2026 Commercial Electricity Rates: State-by-State Snapshot
The following table presents average commercial electricity rates for the 20 most expensive and 10 least expensive states, based on EIA Electric Power Monthly data (Table 5.6.A, January 2026 preliminary). Figures represent average revenue per kWh across all commercial rate classes.
| State | Avg Commercial Rate | vs National Avg | Market Type |
|---|---|---|---|
| Hawaii | 38.79¢ | +175% | Regulated |
| Connecticut | 20.82¢ | +47% | Deregulated |
| California | 20.51¢ | +45% | Limited Choice |
| Alaska | 20.14¢ | +43% | Regulated |
| Massachusetts | 19.87¢ | +41% | Deregulated |
| New York | 19.03¢ | +35% | Deregulated |
| New Hampshire | 18.21¢ | +29% | Deregulated |
| Rhode Island | 17.95¢ | +27% | Deregulated |
| Vermont | 17.42¢ | +23% | Regulated |
| New Jersey | 15.61¢ | +11% | Deregulated |
| Maine | 15.38¢ | +9% | Deregulated |
| Maryland | 14.89¢ | +5% | Deregulated |
| National Average | 14.12¢ | — | — |
| Pennsylvania | 13.74¢ | -3% | Deregulated |
| Ohio | 12.94¢ | -8% | Deregulated |
| Illinois | 12.41¢ | -12% | Deregulated |
| Texas | 11.68¢ | -17% | Deregulated |
| Louisiana | 11.02¢ | -22% | Regulated |
| Idaho | 8.19¢ | -42% | Regulated |
| Utah | 7.88¢ | -44% | Regulated |
| Oklahoma | 7.62¢ | -46% | Regulated |
| North Dakota | 7.23¢ | -49% | Regulated |
Source: EIA Electric Power Monthly, Table 5.6.A (January 2026 preliminary). Rates represent average revenue per kWh across all commercial customers.
Why Commercial Rates Are Rising in 2026
The 6.4% national year-over-year increase in commercial electricity costs is driven by three converging structural forces:
- Data center capacity demand: PJM’s 2026/27 Base Residual Auction cleared at a record $329.17/MW-day — the auction price cap — driven by 5,400 MW of new data center load. Capacity costs account for 20–30% of a typical commercial supply bill; this single input alone is estimated to add 10–20% to bills in 13 PJM states starting June 1, 2026.
- Natural gas price volatility: Henry Hub spot remains elevated near $3.13–$3.37/MMBtu, and gas sets the marginal clearing price in most RTO/ISO markets. The ongoing global LNG market disruption continues to exert upward pressure on domestic prices.
- Grid infrastructure investment: Transmission buildout to accommodate data centers and renewable integration is being socialized across ratepayers. MISO alone unveiled an $8.8 billion MTEP 26 plan with $3.1B earmarked for data center load growth.
Deregulated vs. Regulated Markets: What It Means for Your Rate
Nineteen jurisdictions (18 states + DC) offer some form of retail electricity choice, allowing commercial buyers to shop for competitive supply rates. However, market structure dramatically affects your options:
- Fully deregulated (active competition): Texas (ERCOT territory), Pennsylvania, Ohio, Illinois, and Maryland offer robust retail markets with dozens of competing suppliers. Commercial buyers in these states can often negotiate rates 5–15% below the default utility rate through fixed-price or indexed contracts.
- Deregulated with constraints: Connecticut, Massachusetts, New Hampshire, and Rhode Island offer choice but have fewer competitive suppliers. ISO-NE’s $921M DASI cost overrun is adding non-bypassable charges that erode the savings from competitive supply.
- Limited or capped choice: California restricts Direct Access; Michigan caps competitive supply at 10% of utility load (waitlisted); Virginia generally limits choice to loads >5 MW.
- Regulated (no choice): States like North Dakota, Louisiana, Idaho, and Utah have low rates precisely because they are vertically integrated — but commercial buyers cannot shop for alternatives when rates rise.
Regional Market Drivers: What’s Moving Rates in Your ISO/RTO
PJM (PA, NJ, MD, OH, VA, IL, IN, DE — 13 states + DC)
The $329/MW-day capacity price taking effect June 2026 is the single largest near-term rate driver for commercial buyers in the eastern half of the US. PJM’s Independent Market Monitor reports total wholesale costs surged 49% in 2025, with capacity costs spiking 262%. Commercial buyers on pass-through contracts should expect billings to reflect this starting in June.
ERCOT (Texas)
Texas commercial rates remain below the national average at ~11.68¢/kWh thanks to abundant natural gas and 14 GW of new battery storage. However, 40+ GW of data center interconnection requests threaten to overwhelm the grid. The 4CP transmission charge structure means summer peak management is critical for controlling commercial costs.
ISO-NE (New England — MA, CT, NH, RI, ME, VT)
New England commercial rates are among the highest in the nation due to pipeline-constrained natural gas supply. Winter 2025/2026 was the most expensive in ISO-NE wholesale market history at $6 billion. Real-time LMPs have spiked above $195/MWh as recently as March 19, 2026.
NYISO (New York)
New York commercial rates average 19.03¢/kWh — 35% above the national average. Con Edison’s 3.5% rate hike compounds the pressure, and NYISO projects a 650 MW summer capacity shortfall. NYC businesses paying Zone J nodal prices face the highest exposure.
MISO (Midwest — IL, IN, MI, WI, MN, IA)
MISO commercial rates remain relatively affordable in the Midwest, but the 2026/27 PRA reveals a 1.9 GW capacity gap, and DR verification tightening could widen it. Results April 28 will signal whether Midwest capacity costs follow PJM’s trajectory.
Action Items for Commercial Electricity Buyers
- PJM territory (June 2026 deadline): Lock in supply contracts before the $329/MW-day capacity cost flows through. Pass-through contracts will see immediate impact on June 1.
- Deregulated states: Request competitive bids from at least 3 Retail Electric Providers. Compare fixed vs. indexed structures. Use our Savings Calculator to model scenarios.
- Load flexibility: Enroll in demand response programs — PJM, NYISO, and ERCOT all offer revenue streams for curtailable commercial loads. See our Demand Response Hub.
- Budget forecasting: Build a 10–15% rate increase buffer into 2026/2027 energy budgets, rising to 15–20% for PJM-territory facilities.
Source: U.S. Energy Information Administration, Electric Power Monthly (March 2026 release); PJM Interconnection; ISO New England; ERCOT; MISO; NYISO; ElectricChoice.com.