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 Colorado was 17.17¢ per kilowatt-hour (kWh), 5% lower than the US average of 18.16¢. That makes Colorado the 22nd most expensive of the 50 states and DC. Prices rose 5.9% from August 2025 (16.21¢).
| Year | Avg rate | Avg monthly bill | Avg monthly use |
|---|---|---|---|
| 2026 (7 mo) | 16.87¢ | $124 | 735 kWh |
| 2025 | 15.69¢ | $103 | 658 kWh |
| 2024 | 14.92¢ | $101 | 674 kWh |
| 2023 | 14.30¢ | $95 | 662 kWh |
| 2022 | 14.19¢ | $98 | 692 kWh |
| 2021 | 13.07¢ | $92 | 704 kWh |
| 2020 | 12.36¢ | $88 | 711 kWh |
| 2019 | 12.18¢ | $83 | 682 kWh |
| 2018 | 12.15¢ | $84 | 691 kWh |
| 2017 | 12.17¢ | $82 | 678 kWh |
Rates are weighted by kWh sold. Bills and usage are averages per residential customer.
| Sector | Rate | A year earlier |
|---|---|---|
| Residential | 17.17¢ | 16.21¢ |
| Commercial | 13.94¢ | 13.13¢ |
| Industrial | 9.98¢ | 9.64¢ |
| Transportation | 10.57¢ | 13.52¢ |
| All sectors | 14.36¢ | 13.48¢ |
At Colorado's 12-month average residential rate of 17.17¢ 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 | Colorado | US average |
|---|---|---|
| 250 kWh | $42.93 | $45.40 |
| 500 kWh | $85.85 | $90.80 |
| 750 kWh | $128.78 | $136.20 |
| 1,000 kWh | $171.70 | $181.60 |
| 1,500 kWh | $257.55 | $272.40 |
| 2,000 kWh | $343.40 | $363.20 |
Over the last 12 months, the average residential rate ranged from 15.97¢ (December 2025) to 17.17¢ (August 2026), and homes used the most electricity in July 2026 (1,024 kWh on average).
| Month | Avg rate | Avg bill | Avg use |
|---|---|---|---|
| August 2026 | 17.17¢ | $167 | 973 kWh |
| July 2026 | 17.00¢ | $174 | 1,024 kWh |
| June 2026 | 17.13¢ | $129 | 751 kWh |
| May 2026 | 16.16¢ | $97 | — kWh |
| April 2026 | 16.54¢ | $90 | 546 kWh |
| March 2026 | 16.74¢ | $99 | 592 kWh |
| February 2026 | 16.79¢ | $96 | 573 kWh |
| January 2026 | 16.44¢ | $113 | 685 kWh |
| December 2025 | 15.97¢ | $102 | 640 kWh |
| November 2025 | 16.19¢ | $89 | 548 kWh |
| October 2025 | 16.08¢ | $92 | 570 kWh |
| September 2025 | 16.49¢ | $108 | 652 kWh |
Colorado's 12-month average rate is higher than all of its neighbors.
| State | 12-mo avg rate | Avg monthly bill | Rank |
|---|---|---|---|
| Colorado | 17.17¢ | $167 | #20 |
| Arizona | 15.39¢ | $162 | #31 |
| Kansas | 15.13¢ | $134 | #33 |
| Nebraska | 12.74¢ | $122 | #50 |
| New Mexico | 16.51¢ | $162 | #23 |
| Oklahoma | 13.81¢ | $149 | #43 |
| Utah | 13.26¢ | $104 | #47 |
| Wyoming | 14.01¢ | $114 | #39 |
| Appliance | Typical wattage | Cost per hour |
|---|---|---|
| Space heater | 750–1,500 W | $0.13–$0.26 |
| Refrigerator | 725 W | $0.12 |
| Clothes dryer | 1,800–5,000 W | $0.31–$0.86 |
| Washing machine | 350–500 W | $0.06–$0.09 |
| Dishwasher | 1,200–2,400 W | $0.21–$0.41 |
| Electric water heater | 4,500–5,500 W | $0.77–$0.94 |
| Microwave | 750–1,100 W | $0.13–$0.19 |
| Window fan | 55–250 W | $0.01–$0.04 |
All appliance costs · Appliance cost calculator for Colorado
In Colorado, 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.
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The average residential electricity rate in Colorado was 17.17¢ per kWh in August 2026. Over the past 12 months it averaged 17.17¢ per kWh.
The average residential customer in Colorado paid $167 for 973 kWh in August 2026, based on EIA revenue, sales and customer counts.
In August 2026, Colorado's average rate of 17.17¢ was 5% lower than the US average of 18.16¢.
Generally no. Most Colorado 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.