Why Electricity Prices Differ So Much by State
Electricity costs several times more per kWh in some states than others. EIA data shows how fuel mix, grid costs, regulation and climate drive the gap.
Updated with EIA data for August 2026
In August 2026, the average residential electricity rate in Arkansas was 14.37¢ per kilowatt-hour (kWh), 21% lower than the US average of 18.16¢. That makes Arkansas the 43rd most expensive of the 50 states and DC. Prices rose 7.8% from August 2025 (13.33¢).
| Year | Avg rate | Avg monthly bill | Avg monthly use |
|---|---|---|---|
| 2026 (8 mo) | 13.74¢ | $152 | 1,103 kWh |
| 2025 | 12.87¢ | $138 | 1,076 kWh |
| 2024 | 12.32¢ | $129 | 1,048 kWh |
| 2023 | 12.25¢ | $129 | 1,049 kWh |
| 2022 | 12.05¢ | $134 | 1,110 kWh |
| 2021 | 11.27¢ | $124 | 1,098 kWh |
| 2020 | 10.41¢ | $110 | 1,060 kWh |
| 2019 | 9.80¢ | $109 | 1,118 kWh |
| 2018 | 9.81¢ | $113 | 1,156 kWh |
| 2017 | 10.28¢ | $106 | 1,028 kWh |
Rates are weighted by kWh sold. Bills and usage are averages per residential customer.
| Sector | Rate | A year earlier |
|---|---|---|
| Residential | 14.37¢ | 13.33¢ |
| Commercial | 11.73¢ | 10.75¢ |
| Industrial | 7.85¢ | 7.32¢ |
| Transportation | 13.75¢ | 13.65¢ |
| All sectors | 11.33¢ | 10.46¢ |
At Arkansas's 12-month average residential rate of 13.57¢ per kWh, here is the energy cost for common monthly usage levels, next to the US average. Fixed customer charges, taxes and fees vary by utility and are not included.
| Monthly use | Arkansas | US average |
|---|---|---|
| 250 kWh | $33.93 | $45.40 |
| 500 kWh | $67.85 | $90.80 |
| 750 kWh | $101.78 | $136.20 |
| 1,000 kWh | $135.70 | $181.60 |
| 1,500 kWh | $203.55 | $272.40 |
| 2,000 kWh | $271.40 | $363.20 |
Over the last 12 months, the average residential rate ranged from 12.35¢ (January 2026) to 14.37¢ (August 2026), and homes used the most electricity in August 2026 (1,510 kWh on average).
| Month | Avg rate | Avg bill | Avg use |
|---|---|---|---|
| August 2026 | 14.37¢ | $217 | 1,510 kWh |
| July 2026 | 14.33¢ | $202 | 1,406 kWh |
| June 2026 | 14.12¢ | $154 | 1,087 kWh |
| May 2026 | 14.36¢ | $114 | 796 kWh |
| April 2026 | 14.16¢ | $106 | 748 kWh |
| March 2026 | 13.63¢ | $111 | 813 kWh |
| February 2026 | 12.73¢ | $156 | 1,227 kWh |
| January 2026 | 12.35¢ | $152 | 1,234 kWh |
| December 2025 | 12.36¢ | $131 | 1,062 kWh |
| November 2025 | 13.25¢ | $102 | 770 kWh |
| October 2025 | 13.29¢ | $120 | 905 kWh |
| September 2025 | 13.82¢ | $153 | 1,107 kWh |
Arkansas's 12-month average rate is higher than 1 of its 6 neighbors.
| State | 12-mo avg rate | Avg monthly bill | Rank |
|---|---|---|---|
| Arkansas | 13.57¢ | $143 | #45 |
| Louisiana | 13.02¢ | $158 | #48 |
| Missouri | 13.97¢ | $145 | #40 |
| Mississippi | 14.85¢ | $174 | #34 |
| Oklahoma | 13.81¢ | $149 | #43 |
| Tennessee | 13.61¢ | $161 | #44 |
| Texas | 15.98¢ | $178 | #26 |
| Appliance | Typical wattage | Cost per hour |
|---|---|---|
| Space heater | 750–1,500 W | $0.10–$0.20 |
| Refrigerator | 725 W | $0.10 |
| Clothes dryer | 1,800–5,000 W | $0.24–$0.68 |
| Washing machine | 350–500 W | $0.05–$0.07 |
| Dishwasher | 1,200–2,400 W | $0.16–$0.33 |
| Electric water heater | 4,500–5,500 W | $0.61–$0.75 |
| Microwave | 750–1,100 W | $0.10–$0.15 |
| Window fan | 55–250 W | $0.01–$0.03 |
All appliance costs · Appliance cost calculator for Arkansas
In Arkansas, most households buy electricity from their local utility at regulated rates, so shopping for a different supplier is usually not an option. The best ways to lower your bill are to reduce usage and check whether your utility offers time-of-use or other rate plans.
Each kW of solar panels in Little Rock produces about 1,373 kWh a year (NREL PVWatts). Sized for an average Arkansas home, a 9.6 kW system would cost about $24,672 before any incentives and pay for itself in about 14.4 years. See the full Arkansas solar estimate.
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The average residential electricity rate in Arkansas was 14.37¢ per kWh in August 2026. Over the past 12 months it averaged 13.57¢ per kWh.
The average residential customer in Arkansas paid $217 for 1,510 kWh in August 2026, based on EIA revenue, sales and customer counts.
In August 2026, Arkansas's average rate of 14.37¢ was 21% lower than the US average of 18.16¢.
Generally no. Most Arkansas households buy electricity from their local utility at regulated rates.
Source: U.S. Energy Information Administration (EIA), Form EIA-861M monthly sales and revenue data. Latest month: August 2026. Recent months may be preliminary and revised by EIA. See how we calculate.