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Why is my electric bill so high?

Updated

General information, not a substitute for the advice of an attorney.

Short answer: A high bill is some mix of price and quantity. The average U.S. home paid 17.30 cents per kilowatt-hour in 2025 (EIA, prices and factors) and bought about 899 kWh a month in 2022, the latest year on EIA's FAQ (EIA FAQ 97). If your bill is far above those two numbers multiplied together, check which one is out of line.

What moves the price

EIA names five factors behind retail electricity prices: fuels (natural gas and petroleum costs rise during high demand or supply disruptions), power plant costs, the transmission and distribution system (including storm repairs), weather, and regulations (EIA). The same page says residential and commercial customers generally pay the most because distribution to them costs more, while industrial customers taking higher-voltage service pay closer to wholesale (EIA).

  • 2025 U.S. average, all sectors: about 13.63 cents per kWh; residential: 17.30 cents (EIA).
  • 2025 state range: about 8.20 cents per kWh in North Dakota to about 35.72 cents in Hawaii, where much of the electricity comes from imported petroleum (EIA).
  • Prices are usually highest in summer, and demand usually peaks in the afternoon and early evening (EIA).

What moves the quantity

The U.S. average was 10,791 kWh per residential customer in 2022, with state averages from 6,178 kWh in Hawaii to 14,774 kWh in Louisiana (EIA FAQ 97). EIA ties higher demand to extreme temperatures, so a hot or cold month can raise both your usage and, through the wholesale market, the price (EIA).

What to check on the bill

Find the kWh used this period and the same period last year; most bills print both. Divide the total charge by kWh to get your effective cents per kWh and compare it with the 17.30-cent 2025 average. Separate the energy or supply charge from delivery charges, which EIA notes are billed by the distribution utility regardless of who supplies the power (EIA FAQ 627). If your plan is time-of-day priced, which EIA says some utilities offer to reduce peak demand, check when your usage falls (EIA).

In Texas, EIA notes that customers in the ERCOT grid area are required to choose a retail provider (EIA FAQ 627), so the supply portion of the bill depends on the contract you signed, and a fixed-rate term that has expired can be a reason for a sudden jump.

See what ERCOT is, outage history by county and ZIP, and rooftop solar and net metering by state.

General information from the sources linked above, not legal, tax, or financial advice.

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