Which US Region Has The Cheapest Electricity Prices?

According to information taken from the U.S. Bureau of Labor Statistics, the United States' Southern district continues to have the cheapest electricity prices in the country. While such costs continue to trend upwards in each of America's four districts since early 2021, rates in the Southern district entered June at 14.6 cents per kWh (kilowatt-hour), which remains much more affordable than electricity costs in the Northeast (20.7 cents per kWh) and Western (17.20 cents per kWh) districts. Electricity costs in the Midwestern district entered June at 15.50 cents per kWh, only slightly more expensive than the Southern district.

While viewing recent figures on regional electricity prices gives one a glimpse into the affordability of the utility by region, it doesn't tell the whole story. Part of what makes energy in the South more affordable than the competitively-priced Midwest is the Southern district's minimal fluctuations during peak seasons. For instance, while energy costs in the Midwest rose from 12.70 to 13.60 cents per kWh between April and June 2020, electricity prices in the Southern region rose from 12.10 to 12.30 cents per kWh during the same period. However, as of now energy costs continue to increase across the nation (per The New York Times), and are unlikely to stop in the short term, which may be the real reason your electricity bill is through the roof.

As can be seen in the graph above, the average price of electricity increased drastically around October 2021 after remaining fairly stable for the past few years. In fact, homeowners in the Southern and Midwestern regions of the country paid virtually identical prices for energy in May of 2022. While this may not sound surprising, it's a historical outlier that points to a volatile market that's contending with soaring natural gas prices (per NBC News) and an unfavorable economic outlook.

Unfortunately for homeowners who reside in the Southern district, these areas are just as prone to electricity cost increases as everywhere else. According to The Texas Tribune, many Texas homeowners are shelling out much more for electricity than they did last year due to Texas' heavy reliance on natural gas. With increasingly hot summer temperatures and global demand issues driving power costs ever higher, it'll be interesting to see if the Southern district remains the undisputed king of cheap electricity throughout 2023 and beyond.