U.S. Residential Electricity Prices Rose 5% in June

U.S. residential electricity prices rose 5% in June from a year earlier even as residential electricity sales barely changed, according to preliminary federal data released August 26, 2026.

The latest figures show higher average electricity prices and revenue—not a national surge in household electricity demand—as the main change in the market. That distinction matters for household budgets, although a national or state average does not show what any individual customer paid.

What changed nationally

The U.S. Energy Information Administration reported average residential revenue of 18.34 cents per kilowatt-hour in June 2026, compared with 17.47 cents in June 2025. EIA uses average revenue per kilowatt-hour as a proxy for retail electricity prices because it does not directly collect every retail rate or price.

Residential electricity sales totaled 135,594 million kilowatt-hours, down 0.2% from 135,822 million kilowatt-hours a year earlier. Residential electricity revenue increased from $23.731 billion to $24.874 billion, a 4.8% rise.

In other words, the amount of electricity sold to residential customers was essentially flat while revenue and average revenue per kilowatt-hour increased. The data do not establish that households used substantially more electricity nationwide during June.

How EIA measures the price

EIA calculates average revenue per kilowatt-hour by dividing reported electricity revenue by reported sales. The measure is useful for tracking the average amount collected for electricity service, but it is not the same as a single posted rate or a typical household bill.

EIA also cautions that sales and associated revenue accumulate from bills covering periods that can vary by customer class and may include electricity used during or outside the calendar month. The June values were preliminary as of August 29, 2026.

Where prices rose most

Average residential revenue per kilowatt-hour increased in 43 states and the District of Columbia compared with June 2025. Hawaii recorded the largest year-over-year increase, at 35.5%. Delaware and the District of Columbia each posted a 13.5% increase.

Hawaii is a separate electricity market and should not be treated as directly comparable with the contiguous states. Among the contiguous states, California had the highest June average residential revenue at 28.50 cents per kilowatt-hour. Massachusetts followed at 25.72 cents, and Rhode Island at 25.30 cents.

The lowest contiguous-state averages were reported in New Mexico, at 8.96 cents per kilowatt-hour; North Dakota, at 9.01 cents; and Wyoming, at 10.10 cents. California’s average was more than three times New Mexico’s.

Why household bills may look different

A household bill depends on more than the energy charge. Usage, fixed monthly fees, delivery charges, taxes, time-of-use pricing, utility territory and the length of the billing period can all affect the total.

Customers should compare their utility’s tariff and bill details before using the EIA average as a benchmark. A household with lower electricity use may still receive a sizable bill because of fixed charges, while a higher-use household may pay more even in a state with a lower average price.

How the figures fit broader price trends

Longer-term research reported by Utility Dive found that U.S. electric rates rose faster than inflation in 2025, with infrastructure spending, utility investment and other factors contributing to rate pressure in some regions. That broader analysis helps place the June figures in context, but the EIA data do not identify one cause for the national increase.

The Bureau of Labor Statistics measures electricity differently in the Consumer Price Index. Its July 2026 data showed the electricity index up 4.2% over the previous 12 months and 0.1% from June. That is a different month and a different statistical measure from EIA’s average revenue per kilowatt-hour, so the figures should not be treated as interchangeable.

EIA’s next Electric Power Monthly release is scheduled for September 24, 2026, when July data are expected to provide the next national and state-level comparison.

Sources

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