In the U.S. economy and modern life, electricity plays an essential role. With the role electricity power serves, many people are opting to using it. People buy electricity at different rates that differ from one state to the other and from different times of the year to the other. The electricity rates are definable as the cost per unit of electricity you can buy from a specified utility. The rates may be affected by the changing weather conditions, inflations, the cost of fuel, regulations, availability of other power sources, and other factors that we shall discuss here. The electricity rate variation is important as it keeps balance at different times of the year between the supplier and the consumer. When the rate charges rise, as a consumer you, may evade the high costs by opting for backup batteries.
In the U.S., the electricity rates differ from one state to the other because of many factors that we shall discuss here in this article.
Overview of Electricity Rates in the U.S. 2023
Electricity rates usually vary across the United States in 2023. Generally, states with higher electricity rates are located in the Northeast, while states with lower electricity rates are located in the Midwest and South. In 2023, the average U.S. residential electricity rate is 13.81 cents per kilowatt-hour (kWh). The states with the highest average residential electricity rates are Hawaii (29.62 cents/kWh), New York (19.46 cents/kWh), and Connecticut (17.53 cents/kWh). The states with the lowest average residential electricity rates are Louisiana (10.47 cents/kWh), Arkansas (10.45 cents/kWh), and Washington (10.29 cents/kWh). Additionally, some states have deregulated electricity markets, which allow customers to choose their electricity provider and rate plan. These states include Texas, Illinois, Ohio, and New Jersey.
Let's have a glimpse of the electricity rates in other U.S. states;
Electricity Rates in Illinois
The electricity rates per kWh vary depending on the utility provider and customer class. As of the most recent data, residential customers paid an average rate of $0.12 to $0.16 per kWh, while commercial customers faced rates ranging from $0.09 to $0.15 per kWh. Industrial customers had varying rates between $0.06 and $0.13 per kWh.
Factors Affecting Electricity Rates in Illinois
Fuel is a major factor in electricity rates, and the increase in fuel costs has caused electricity rates to spike in Illinois. The increase in fuel costs is due to a variety of factors, including rising international oil prices, volatile natural gas prices, and rising costs associated with delivering power to homes and businesses.
Many utilities in Illinois rely heavily on natural gas to generate electricity, so when natural gas prices rise, so do electricity rates. Additionally, the cost of coal, which is used to generate electricity in Illinois, has also increased. As these fuel prices rise, so do the costs for utilities to generate electricity. This cost increase is then passed on to customers in the form of high electricity rates.
The primary cause of electricity rate spikes in Illinois is the implementation of the low-carbon Future Energy Jobs Act (FEJA) of 2016. FEJA is a statewide energy generation and efficiency program that calls for considerable investments in renewable energy sources, energy efficiency measures, job training and other initiatives. This, in turn, requires utilities to purchase alternative energy–such as solar and wind electricity — at a significantly higher cost than traditional energy sources, such as coal and natural gas, leading to higher electricity rates.
Other factors that have led to the changing electricity rates in Illinois include; The introduction of the Clean Energy Jobs Act in 2021, which required all electricity providers in Illinois to transition to 100% renewable energy by 2030, The 2021 passage of the Energy Modernization Act which removed consumer protections and allowed utilities to add additional fees and rate increases for customers, and the 2021 enactment of the Illinois Commerce Commission's Energy Infrastructure Modernization Act which allowed utilities to recoup costs associated with infrastructure upgrades by passing the costs onto customers.
Electricity Rates in Maryland
Maryland exhibits slightly higher electricity rates compared to Illinois. Residential customers in Maryland typically paid around $0.12 to $0.18 per kWh, while commercial rates ranged from $0.09 to $0.16 per kWh. Industrial rates varied from $0.07 to $0.14 per kWh.
Factors Affecting Electricity Rates in Maryland
On Tuesday, the electricity prices in Maryland spiked after a series of events caused power outages throughout the state. The outages began when a severe thunderstorm caused power lines to be knocked down in several areas. This caused a disruption in the power supply, leading to rolling blackouts in some areas. The power outages were further exacerbated by a fire at a power substation in Baltimore County. The fire caused the substation to shut down, resulting in a further disruption of power to the area.
The combination of the storm and the fire caused a spike in electricity prices in the state. The Maryland Public Service Commission (PSC) reported that electricity prices rose to as high as $9.50 per kilowatt-hour, more than three times the average price. The PSC has urged customers to conserve electricity and switch to alternative sources of energy, such as solar or wind power, in order to reduce their electricity costs.
The PSC has also asked customers to contact their electricity providers to inquire about possible discounts or rebates on their bills. While the power outages have been restored in most affected areas, the PSC has warned that the electricity prices may remain high until the system is able to recover fully.
Electricity Rates in Ohio
Electricity rates in Ohio are generally lower than in Illinois and Maryland. Residential customers paid an average rate of $0.09 to $0.13 per kWh, while commercial rates ranged from $0.08 to $0.12 per kWh. Industrial rates varied between $0.06 and $0.10 per kWh.
Factors Affecting Electricity Rates in Ohio
The average cost of regular gasoline in Ohio currently is $2.53 per gallon. This fuel cost affects electricity rates in Ohio because electricity is generated from coal, natural gas, or oil.
Government regulations also are in play. The Ohio Supreme Court approved the Ohio Power Siting Board's (OPSB) approval of the Buckeye Wind Farm project in Vinton County. The project will add over 200 wind turbines to the local landscape, providing clean energy for the region.
The implementation of the Clean Air Act by the Environmental Protection Agency (EPA) requires many businesses and factories in Ohio to upgrade their facilities to reduce their environmental impacts, resulting in higher electricity costs.
The closure of several coal-fired power plants in Ohio is part of the state's commitment to reducing carbon emissions, which has reduced the available power generation capacity in the state, leading to an overall increase in electricity rates.
The customer reaction to the spike in electricity rates in Ohio has generally been negative. Many customers are frustrated that their electricity bills have been increasing while they are already struggling to make ends meet. Many customers are also concerned about the long-term environmental impacts of the state's commitment to reducing carbon emissions and the additional costs associated with the Buckeye Wind Farm project.
Electricity Rates in Florida
Electricity rates in Florida vary by provider. As per the U.S. Energy Information Administration, Florida residential customers pay an average of 11.02 cents per kilowatt-hour (kWh) currently, which is slightly higher than the national average of 10.68 cents/kWh.
Factors Affecting Electricity Rates in Florida
Several factors come into play to affect the electricity rates in Florida. First, the hurricane damaged electric infrastructure across Florida and caused power outages for over 7 million people. It also disrupted the fuel supply chain, increasing costs for power companies.
As the population and demand for electricity in Florida increase, the state's power plants are aging and unable to keep up with the extra load. This causes them to become less efficient and increase the cost of electricity.
Federal and state environmental regulations require power companies to upgrade their plants to reduce emissions and conserve energy. This leads to increased costs, which are then passed on to customers in the form of higher electricity prices.
Electricity Rates in Alabama
Alabama has some of the lowest electricity rates. Residential customers in Alabama paid an average rate of $0.09 to $0.11 per kWh, while commercial rates ranged from $0.07 to $0.10 per kWh. Industrial rates varied between $0.05 and $0.08 per kWh.
Factors Affecting Electricity Rates in Alabama
Electricity rates in Alabama in 2023 will likely vary based on numerous factors, such as changes in fuel prices, changes in the cost of infrastructure maintenance, changes in demand, and changes in taxes and fees. Additionally, the availability of renewable energy sources such as wind and solar and the investment in energy efficiency measures may also affect electricity rates.
Being Affected by Power Outages? Rising Power Rates? Try BLUETTI Home Battery Backup
It is evident that the electricity rates and bills are rising, and with the inconveniences of power outages, you need a home backup generator. When it comes to home power backup, BLUETTI is an excellent option. Unlike a traditional battery backup, BLUETTI offers a safer and more reliable source of power backup to keep your home running in the event of an emergency. BLUETTI offers a wide range of features, including clean, quiet, and long-lasting power, advanced safety features, and a variety of power output options. With BLUETTI, you can have peace of mind knowing that your home is always prepared for a power outage.
A home backup power from BLUETTI is necessary because of this and many other reasons like:
Avoiding Bad Odors and Noise – if you want a backup power supply in your home without experiencing bad odors and noise, then the BLUETTI Home Backup Power batteries are the choice for you. These backup batteries work at low noise levels and do not produce any smell like other home power batteries.
Powering Essential Home Appliances – to avoid food from spoiling, the BLUETTI home backup power batteries got you covered. There is instability of electricity supply in different states in the U.S., and therefore you need the BLUETTI backup power to make sure that your home appliances are powered. You need to power appliances like refrigerators to prevent your food from spoiling.
The BLUETTI home power backup batteries can also assist you in powering air conditioners for fresh air in the living area, coffee makers, cooking in the kitchen, powering respirators for the elderly, charging mobile phones, and many other appliances.
Avoiding 30% Power Loss – The BLUETTI backup is highly efficient and does not let any power loss. Your home appliances require Alternating Current to operate, and therefore the Direct Current produced by backup batteries should be converted. There is a 30% loss when converting between alternating current and direct current, so you can only use 70% of it when you use electricity. You need to buy our All-in-one BLUETTI energy storage system, which can convert up to 95% hence no loss of power.
