In this article, we explore the top 25 cities in the US with the highest electricity consumption. If you want to skip our detailed analysis, you can go to 5 Cities with the Highest Electricity Consumption in the US.
Electricity is vital for our daily life and the world economy. It is the source of lighting, heating, cooling, refrigeration, appliances, computers, electronics, machinery, and public transport. According to the U.S. Energy Information Administration (EIA), the average American family spends approximately $2,060 annually on utility bills, covering electricity, natural gas, water, and trash services. This translates to about $171 per month for electricity, $68 for natural gas, $75 for water, and $14 for trash collection.
In 2023, the United States consumed about 4,014 terawatt-hours (TWh) of electricity, a 1% drop from the previous year due to milder summer temperatures reducing residential demand. Despite this, residential electricity use remained higher than the five-year average because of more people working from home during the pandemic. In 2022, U.S. electricity consumption hit a record high of around 4.07 trillion kWh, which is 14 times higher than in 1950. Between 1950 and 2022, annual U.S. electricity consumption increased most years, with significant declines occurring mainly after 2007.
Amid the pandemic, industrial and commercial electricity usage declined due to shutdowns and increased remote work. However, residential electricity consumption has risen over the past few months, surpassing the last five years’ average. This increase is attributed to more people working from home, leading to higher electricity, internet, and phone usage. Additionally, more frequent cooking and dishwasher use has contributed to the rise in energy consumption.
Climate plays a significant role in energy usage. Households in colder regions use more energy for heating in the winter, while those in warmer regions have higher usage in the summer. Data from the EIA shows that households in the Northeast and Midwest have the highest average energy consumption, whereas those in the more temperate West use the least.
On the other hand, the industrial sector uses electricity for various purposes. For example, industries like aluminum and steel production need electricity for heating processes, while food processing uses it for cooling and freezing. Some manufacturers, such as pulp and paper mills and lumber mills, produce their own electricity, often through combined heat and power systems. They might even sell some of this electricity. According to the Annual Energy Outlook 2023 Reference case, manufacturers were responsible for about 78% of the industrial sector’s total electricity purchases in 2022. The remaining purchases were split between construction (8%), mining (8%), and agriculture (7%).
Short-term changes in U.S. electricity demand can vary with yearly weather changes, but long-term trends are influenced more by economic growth and improvements in energy efficiency. According to the AEO2023 Reference case, U.S. electricity demand is expected to grow by about 1% per year from 2022 to 2050.
Historically, lighting was the largest electricity user in the commercial sector, but its share has decreased due to efficient lighting technologies. Conversely, electricity usage for computers and office equipment has risen. Space cooling depends on weather, climate, building design, and heat generated by lighting, computers, appliances, and occupants.
As technology advances, power trends are increasingly shaped by the growing demand for data centers and artificial intelligence (AI). Data centers require substantial electricity to support their vast servers and cooling systems, while AI developments drive further energy consumption due to the need for high-performance computing and large-scale data processing.
Companies that are likely to benefit from increased AI-driven electricity demand include Vistra Corp. (NYSE:VST), a major independent power producer and retail electricity provider in the US. Despite facing volatility in domestic electricity demand, Vistra Corp. (NYSE:VST) has strategically improved its capital allocation.
Vistra Corp. (NYSE:VST) has adapted to the weak demand for fossil fuels by shutting down unprofitable coal plants and repurchasing 33% of its shares from 2018 to 2023, as pointed out by Billionaire activist investor Dan Loeb in his Q1 2024 investor letter. As the electricity generation sector experiences significant growth driven by rising global demand from the US, substantial opportunities are emerging for industry leaders. In particular, hyperscalers are expected to increasingly locate their data centers near Vistra Corp. (NYSE:VST)’s power plants, positioning the company to benefit from this expanding market.
Data centers are projected to increase their share of US power demand from about 3% to 8% by 2030, according to estimates by Goldman Sachs Research.Additionally, cloud computing leaders are likely to depend more on nuclear energy for their data centers, making Vistra Corp. (NYSE:VST)’s ability to supply this demand crucial for its positive outlook. As top tech companies seek direct contracts with nuclear power providers for clean and reliable energy, Vistra Corp. (NYSE:VST) is well-positioned to benefit.
Vistra Corp. (NYSE:VST)’s acquisition of Energy Harbor’s nuclear assets aligns with the growing shift towards nuclear energy. This strategic positioning, combining both renewable and fossil fuel-based assets, places Vistra Corp. (NYSE:VST) in a strong position to benefit from AI-driven electricity demand, leading to a positive outlook for the company.
While we acknowledge the potential of VST as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
Ikonoklast Fotografie/Shutterstock.com
Our Methodology
To identify the 25 cities with the highest electricity consumption in the US, we first collected annual electricity consumption data from the U.S. Energy Information Administration (EIA). We then analyzed this data, focusing on major urban centers known for substantial residential, commercial, and industrial activities. By ranking the cities based on their total annual electricity consumption, we selected the top 25. We considered factors such as population size, economic activity, and climate conditions that drive electricity demand. Finally, we verified the accuracy of the data and ranked the cities based on their annual electricity usage per kilowatt-hour (kWh).
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25. Nashville, TN
Average Annual Electricity Usage: 12 billion kWh
Ranking 25th in our list of the 25 cities with the highest electricity consumption in the US is Nashville, the capital of Tennessee and known as the Music City. Nashville is a global city categorized as “Gamma” by the GaWC as of 2020. It’s a major hub for the music industry, especially country music. The city’s high residential electricity use comes from its large population and dense housing, with significant energy demand for heating, cooling, and household appliances.
24. Boston, MA
Average Annual Electricity Usage: 12.3 billion kWh
Boston, MA, is a major city in the northeastern United States and the capital of Massachusetts. It is a key center for finance, technology, and healthcare, and is renowned for its educational institutions, including Harvard University and MIT. The city’s high residential electricity usage stems from its large number of households and dense urban environment, driving significant demand for energy. Boston ranks 24th in our list of the 25 cities with the highest electricity consumption in the US.
Boston, MA is the home of NSTAR Electric Company (OTC:NSARP), a utility company serving 1.4 million customers with retail electricity and natural gas across eastern and central Massachusetts.
23. Washington, D.C.
Average Annual Electricity Usage: 12.7 billion kWh
Washington, DC, is the U.S. capital and a key center for politics, diplomacy, and culture, known for landmarks like the White House and the U.S. Capitol. However, it ranked 3rd in our list of the 20 cities with the biggest downtowns in the US.
In Washington, D.C., the average monthly electricity bill for residents is about $157, which totals approximately $1,884 per year. The city uses about 12.7 billion kilowatt-hours (kWh) of electricity each year, sourced from natural gas, nuclear, and renewable energy. Residential households consume around 10,000 kWh of electricity annually, making up a significant part of the total electricity usage.
22. Denver, CO
Average Annual Electricity Usage: 13.1 billion kWh
Denver landed in the 22nd spot on our list of the 25 cities with the highest electricity consumption in the US. Denver, the capital of Colorado, is a major city known for its vibrant economy, cultural scene, and access to outdoor activities in the Rocky Mountains. The city’s businesses and industries use a large amount of electricity, contributing to its total annual consumption of about 13.1 billion kilowatt-hours (kWh). The average household in Denver consumes about 10,824 kWh (kilowatt-hours) of electricity each year. With an electricity rate of 15 cents per kWh, residents spend roughly $135 per month on their electric bills, which adds up to $1,620 annually.
Denver is the home of Xcel Energy Inc. (NASDAQ:XEL), a major U.S. electric and natural gas company. Xcel Energy Inc. (NASDAQ:XEL) provides energy to customers in Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas, and Wisconsin.
21. Seattle, WA
Average Annual Electricity Usage: 13.5 billion kWh
Seattle is surrounded by water, mountains, and forests and has many parks. As Washington State’s largest city, it has a major tech industry with Microsoft Corporation (NASDAQ:MSFT) and Amazon.com, Inc. (NASDAQ:AMZN) headquartered nearby.
Seattle uses about 13.1 billion kilowatt-hours (kWh) of electricity annually, with residential households averaging 8,000 to 9,000 kWh per year. The city gets most of its electricity from hydroelectric power, along with natural gas and other renewables, and is working to boost its use of renewable energy for sustainability. Seattle ranks 21st in our list of the 25 cities with the highest electricity consumption in the US.
20. Memphis, TN
Average Annual Electricity Usage: 13.9 billion kWh
Memphis, located on the Mississippi River in southwest Tennessee, is renowned for its influential blues, soul, and rock ‘n’ roll music. Icons like Elvis Presley, B.B. King, and Johnny Cash recorded at Sun Studio, and Presley’s Graceland mansion remains a popular attraction.
Memphis consumes around 13.9 billion kilowatt-hours (kWh) of electricity annually, with households averaging 12,000 kWh per year, higher than the national average due to the hot climate. Memphis Light, Gas, and Water (MLGW) manages the city’s energy mix. Memphis landed on the 20th spot in our list of the 25 cities with the highest electricity consumption in the US.
19. El Paso, TX
Average Annual Electricity Usage: 14.3 billion kWh
El Paso, the county seat of El Paso County, Texas, is known for its affordable homes and attractive neighborhoods. Surrounded by mountains and boasting over 300 days of sunshine annually, it offers a dry climate ideal for year-round outdoor activities. According to our research, El Paso is one of the 10 Best Places to Retire in the South.
The city consumes about 14.3 billion kilowatt-hours (kWh) of electricity each year, with residential households using around 9,000 kWh annually. El Paso Electric Company (NYSE:EP-PC) manages the city’s energy supply.
18. Detroit, MI
Average Annual Electricity Usage: 14.8 billion kWh
Ranking 18th in our list of the 25 cities with the highest electricity consumption in the US is Detroit, the largest city in Michigan, which is famous for being the automobile capital of the world, and for its iconic Motown music from the 1960s. The city consumes about 14.8 billion kilowatt-hours (kWh) of electricity annually, with residential households using around 10,000 kWh per year on average. DTE Energy Company (NYSE:DTE) manages the city’s electricity supply.
17. Fort Worth, TX
Average Annual Electricity Usage: 15.1 billion kWh
Fort Worth is one of the 25 cities with the highest electricity consumption in the US. Fort Worth, located in North Central Texas, was a key trading post for cowboys at the end of the Chisholm Trail in the late 19th century. Today, it’s a modern and rapidly growing city. Forth Worth made it to our list of the 11 Fastest-Declining Cities in Texas.
Fort Worth consumes about 15.1 billion kilowatt-hours (kWh) of electricity annually, with residential households using around 11,000 kWh each year on average. Oncor Electric Delivery manages the city’s energy supply.
16. Charlotte, NC
Average Annual Electricity Usage: 15.6 billion kWh
Clinching the 16th spot in our list of the 25 cities with the highest electricity consumption in the US is Charlotte, a major city and commercial hub in North Carolina, which is known for its strong financial industry, mild climate, and vibrant food scene. With a lower-than-average cost of living, it’s one of the top 20 fastest-growing cities in America. Charlotte also ranks 15th in our list of the 27 Most Fashionable Cities in the US.
Charlotte consumes around 15.6 billion kilowatt-hours (kWh) of electricity annually, with residential households averaging about 12,000 kWh per year. Duke Energy Corporation (NYSE:DUK), based in Charlotte, manages the city’s energy supply.
15. Indianapolis, IN
Average Annual Electricity Usage: 16.7 billion kWh
Indianapolis, the capital and largest city of Indiana, offers an affordable cost of living, great weather, higher education opportunities, and a growing job market, making it an attractive place to live in the Midwest.
The city consumes about 16.7 billion kilowatt-hours (kWh) of electricity annually, with residential households using an average of 11,000 kWh per year. The energy supply for Indianapolis is managed by the local utility provider, Indianapolis Power & Light Company. Indianapolis ranks 15th in our list of the 25 cities with the highest electricity consumption in the US.
14. Columbus, OH
Average Annual Electricity Usage: 17.9 billion kWh
Landing on the 14th spot in our list of the 25 cities with the highest electricity consumption in the US is Columbus, the state capital of Ohio. The city offers a solid economic base, a low cost of living, and various activities for families, young professionals, and students.
Columbus uses about 17.9 billion kilowatt-hours (kWh) of electricity each year, with residential households averaging around 10,000 kWh annually. American Electric Power Company, Inc. (NASDAQ:AEP) manages the city’s energy supply.
13. San Francisco, CA
Average Annual Electricity Usage: 18.6 billion kWh
San Francisco bagged the 13th spot in our list of the 25 cities with the highest electricity consumption in the US. Known for landmarks like the Golden Gate Bridge and Alcatraz, San Francisco is also the 13th largest city in the US. However, living here will be costly as it is the most expensive place to live in the country, with an average cost of living index score of 118.
The city uses about 18.6 billion kilowatt-hours (kWh) of electricity each year. Residential households average between 6,000 and 8,000 kWh per year. San Francisco primarily sources its electricity from renewable energy, including hydroelectric, solar, and wind power, with some additional supply from natural gas. The city is powered by its local utility provider, PG&E Corporation (NYSE:PCG).
12. Jacksonville, FL
Average Annual Electricity Usage: 19.8 billion kWh
Jacksonville, the most populous city in Florida, is located on the Atlantic coast and features 22 miles of beaches, diverse neighborhoods, and a vibrant arts and culture scene. The city consumes about 19.8 billion kilowatt-hours (kWh) of electricity annually. Residential households in Jacksonville use an average of 11,000 kWh per year, making it the 12th city in our list of the 25 cities with the highest electricity consumption in the US. Jacksonville’s energy supply is managed by the Jacksonville Electric Authority (JEA).
11. Austin, TX
Average Annual Electricity Usage: 20.3 billion kWh
Ranking 11th in our list of the 25 cities with the highest electricity consumption in the US is Austin, the state capital of Texas. The city is located near the Hill Country and is known as the Live Music Capital of the World. Austin uses about 20.3 billion kilowatt-hours (kWh) of electricity each year. On average, residential households in Austin consume between 9,000 and 11,000 kWh of electricity annually. Austin also made it in our list of the 20 cities adding the most credit card debt.
10. San Jose, CA
Average Annual Electricity Usage: 21.4 billion kWh
San Jose ranks 10th in our list of the 25 cities with the highest electricity consumption in the US. San Jose is a major city in Silicon Valley and is known for its high cost of living, with housing 226% more expensive and utilities about 31% pricier than the U.S. average. Groceries and clothing are also about 8% more expensive compared to other parts of the country. However, it topped our list of the 10 cities with the highest average salary in the US, with an average monthly net salary of $7,602.39.
San Jose consumes around 21.4 billion kilowatt-hours (kWh) of electricity each year, with residential households using between 6,000 and 8,000 kWh annually.
9. San Diego, CA
Average Annual Electricity Usage: 22.5 billion kWh
San Diego is known for its excellent year-round weather, beautiful beaches, and access to outdoor spaces, making it the most relaxed city in the United States. The city consumes about 22.5 billion kilowatt-hours (kWh) of electricity annually. On average, households in San Diego use between 6,500 and 8,500 kWh of electricity each year. San Diego ranks 9th on our list of the 25 cities with the highest electricity consumption in the US.
8. San Antonio, TX
Average Annual Electricity Usage: 23.1 billion kWh
San Antonio, the second-largest city in Texas with a population of 2.4 million, offers a blend of benefits like no state income tax, affordable living, and a diverse food scene, though it also faces challenges such as traffic congestion and high property taxes. San Antonio is ranked 5th among U.S. cities where the most people moved in 2024. The city consumes about 23.1 billion kilowatt-hours (kWh) of electricity annually, with residential households using an average of 12,000 kWh per year, making it the 8th city on our list of the 25 cities with the highest electricity consumption in the US.
7. Phoenix, AZ
Average Annual Electricity Usage: 24.8 billion kWh
Phoenix, the capital of Arizona and the fifth-largest city in the U.S. is one of the most famous cities in the US. Phoenix is known for its year-round sunshine, desert scenery, and vibrant urban and cultural life. The city uses around 24.8 billion kilowatt-hours (kWh) of electricity annually, with residential households consuming between 10,000 and 12,000 kWh per year.
6. Philadelphia, PA
Average Annual Electricity Usage: 25.3 billion kWh
Philadelphia, Pennsylvania’s largest city and the birthplace of the United States, is known for its rich history, including landmarks like the Liberty Bell and Independence Hall. The city consumes about 25.3 billion kilowatt-hours (kWh) of electricity annually, with residential households using between 8,000 and 10,000 kWh per year. Philadelphia ranks 6th in our list of the 25 cities with the highest electricity consumption in the US.
5. Dallas, TX
Average Annual Electricity Usage: 27.4 billion kWh
Dallas, a major city in North Texas, is a key commercial and cultural center, known for its banking, financial, and trade industries. The city consumes around 27.4 billion kilowatt-hours (kWh) of electricity annually. On average, households in Dallas use between 12,000 and 14,000 kWh of electricity per year. Dallas has a large and diverse economy, with its commercial and industrial sectors significantly impacting its electricity consumption. This makes it the 5th highest in electricity use among the top 25 cities with the highest electricity consumption in the US.
4. Houston, TX
Average Annual Electricity Usage: 28.6 billion kWh
Ranking 4th in our list of the 25 cities with the highest electricity consumption in the US is Houston. Houston, a major city in Texas and home to Space Center Houston, consumes about 28.6 billion kilowatt-hours (kWh) of electricity annually. Residential households in Houston use between 14,000 and 16,000 kWh of electricity each year.
The city is also home to large companies like Sysco Corporation (NYSE:SYY), ConocoPhillips (NYSE:COP), Exxon Mobil Corporation (NYSE:XOM), and Halliburton Company (NYSE:HAL).
3. Chicago, IL
Average Annual Electricity Usage: 30.2 billion kWh
Chicago bagged the 3rd place in our list of the 25 cities with the highest electricity consumption in the US. Chicago, a major city on Lake Michigan in Illinois, consumes about 30.2 billion kilowatt-hours (kWh) of electricity annually. On average, households in Chicago use between 7,000 and 9,000 kWh of electricity per year.
Chicago earned the nickname “Windy City,” which started becoming popular in 1856. The name not only references the city’s actual wind but also reflects historical political bragging and rivalries with other major cities like Cincinnati and New York. Chicago, however, topped our list of the 16 most corrupt cities in the US, with 1,824 convictions from 1976 to 2021.
2. Los Angeles, CA
Average Annual Electricity Usage: 46.3 billion kWh
Los Angeles ranks 2nd in our list of the 25 cities with the highest electricity consumption in the US. Los Angeles, known for its film industry, celebrity culture, and beautiful beaches, consumes about 46.3 billion kWh of electricity each year. Of this, roughly 40% is used by residential areas, 35% by commercial sectors, and 10% by industrial activities. Additionally, the city uses about 1.3 billion therms of natural gas annually. Overall, Los Angeles’ energy use results in approximately 4.3 million metric tons of CO2 emissions each year.
1. New York, NY
Average Annual Electricity Usage: 55.7 billion kWh
Topping our list of the 25 cities with the highest electricity consumption in the US is New York City. Known for its finance, culture, and landmarks like Times Square and the Statue of Liberty, New York City consumes about 55.7 billion kWh of electricity each year. Of this, residential areas use around 35%, commercial sectors use about 60%, and industrial activities account for roughly 5%. The city also uses around 2.4 billion therms of natural gas annually. About 30% of the city’s electricity comes from renewable sources like solar, wind, and hydropower. Overall, New York City’s energy use leads to approximately 6.5 million metric tons of CO2 emissions each year. New York City is considered the best city to live in the world in 2024 based on our research.
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Disclosure: None. This article is originally published on Insider Monkey.
