If you are interested in electricity costs for your home or business in deregulated markets, this is the resource for you. In this article, we discuss the true cost of electricity in deregulated markets, how finding a lower electricity cost for your business can be beneficial, and the average electric rates per state.

Energy Cost In Deregulated Energy Markets: Is It Cheaper?

There is a heated debate about whether or not energy deregulation is good for the economy. In some states, regulators argue that deregulation has had a negative impact on its consumers and residents. In other deregulated states, the opening up of their electricity markets has had a positive impact on the economy. The real question, however, is whether energy costs in deregulated markets are actually cheaper.

In order to answer this question fairly, we need to look at different types of customers. When evaluating commercial, industrial, and governmental customers, energy costs in deregulated markets are often less expensive when compared to local utility costs. These types of customers typically use sophisticated energy brokers that help them plan purchases and renew contracts on time. These customers are often very savvy and only sign up for rates if they are less expensive than the utility default price to compare.

Residential customers, on the other hand, sometimes end up paying more than the local utility rate in deregulated states. The main reason for this phenomenon is that residential customers often forget to renew their energy contracts on time, and often drop to month-to-month variable rates. These post-contract rates are often 100-200% higher than the local utility rates and can often skew the numbers.

Average Cost of Electricity Rates By State (Regulated and Deregulated)

If you are wondering whether you have a good electricity rate for your home or business, it’s important to understand the average cost of electricity in your state. The table below shows the average cost of electricity rates by state, as of 2022, according to EIA.gov:

State Average retail price (cents/kWh)
Alabama 10.18
Alaska 20.02
Arizona 10.73
Arkansas 9.1
California 19.65
Colorado 10.9
Connecticut 18.32
Delaware 10.5
District of Columbia 12.81
Florida 10.67
Georgia 10.43
Hawaii 30.31
Idaho 8.17
Illinois 10.14
Indiana 10.36
Iowa 9.13
Kansas 10.47
Kentucky 9.12
Louisiana 8.82
Maine 13.96
Maryland 11.48
Massachusetts 19.06
Michigan 12.93
Minnesota 11.08
Mississippi 9.5
Missouri 9.85
Montana 9.5
Nebraska 8.84
Nevada 8.58
New Hampshire 17.37
New Jersey 14.01
New Mexico 9.79
New York 16.11
North Carolina 9.29
North Dakota 8.65
Ohio 9.76
Oklahoma 8.52
Oregon 8.95
Pennsylvania 9.97
Rhode Island 18.44
South Carolina 9.96
South Dakota 10.43
Tennessee 9.78
Texas 9.14
Utah 8.34
Vermont 16.34
Virginia 9.14
Washington 8.75
West Virginia 8.87
Wisconsin 11.01
Wyoming 8.25

How You Can Benefit From Lower Energy Rates

For both residences and businesses, the cost of energy is a determining factor in the overall health of the economy. Utilities like electricity and natural gas are essential to living and operating our businesses, and the cost of energy plays a direct role in our financial well-being.

When you are able to secure a lower rate for energy at your business, the savings you experience directly impact your bottom line. As a homeowner, the difference between 10 cents per kWh and 8 cents per kWh could mean an extra $20 per month in your pocket. Although this does not seem monumental, signing up for a cheaper electric rate could pay for your Netflix subscription each month!

As a large industrial operator, your energy costs directly impact your cost of goods. If you are using electricity or natural gas in your production process, then lower rates mean that you can make your goods for less and earn more profits. Hiring an energy broker can be very beneficial to achieving your financial goals when it comes to energy costs.

Are You Looking For Lower Electric Costs?

Overall, lower energy costs are very beneficial for both businesses and consumers. However, finding the lowest electricity costs in your area can be challenging. Using the services of a trusted energy broker could provide you with many perks. In fact, a professional energy broker will be able to help you find the lowest-cost energy for your home or business. If you are looking for ways to lower your energy costs, contact us today to speak with an expert energy advisor.

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