87¢ | −0.88 |
| 30 | Tennessee | 12.05¢ | −0.70 |
| 31 | Minnesota | 12.15¢ | −0.60 |
| 32 | Delaware ⚡ | 12.20¢ | −0.55 |
| 33 | Arizona | 12.23¢ | −0.52 |
| 34 | Mississippi | 12.32¢ | −0.43 |
| 35 | Indiana | 12.44¢ | −0.31 |
| 36 | Wisconsin | 12.63¢ | −0.12 |
| 37 | Maryland ⚡ | 12.96¢ | +0.21 |
| 38 | Alabama | 13.64¢ | +0.89 |
| 39 | Michigan ⚡ | 14.01¢ | +1.26 |
| 40 | New Jersey ⚡ | 14.64¢ | +1.89 |
| 41 | District of Columbia ⚡ | 17.07¢ | +4.32 |
| 42 | Maine ⚡ | 18.22¢ | +5.47 |
| 43 | New York ⚡ | 18.77¢ | +6.02 |
| 44 | Vermont | 18.89¢ | +6.14 |
| 45 | New Hampshire ⚡ | 19.40¢ | +6.65 |
| 46 | Massachusetts ⚡ | 20.90¢ | +8.15 |
| 47 | Rhode Island ⚡ | 21.09¢ | +8.34 |
| 48 | Connecticut ⚡ | 21.21¢ | +8.46 |
| 49 | Alaska | 21.57¢ | +8.82 |
| 50 | California | 25.54¢ | +12.79 |
| 51 | Hawaii | 38.18¢ | +25.43 |
⚡ = deregulated retail-choice market for commercial customers. Prices are average commercial-sector rates; your actual rate depends on utility, supplier, usage, and contract.
Cheapest and most expensive states, explained
The cheapest commercial electricity rates cluster in the Plains and energy-producing South: North Dakota (7.19¢), Nebraska (8.39¢), and Texas (8.55¢) pair abundant local generation with fewer imported-fuel costs — and Texas adds fierce retail competition on its ERCOT grid (ERCOT). At the other end, Hawaii (38.18¢) pays nearly 3× the national average because it burns imported oil for much of its power, while California (25.54¢) and the New England states carry high rates from wildfire/grid-hardening costs and aggressive clean-energy mandates. For a multi-site business, these gaps mean the same operation can face wildly different commercial electricity rates depending on where each location sits.
Deregulated vs regulated: how it affects your commercial electricity rates
In the 15 retail-choice states marked ⚡, businesses aren’t locked into the default utility — you can compare competitive suppliers and lock a fixed rate on the supply portion of the bill. That matters most when grid-investment pressure (like ComEd’s) points delivery charges upward: even if you can’t control delivery, you can hedge supply. In regulated states, your levers are efficiency, demand management, and rate-schedule optimization rather than supplier choice. Either way, knowing your state’s status is the first step to controlling your commercial electricity rates.
Data-center demand is reshaping commercial electricity rates
The biggest force on future commercial electricity rates is load growth. After two decades of flat demand, data centers, EV charging, and electrified heating are driving the fastest load increases in a generation — and utilities are filing multi-billion-dollar grid plans (ComEd’s $15.3B is one of several nationwide) to keep up. Because those investments are recovered through delivery charges over years, businesses in high-growth grids should expect upward pressure on commercial electricity rates even where wholesale power stays cheap. Locking in supply terms and improving efficiency now is the hedge.
How to lower your commercial electricity rates
Start with the biggest lever your state allows: in deregulated markets, shop competitive suppliers and lock a fixed rate before renewals; in regulated markets, audit your rate schedule and shift usage off peak. Everywhere, reduce demand charges with efficiency upgrades, and re-quote at every contract expiration — the supplier mix and pricing change constantly. For multi-site operators, benchmark each location against the state averages above so you know which sites are overpaying.
Methodology
Rates are the average price of electricity to commercial customers by state, from the U.S. Energy Information Administration (EIA), “Electricity: Sales, Revenue, and Average Price” (latest full-year data). We report EIA’s figures unchanged, rank them, and compare each state to the national commercial average. This is a living tracker — we refresh these commercial electricity rates when EIA publishes newer figures. State grid-plan details are drawn from utility filings (e.g., ComEd with the Illinois Commerce Commission).
Frequently asked questions
What are commercial electricity rates?
Commercial electricity rates are the average price businesses pay per kilowatt-hour (kWh), blending the cost of generation/supply and delivery. The U.S. commercial average is about 12.75¢/kWh, versus 7.19¢ in North Dakota and 38.18¢ in Hawaii.
Which states have the cheapest commercial electricity rates?
North Dakota (7.19¢), Nebraska (8.39¢), Texas (8.55¢), Virginia (8.72¢), and Oklahoma (8.92¢) have the lowest commercial electricity rates.
Which states have the most expensive commercial electricity rates?
Hawaii (38.18¢), California (25.54¢), Alaska (21.57¢), Connecticut (21.21¢), and Rhode Island (21.09¢) have the highest commercial electricity rates.
Can businesses shop for lower commercial electricity rates?
Yes, in deregulated retail-choice states (marked ⚡), commercial customers can shop competitive suppliers for the supply portion of the bill. In regulated states, the local utility is the only option.
What are commercial electricity rates in Illinois?
About 11.81¢/kWh, below the U.S. average, though ComEd’s proposed $15.3 billion grid plan signals upward pressure on delivery charges ahead.
Why are commercial electricity rates rising?
Data-center demand, electrification, and large grid-investment plans are pushing delivery costs up in several states, even where generation prices are stable.
Keep going
- Business electricity: compare commercial plans & rates
- Business internet cost by provider & speed
- Find your electric company by address
- Best electricity providers in Ohio
- New York energy suppliers compared
Sources
- U.S. EIA — Electricity: Sales, Revenue, and Average Price
- ComEd — Illinois utility & Illinois Commerce Commission (grid-plan filing)
- ERCOT — Texas grid operator
- WTTW News — ComEd $15.3B grid plan
