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 North Dakota was 13.31¢ per kilowatt-hour (kWh), 27% lower than the US average of 18.16¢. That makes North Dakota the 48th most expensive of the 50 states and DC. Prices rose 2.6% from August 2025 (12.97¢).
| Year | Avg rate | Avg monthly bill | Avg monthly use |
|---|---|---|---|
| 2026 (8 mo) | 12.46¢ | $135 | 1,087 kWh |
| 2025 | 11.82¢ | $126 | 1,070 kWh |
| 2024 | 11.51¢ | $118 | 1,029 kWh |
| 2023 | 11.01¢ | $118 | 1,069 kWh |
| 2022 | 10.92¢ | $122 | 1,119 kWh |
| 2021 | 10.85¢ | $113 | 1,041 kWh |
| 2020 | 10.44¢ | $113 | 1,085 kWh |
| 2019 | 10.30¢ | $114 | 1,109 kWh |
| 2018 | 10.25¢ | $115 | 1,118 kWh |
| 2017 | 10.29¢ | $109 | 1,063 kWh |
Rates are weighted by kWh sold. Bills and usage are averages per residential customer.
| Sector | Rate | A year earlier |
|---|---|---|
| Residential | 13.31¢ | 12.97¢ |
| Commercial | 8.07¢ | 7.47¢ |
| Industrial | 8.12¢ | 7.62¢ |
| Transportation | 0.00¢ | 0.00¢ |
| All sectors | 8.91¢ | 8.38¢ |
At North Dakota's 12-month average residential rate of 12.35¢ 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 | North Dakota | US average |
|---|---|---|
| 250 kWh | $30.88 | $45.40 |
| 500 kWh | $61.75 | $90.80 |
| 750 kWh | $92.63 | $136.20 |
| 1,000 kWh | $123.50 | $181.60 |
| 1,500 kWh | $185.25 | $272.40 |
| 2,000 kWh | $247.00 | $363.20 |
Over the last 12 months, the average residential rate ranged from 10.92¢ (January 2026) to 14.12¢ (June 2026), and homes used the most electricity in January 2026 (1,578 kWh on average).
| Month | Avg rate | Avg bill | Avg use |
|---|---|---|---|
| August 2026 | 13.31¢ | $130 | 979 kWh |
| July 2026 | 13.41¢ | $144 | 1,077 kWh |
| June 2026 | 14.12¢ | $114 | 805 kWh |
| May 2026 | 13.61¢ | $117 | 861 kWh |
| April 2026 | 12.35¢ | $120 | 971 kWh |
| March 2026 | 11.94¢ | $141 | 1,181 kWh |
| February 2026 | 11.64¢ | $145 | 1,244 kWh |
| January 2026 | 10.92¢ | $172 | 1,578 kWh |
| December 2025 | 11.01¢ | $164 | 1,488 kWh |
| November 2025 | 11.92¢ | $129 | 1,084 kWh |
| October 2025 | 12.81¢ | $107 | 836 kWh |
| September 2025 | 13.65¢ | $110 | 808 kWh |
North Dakota's 12-month average rate is lower than all of its neighbors.
| State | 12-mo avg rate | Avg monthly bill | Rank |
|---|---|---|---|
| North Dakota | 12.35¢ | $133 | #51 |
| Minnesota | 16.28¢ | $121 | #25 |
| Montana | 13.94¢ | $115 | #42 |
| South Dakota | 14.28¢ | $140 | #36 |
| Appliance | Typical wattage | Cost per hour |
|---|---|---|
| Space heater | 750–1,500 W | $0.09–$0.19 |
| Refrigerator | 725 W | $0.09 |
| Clothes dryer | 1,800–5,000 W | $0.22–$0.62 |
| Washing machine | 350–500 W | $0.04–$0.06 |
| Dishwasher | 1,200–2,400 W | $0.15–$0.30 |
| Electric water heater | 4,500–5,500 W | $0.56–$0.68 |
| Microwave | 750–1,100 W | $0.09–$0.14 |
| Window fan | 55–250 W | $0.01–$0.03 |
All appliance costs · Appliance cost calculator for North Dakota
In North Dakota, 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 Fargo produces about 1,294 kWh a year (NREL PVWatts). Sized for an average North Dakota home, a 10.0 kW system would cost about $25,700 before any incentives and pay for itself in about 16.7 years. See the full North Dakota solar estimate.
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The average residential electricity rate in North Dakota was 13.31¢ per kWh in August 2026. Over the past 12 months it averaged 12.35¢ per kWh.
The average residential customer in North Dakota paid $130 for 979 kWh in August 2026, based on EIA revenue, sales and customer counts.
In August 2026, North Dakota's average rate of 13.31¢ was 27% lower than the US average of 18.16¢.
Generally no. Most North Dakota 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.