A recent report by the online financial resource Wallet Hub uses six key metrics to rank each state according to its tendency to produce the highest or lowest monthly energy bills.
The cost of electricity is just one component of most homes’ energy bills, which also include fuel and natural gas expenses. On average, 7.1 percent of the average U.S. consumer’s total income is spent on energy costs.
Hover over the map below to see your state’s ranking  . (One indicates the lowest cost and 51 indicates the highest cost.)
But ranking states by the price of electricity alone  —without other energy costs factored in – impacts the results dramatically. In fact, Colorado drops from No. 1 for cheapest monthly energy costs as shown in the map above to No. 32 nationally when the cost of electricity is considered in isolation. Here are the results of ranking states for electricity price only:
- Wyoming – 4th
- New Mexico – 21st
- Nebraska – 15th
- Colorado – 32nd
What accounts for the difference in ranking? When considering all energy expenses, the average monthly energy bill reflects a diverse mix of fuels—each one a different cost impacted by the availability of resources in the state. For example, when averaged together with higher costs in areas like electricity and fuel, Colorado’s first place ranking for lowest cost of natural gas dramatically reduces the average energy bill for consumers.
Even though electricity is only one component of monthly energy costs, keeping it affordable can positively impact consumer’s overall energy costs. Join our eAction team to receive alerts about opportunities to take action to keep electricity affordable in your community.
(1) The study relied on data from the U.S. Energy Information Administration, the Federal Highway Administration, the U.S. Environmental Protection Agency and the AAA’s Daily Fuel Gauge Report.
(2) U.S. Energy Information Administration, http://www.eia.gov/electricity/sales_revenue_price/xls/table4.xls