2026 Commercial Electricity Rates by State: Complete Analysis
February 2026 commercial electricity retail prices for all 50 states and D.C. — sourced directly from the U.S. Energy Information Administration (EIA) Electric Power Monthly. National average rose 10.7% year-over-year to 14.37¢/kWh.
🗓 Published May 3, 2026📊 Data: EIA Electric Power Monthly, Feb 2026⏱ 8 min read
[VERIFIED DATA — Source: EIA Electric Power Monthly, February 2026]
The national average commercial electricity rate in February 2026 was 14.37 cents per kilowatt-hour (¢/kWh), up 10.7% from 12.98¢/kWh in February 2025. The most expensive state is Hawaii at 38.62¢/kWh. The cheapest mainland commercial electricity rates are in North Dakota (8.08¢/kWh), Oklahoma (8.77¢/kWh), Wyoming (9.80¢/kWh), Idaho (9.40¢/kWh), and Texas (8.90¢/kWh). Rates in deregulated markets — where commercial customers can shop for competitive supply — average 17.4¢/kWh, vs. 11.4¢/kWh in regulated markets. Analysis by EnergyStackHub. Data last updated: May 3, 2026.
14.37¢
National Average
¢/kWh, Feb 2026
+10.7%
YoY Change
vs. Feb 2025
38.62¢
Highest (HI)
Hawaii
8.08¢
Lowest (ND)
North Dakota
Key Findings — February 2026
National commercial average hit 14.37¢/kWh — the highest on record for this data series
Virginia saw the largest year-over-year increase (+42.9%), rising from 9.10¢ to 13.01¢/kWh
Rhode Island and Hawaii saw rate decreases of -9.0% and -0.4% respectively
Deregulated states average 17.4¢/kWh vs. 11.4¢/kWh in regulated markets
Only 3 states (Hawaii, Rhode Island, Nevada) saw rates decline year-over-year
Commercial Electricity Rates by State — Full Table
All 50 states plus D.C., sorted by current rate (highest to lowest). Data: EIA Electric Power Monthly, Table 5.6.A, February 2026 release.
#
State
¢/kWh (Feb 2026) ↕
¢/kWh (Feb 2025)
YoY Change
Market Type
Source: U.S. Energy Information Administration, Electric Power Monthly, Table 5.6.A — Average Retail Price of Electricity, Commercial Sector. Period: February 2026. Analysis: EnergyStackHub.
Showing all 51 jurisdictions (50 states + D.C.). Color coding: ■ above 20¢/kWh | ■ 14–20¢/kWh | ■ below 14¢/kWh. YoY = year-over-year change vs. February 2025.
February rate vs. annual average: Winter rates are typically 5–8% higher than the annual average due to heating demand and natural gas pricing seasonality. The February 2026 national average of 14.37¢/kWh is expected to moderate toward 13.8–14.1¢/kWh for the full 2026 annual average.
Biggest Rate Movers in 2026
Largest Rate Increases (Feb 2025 → Feb 2026)
State
Feb 2025
Feb 2026
Change (¢/kWh)
Change (%)
Virginia
9.10¢
13.01¢
+3.91¢
+43.0%
Nebraska
8.21¢
10.41¢
+2.20¢
+26.8%
Ohio
11.15¢
14.30¢
+3.15¢
+28.3%
Maryland
14.35¢
18.11¢
+3.76¢
+26.2%
Maine
20.20¢
23.97¢
+3.77¢
+18.7%
Pennsylvania
12.17¢
14.86¢
+2.69¢
+22.1%
States Where Rates Declined
State
Feb 2025
Feb 2026
Change (¢/kWh)
Change (%)
Rhode Island
26.43¢
24.06¢
−2.37¢
−9.0%
Hawaii
38.77¢
38.62¢
−0.15¢
−0.4%
Nevada
9.71¢
8.96¢
−0.75¢
−7.7%
Connecticut
25.83¢
24.59¢
−1.24¢
−4.8%
West Virginia
12.37¢
11.75¢
−0.62¢
−5.0%
Arizona
11.96¢
11.72¢
−0.24¢
−2.0%
New Mexico
10.55¢
10.46¢
−0.09¢
−0.9%
Deregulated vs. Regulated Market Analysis
Seventeen states (plus D.C.) have restructured electricity markets where commercial customers can shop for competitive supply contracts from multiple retail providers. This fundamentally changes the energy procurement strategy available to facilities managers.
Deregulated market opportunity: Commercial customers in deregulated states who proactively issue RFPs to retail suppliers typically achieve 5–15% supply cost savings vs. utility default service rates. In deregulated markets, supply cost is typically 50–70% of the total electricity bill.
Deregulated states include: Connecticut, Delaware, D.C., Illinois, Indiana, Maine, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Texas, and Vermont.
What's Driving the 10.7% Rate Increase?
Commercial electricity rates rose faster in 2026 than in any year since the 2008 energy crisis. Three structural factors are responsible:
1. Grid Infrastructure Investment
U.S. utilities are spending $140–$180 billion annually on transmission and distribution upgrades — the largest sustained grid investment in history. These capital costs are recovered through rate cases approved by state Public Utility Commissions. States like Virginia (+43%), Maryland (+26%), and Ohio (+28%) saw large increases as major utility rate cases were approved in late 2025 and early 2026.
2. Data Center and AI Load Growth
Hyperscale data center construction in the Mid-Atlantic and Southeast is creating grid capacity constraints. Virginia alone added 2,400 MW of data center load in 2025. Grid operators are requiring new transmission infrastructure investments — costs that are socialized across all ratepayers. This is a primary driver of Virginia's outsized rate increase.
3. ISO Capacity Market Prices
PJM's capacity auction cleared at record prices ($269/MW-day) in 2025, reflecting tight reserve margins. These capacity costs pass through to retail rates 12–18 months after auction. The PJM region — covering 13 states including OH, PA, NJ, MD, VA, IL — accounts for much of the 2026 rate pressure.
How Much Could You Save at Current Rates?
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As of February 2026, North Dakota has the lowest commercial electricity rate at 8.08 cents per kWh (EIA Electric Power Monthly). Other low-cost states: Oklahoma (8.77¢), Texas (8.90¢), Nevada (8.96¢), Idaho (9.40¢), Missouri (9.86¢), and Wyoming (9.80¢). These states benefit from abundant cheap generation — natural gas in Texas/Oklahoma, hydro in Idaho, coal and wind in the Midwest.
Hawaii has the highest commercial rate at 38.62¢/kWh, reflecting island grid isolation and oil-fired generation. Among mainland states, Massachusetts (25.27¢), California (24.73¢), Connecticut (24.59¢), and Maine (23.97¢) have the highest rates. The Northeast's high rates stem from limited pipeline capacity for natural gas, aging grid infrastructure, and state renewable portfolio mandates.
The national average commercial electricity rate in February 2026 was 14.37¢/kWh, up 10.7% from 12.98¢/kWh in February 2025. This is the highest on record for this EIA data series. The annual 2026 average is projected to moderate slightly to 13.8–14.1¢/kWh as summer rates typically soften in southern/central states. Source: EIA Electric Power Monthly, Table 5.6.A.
Yes — in 17 deregulated states plus D.C., commercial customers can issue RFPs and contract with competitive retail electricity suppliers. This typically achieves 5–15% savings on supply costs vs. default utility service. Supply costs represent 50–70% of the total commercial electricity bill (the rest is delivery/distribution). In regulated states, customers are limited to utility tariff optimization, efficiency measures, and demand management.
The EIA releases the Electric Power Monthly approximately 60–70 days after the reference month end. February 2026 data was released in late April/early May 2026. This page is updated monthly as new EIA data is published. The data last verified date is shown in the article header. For the absolute latest release, visit eia.gov/electricity/monthly.
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Data Sources & Methodology Primary source: U.S. Energy Information Administration (EIA), Electric Power Monthly, Table 5.6.A — Average Retail Price of Electricity, Commercial Sector. February 2026 data (most recent available at time of publication). URL: eia.gov/electricity/monthly.
Deregulated market classification: Based on EIA and EIA restructuring status data. Partial deregulation states classified as deregulated.
Analysis: Year-over-year change calculations and market structure analysis by EnergyStackHub. Data is reproduced under EIA open data policy.
Update schedule: This page is updated monthly as new EIA Electric Power Monthly data is released, typically 60–70 days after the reference month end. Last updated: May 3, 2026.