Utility bills are one of the costs that do not shrink much in retirement. You still need to heat and cool the house, keep the lights on and pay for water, and many retirees spend more time at home than they did while working, which can push usage up.
In 2026, electricity has become a bigger part of that bill. ElectricChoice, using Energy Information Administration data, puts the average U.S. residential electric bill at about $166 a month as of September 2026, up 5% from a year earlier and up about 29% from roughly $129 in 2022. The average residential rate is 18.34 cents per kilowatt-hour.
This guide shows electric bills in every state, what households spend on all utilities combined, and practical ways to bring the numbers down.
Total utility spending for older households
Electricity is only part of the picture. The Bureau of Labor Statistics tracks all “utilities, fuels and public services,” which include electricity, natural gas, heating oil, phone service, water and trash collection.
| Household | Yearly utilities (2024) | Per month |
| Head of household 65 to 74 | $4,653 | about $388 |
| All households, 65 and older (estimate from BLS spending shares) | about $4,370 | about $364 |
Source: BLS Consumer Expenditure Surveys, 2024 (via FRED). The 65+ estimate is from our cost of retirement analysis.
Electricity is typically the largest single piece, followed by phone and internet, natural gas, and water and sewer.
Average electric bill by state
States are sorted from lowest to highest average monthly bill.
| State | Average monthly electric bill | Average rate (cents per kWh) | Average monthly use (kWh) | Change vs 2025 |
| Utah | $96 | 13.37 | 718 | +2.1% |
| New Mexico | $108 | 15.06 | 717 | +2.6% |
| Nevada | $120 | 13.11 | 915 | +6.9% |
| Colorado | $121 | 17.13 | 706 | +6.8% |
| Montana | $126 | 15.14 | 832 | +2.2% |
| Oregon | $128 | 16.32 | 784 | +3.3% |
| Wyoming | $128 | 15.24 | 840 | +2.4% |
| Nebraska | $131 | 13.25 | 989 | +0.8% |
| Washington | $132 | 14.91 | 885 | +15.0% |
| Idaho | $136 | 14.37 | 946 | +19.1% |
| Vermont | $136 | 24.44 | 556 | +6.3% |
| Illinois | $138 | 19.89 | 694 | +8.7% |
| Minnesota | $140 | 17.52 | 799 | +2.3% |
| Wisconsin | $143 | 19.56 | 731 | +5.6% |
| Oklahoma | $144 | 14.33 | 1,005 | +5.1% |
| North Carolina | $145 | 14.74 | 984 | +10.2% |
| Kansas | $148 | 15.71 | 942 | +4.5% |
| West Virginia | $148 | 15.45 | 958 | -2.3% |
| Iowa | $149 | 15.93 | 935 | +3.9% |
| South Dakota | $149 | 15.36 | 970 | +8.0% |
| Arkansas | $150 | 14.12 | 1,062 | +5.6% |
| Arizona | $151 | 15.18 | 994 | -0.3% |
| Kentucky | $152 | 14.26 | 1,066 | +6.4% |
| Louisiana | $157 | 13.49 | 1,164 | +5.9% |
| Tennessee | $158 | 14.07 | 1,123 | +1.8% |
| Ohio | $159 | 19.19 | 829 | +9.7% |
| Alaska | $160 | 28.21 | 567 | +5.0% |
| Michigan | $160 | 22.99 | 696 | +10.4% |
| Indiana | $162 | 17.51 | 926 | +6.3% |
| Virginia | $162 | 17.22 | 941 | +13.1% |
| Florida | $165 | 15.10 | 1,093 | -1.6% |
| Pennsylvania | $165 | 21.73 | 759 | +10.4% |
| Mississippi | $167 | 14.88 | 1,122 | +5.8% |
| New Jersey | $167 | 24.95 | 669 | +0.3% |
| Rhode Island | $167 | 29.23 | 571 | +8.9% |
| South Carolina | $167 | 15.55 | 1,074 | +5.1% |
| Maryland | $168 | 21.84 | 769 | +13.2% |
| Maine | $169 | 29.59 | 571 | +5.2% |
| Connecticut | $170 | 24.32 | 699 | -10.6% |
| Delaware | $171 | 19.29 | 886 | +6.2% |
| Georgia | $171 | 16.36 | 1,045 | +2.5% |
| Massachusetts | $172 | 29.61 | 581 | -2.4% |
| Missouri | $172 | 16.22 | 1,061 | +1.9% |
| New Hampshire | $172 | 27.01 | 637 | +14.9% |
| Texas | $173 | 15.94 | 1,085 | +4.5% |
| New York | $174 | 29.49 | 590 | +11.1% |
| Alabama | $182 | 16.40 | 1,110 | +2.1% |
| California | $190 | 34.74 | 547 | +3.4% |
| Hawaii | $268 | 52.72 | 508 | +28.7% |
Source: ElectricChoice.com, “Average Electric Bills” (updated September 21, 2026), based on Energy Information Administration data. North Dakota is omitted pending verification.
Why bills differ so much between states
A bill is simply the rate times how much you use, and both vary widely.
- Rates depend on the fuel mix, local grid costs and regulation. Hawaii pays more than 52 cents per kWh because it relies heavily on imported fuel. California, New England and New York also have high rates. Nevada, Utah, Louisiana and Nebraska are among the cheapest.
- Usage depends mainly on climate. Southern states use far more electricity for air conditioning. Louisiana has one of the lowest rates in the country but a higher-than-average bill, because households use about 1,164 kWh a month.
- Heating fuel matters too. Homes heated with natural gas or oil have lower electric bills but separate heating bills. Homes with electric heat pay more for electricity in winter.
So a low-rate state is not always a low-bill state, and the reverse is also true. California has among the highest rates but average usage of only 547 kWh a month because of its mild coastal climate.
The other utility bills
- Natural gas or heating oil. Costs peak in winter and vary with fuel prices. Homes heated with oil in the Northeast can face large winter bills.
- Water, sewer and trash. Usually set by your city or county, and often rising to pay for aging pipes and treatment plants. Some cities offer senior discounts on water and trash.
- Phone and internet. For many retirees, this has become the second-largest utility. Review plans once a year. Many carriers offer plans for customers 55 and older, and the Lifeline program helps eligible low-income households with phone or internet costs.
A useful budgeting habit is to add up 12 months of all utility bills, divide by 12 and set that amount aside each month. It smooths out the summer and winter spikes.
Why electric bills are rising
- Higher generation costs, including natural gas prices.
- Grid upgrades and storm hardening after extreme weather, paid for through rates.
- Rising demand, including from data centers and electrification.
- Weather. A hotter summer or colder winter pushes usage up.
Ways to lower your utility bills
Get a free or low-cost energy audit. Many utilities offer home energy assessments that find leaks and inefficient equipment.
Seal and insulate. Weatherstripping doors, sealing gaps and adding attic insulation are some of the cheapest improvements with the biggest payoff.
Adjust the thermostat. A smart or programmable thermostat can cut heating and cooling costs by setting back temperatures when you are asleep or away.
Replace old appliances when they fail with ENERGY STAR models, especially refrigerators, water heaters and HVAC systems.
Switch to LED bulbs. They use far less electricity than incandescent bulbs.
Compare suppliers in deregulated states. In Texas, Ohio, Pennsylvania, Illinois, New Jersey, New York and several other states, you can choose your electricity supplier. Read the contract terms carefully, especially for variable rates and early termination fees.
Sign up for budget billing. It does not lower your total cost, but it spreads it evenly across the year, which helps on a fixed income.
Check federal tax credits and utility rebates for heat pumps, insulation and efficient windows, which can offset part of the cost.
Help paying utility bills
Several programs help older adults and people with limited income:
- LIHEAP, the federal Low Income Home Energy Assistance Program, helps pay heating and cooling bills. Apply through your state or local agency.
- The Weatherization Assistance Program pays for energy-saving home improvements for eligible households.
- Utility discount programs. Many utilities offer reduced rates or payment plans for seniors, people with disabilities or low-income customers.
- Medical baseline or medical certificate programs, available in some states, protect customers who rely on electric medical equipment from shutoffs and may provide lower rates.
- Shutoff protections. Many states limit disconnections during extreme heat or cold, or for older and medically vulnerable customers.
Your local Area Agency on Aging can help you find programs where you live.
Planning for utilities in retirement
When you estimate retirement costs, use your own last 12 months of bills rather than an average, and adjust for any move. If you are thinking about relocating, check both the electricity rate and the typical usage in the new area. Moving from a mild coastal state to a hot southern one can double summer bills even if the rate is lower.
If you are in your 40s or 50s and planning a major home project before retirement, energy efficiency upgrades done while you are still earning, such as a new heat pump, insulation or windows, can lower your fixed costs for decades.
Frequently asked questions
What is the average electric bill per month in 2026? About $166 nationally, based on September 2026 data from ElectricChoice using EIA figures.
Which state has the highest electric bills? Hawaii, at about $268 a month. California, Alabama and New York are also among the highest.
Which state has the lowest electric bills? Utah, at about $96 a month, followed by New Mexico, Nevada and Colorado.
How much do retirees spend on utilities? Households headed by someone 65 to 74 spent about $388 a month on all utilities, fuels and public services in 2024, according to BLS data.
Sources
- ElectricChoice.com, “Average Electric Bills” and “Electricity Rates by State” (September 2026), based on U.S. Energy Information Administration data
- U.S. Bureau of Labor Statistics, Consumer Expenditure Surveys 2024 (via FRED)
- U.S. Department of Health and Human Services, LIHEAP
- U.S. Department of Energy, Weatherization Assistance Program and ENERGY STAR
Bills vary by home, usage, provider and season. This article is general information only.
