This brief article will shed light on the top 5 states with low electricity rates and their grid network. You can learn more about the country’s grid by reading 20 States That Have The Cheapest Electricity In The US.
5. Tennessee
Electricity Cost in Cents per Kilowatt-Hour (kWh): 12.33
In Tennessee, the Tennessee Valley Authority (TVA), a federally-owned corporation, significantly influences the state’s affordable electricity costs. The TVA owns approximately 90% of the state’s electricity generation capacity and nearly three-fifths of its power plants. Its diverse energy portfolio, including nuclear, hydro, and renewable energy, ensures a stable and low-cost electricity supply.
The TVA’s commitment to energy efficiency also aids in managing demand and mitigating strain on the grid. Tennessee’s investment in nuclear energy further contributes to affordability, offering a reliable and cost-effective electricity source. The Watts Bar 2 generating plant, the first new nuclear power plant reactor in the U.S. to commence service in the 21st century, is located in Tennessee. Along with the Browns Ferry and Sequoyah nuclear plants, the Watts Bar plant contributed to 45% of Tennessee’s electricity generation in 2022.
4. Idaho
Electricity Cost in Cents per Kilowatt-Hour (kWh): 11.82
Idaho, boasting the fourth-lowest electricity prices in the country, primarily benefits from its inexpensive hydropower, which represents about 51% of its power. Additionally, the state’s investment in renewable energy sources, such as wind and solar, is increasing, thereby enhancing grid reliability. In 2022, renewable energy sources comprised 75% of Idaho’s electricity, making it the fourth-highest in state-level shares.
3. Utah
Electricity Cost in Cents per Kilowatt-Hour (kWh): 11.75
Utah’s electricity prices benefit from its abundant natural resources, particularly coal and natural gas, which are the state’s primary electricity generation sources. This abundance ensures a stable and low-cost electricity supply. However, it is notable that the state’s reliance on coal-fired plants has decreased, with coal’s contribution to electricity generation dropping from 75% in 2015 to 53% in 2022. Concurrently, gas-fired electricity generation increased from 20% to 26%. Most notably, renewable energy generation in Utah has surged from 0.1% to 9% since 2015, showcasing the state’s commitment to sustainability.
2. Louisiana
Electricity Cost in Cents per Kilowatt-Hour (kWh): 11.23
Louisiana’s electricity costs are influenced by its significant natural gas production, a cheap and reliable power source. Currently, natural gas accounts for 68% of the state’s power generation, supported by substantial gas reserves. The state’s proximity to the Gulf of Mexico ensures a consistent natural gas supply, maintaining low production costs. Additionally, Louisiana’s investment in nuclear energy enhances both the stability and affordability of its electricity supply.
1. Washington
Electricity Cost in Cents per Kilowatt-Hour (kWh): 11.16
Washington State is renowned for its extensive use of hydroelectric power, which provides 31% of the state’s electricity and is the highest percentage in the U.S. The Grand Coulee Dam, located on the Columbia River, is the largest power plant in the U.S. by capacity, supplying nearly 21,000 gigawatt-hours of electricity to eight states and parts of Canada. This abundant, reliable, and cost-effective hydro energy source is crucial to the state’s low electricity costs. Furthermore, Washington’s dedication to energy efficiency and conservation is vital in managing electricity demand, ensuring a balanced and economical power grid.
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