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.

[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

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)

StateFeb 2025Feb 2026Change (¢/kWh)Change (%)
Virginia9.10¢13.01¢+3.91¢+43.0%
Nebraska8.21¢10.41¢+2.20¢+26.8%
Ohio11.15¢14.30¢+3.15¢+28.3%
Maryland14.35¢18.11¢+3.76¢+26.2%
Maine20.20¢23.97¢+3.77¢+18.7%
Pennsylvania12.17¢14.86¢+2.69¢+22.1%

States Where Rates Declined

StateFeb 2025Feb 2026Change (¢/kWh)Change (%)
Rhode Island26.43¢24.06¢−2.37¢−9.0%
Hawaii38.77¢38.62¢−0.15¢−0.4%
Nevada9.71¢8.96¢−0.75¢−7.7%
Connecticut25.83¢24.59¢−1.24¢−4.8%
West Virginia12.37¢11.75¢−0.62¢−5.0%
Arizona11.96¢11.72¢−0.24¢−2.0%
New Mexico10.55¢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.
Metric Deregulated States (17+DC) Regulated States (33)
Avg. commercial rate (Feb 2026)17.4¢/kWh11.4¢/kWh
Customer can shop for supplyYes — multiple retail suppliersNo — utility monopoly
Price riskMarket-exposed (fixed or index contracts)Regulated rate cases (slower adjustments)
Savings leverRFP, fixed-rate contracts, index strategiesEfficiency, demand reduction, rate tariff selection
Rate volatility (5yr avg.)Higher — market-drivenLower — PUC-regulated

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.

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Frequently Asked Questions

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.
Original Analysis

What This Means By Building Type

State average rates tell you where costs are high. This analysis translates them into actual dollar spreads by building type — using EIA CBECS 2018 load profiles for energy intensity per square foot. The spread between high-cost states (CA, MA, HI) and low-cost states (TX, OK, ND) is not theoretical — it compounds into millions of dollars for multi-location portfolios.

Building Type Intensity (kBtu/sqft/yr) Annual Cost / Sqft — TX (8.90¢) Annual Cost / Sqft — CA (24.73¢) Spread / Sqft / Yr
Restaurant (QSR) 285 kBtu $0.74 $2.07 $1.33
Grocery / Supermarket 522 kBtu $1.36 $3.78 $2.42
Office (commercial) 85 kBtu $0.22 $0.62 $0.40
Healthcare (hospital) 478 kBtu $1.25 $3.46 $2.21
Hotel 171 kBtu $0.45 $1.24 $0.79

Energy intensity from EIA CBECS 2018, Table E1 (kBtu/sqft/yr for electricity). Rate: EIA Electric Power Monthly Table 5.6.A, February 2026. Conversion: 1 kWh = 3.412 kBtu. CA uses PG&E territory average (24.73¢/kWh); TX uses ERCOT average (8.90¢/kWh). Electricity cost only — excludes natural gas, demand charges.

Portfolio-Level Example

A 200-location restaurant chain with 2,500 sqft average store size spending at the California rate (24.73¢/kWh) pays $51.75/sqft/year in electricity — versus a comparable chain in Texas at 8.90¢/kWh paying $18.50/sqft/year. Across a 200-location portfolio at 2,500 sqft each, the portfolio-level spread is $16.6 million/year — the difference between operating in CA vs. TX at identical energy intensity.

Source: EIA Electric Power Monthly Table 5.6.A (Feb 2026) × EIA CBECS 2018 restaurant energy intensity (285 kBtu/sqft/yr electricity) × 200 locations × 2,500 sqft. EnergyStackHub analysis, May 2026.

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