The 2025 National Number, and the State Spread Behind It
The US annual average retail electricity price for residential customers was 17.30 cents per kilowatt-hour in 2025. That single number hides a wide state-level range: North Dakota posted the lowest 2025 rate at 8.20 cents per kilowatt-hour, and Hawaii posted the highest at 35.72 cents, more than four times North Dakota’s rate. The broader all-sector average, which blends residential with commercial and industrial customers, was lower at 13.63 cents per kilowatt-hour, a reminder that residential customers typically pay a premium over the blended figure most casually cited.
Why Rates Have Climbed 13% Since 2022
The US average electricity price rose 13% in nominal terms between 2022 and 2025. The Energy Information Administration names the driver directly: utilities have increased capital investment to replace and upgrade aging generation and delivery infrastructure, and utility spending on distribution has now surpassed spending on transmission and production. That is an infrastructure story, not a fuel-cost story, part of why the EIA expects prices to keep outpacing inflation through 2026 rather than easing once any single input cost falls. US consumers spent an average of $1,760 on electricity in 2023, the most recent year EIA has published that specific figure.
What the Most Recent Forecasts Say About 2026
EIA’s August 2024 Short-Term Energy Outlook forecast a roughly 1% rise in residential electricity prices for 2024 itself, the slowest year-over-year growth rate since 2020, a reminder that the increase has not been a straight line every year. Looking ahead, a 2025-dated industry summary citing EIA’s Short-Term Energy Outlook projects retail electricity prices rising 13% to 18% depending on the region between 2025 and 2026, with the Pacific, Middle Atlantic, and New England regions, already above the national average, named as likely to see above-average increases while already-low-rate regions are expected to rise less.
The Numbers
The US annual average retail electricity price for residential customers was 17.30 cents per kilowatt-hour in 2025; the broader all-sector average was 13.63 cents per kilowatt-hour.
EIA, Electricity explained: factors affecting electricity prices
State-level 2025 residential rates ranged from 8.20 cents per kilowatt-hour in North Dakota to 35.72 cents per kilowatt-hour in Hawaii.
The US average electricity price rose 13% in nominal terms from 2022 to 2025, driven by utilities’ rising capital investment in aging generation and delivery infrastructure; distribution spending has now surpassed spending on transmission and production.
EIA, Today in Energy, U.S. electricity prices continue steady increase
US consumers spent an average of $1,760 on electricity in 2023, the most recent year EIA has published that household figure; prices are expected to keep outpacing inflation through 2026.
EIA’s August 2024 Short-Term Energy Outlook forecast roughly 1% residential price growth for 2024, the slowest year-over-year rate since 2020; a 2025-dated industry summary citing EIA’s more recent outlook projects 13% to 18% regional increases from 2025 to 2026.
Sources
The external data in this article draws on the sources below. Figures described in the text as estimates or industry triangulations are directional and are not attributed to a single dataset.
- EIA, Electricity explained: factors affecting electricity prices
- EIA, Today in Energy, U.S. electricity prices continue steady increase
- EUCI, electricity demand to set a record as rates for residential customers continue to rise, citing EIA