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National • EIA DataMar 29, 2026

Average Electricity Cost per kWh in the US: 17.45¢ Residential, 13.64¢ Commercial as Rates Climb 8.3% YoY

The Bottom Line (US National)

The average electricity cost per kWh in the United States is 17.45 cents for residential and 13.64 cents for commercial customers as of January 2026, per the EIA Electric Power Monthly released March 24, 2026. Total average retail revenue hit 14.17¢/kWh — up 8.3% year-over-year. Forty-six states saw increases, with DC (+30.3%), Pennsylvania (+21.7%), and Maryland (+20.9%) posting the largest jumps.

17.45¢
National Avg
Residential cents/kWh
+8.3%
YoY Increase
All-sector average
13.64¢
Commercial Avg
Business rate cents/kWh

EIA Electric Power Monthly: January 2026 Data

The EIA published its latest Electric Power Monthly on March 24, 2026, covering January 2026. All four end-use sectors saw year-over-year cost increases:

  • Transportation: +29.3% (EV charging infrastructure)
  • Industrial: +11.4% (PJM capacity and data center load)
  • Residential: +9.5% (17.45¢/kWh national average)
  • Commercial: +6.4% (13.64¢/kWh national average)

Most Expensive States

StateAvg ¢/kWhvs National
Massachusetts27.61¢+95%
New York27.39¢+93%
Rhode Island27.23¢+92%
Connecticut25.71¢+82%

Cheapest States

StateAvg ¢/kWhDriver
Louisiana8.40¢Henry Hub proximity
North Dakota8.47¢Wind generation
New Mexico8.85¢Solar buildout

Biggest YoY Increases

  • DC: +30.3% — PJM capacity costs and Pepco rate case
  • Pennsylvania: +21.7% — PJM BRA at record $329/MW-day
  • Maryland: +20.9% — BGE default service reflects PJM wholesale

What Drives the 8.3% Increase?

  1. PJM Capacity: Record $329/MW-day BRA clearing for 2026/27, driven by 5,400 MW data center demand, flows to retail across 13 states.
  2. Natural Gas: Henry Hub rose from $2.18 to $3.82/MMBtu (+75%). Gas sets marginal clearing price in most wholesale markets.
  3. Transmission: MISO $8.8B MTEP 26 plan ($3.1B for data centers) — grid buildout socialized across ratepayers.

Commercial Buyer Action Items

  • Lock forward pricing: Q3/Q4 curves in contango. Fix 12–24 month contracts before June PJM delivery year.
  • Evaluate demand response: PJM at $329/MW-day = highest-ever DR revenue opportunity.
  • Compare suppliers: In 17 deregulated states, competitive suppliers beat default rates 5–15%. Calculate savings.

Source: EIA Electric Power Monthly, Table 5.6.a, March 24, 2026; Henry Hub via CME/NYMEX.

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