Why is Electricity Costs in the Northeast So High?

If you live in New England, you may have noticed that your utility bills are higher than usual. You’re not alone – many residents in the Northeast have been experiencing a price hike. In fact, most U.S. states have seen their electricity rates go up in the last year.

There have been a few explanations for costs going up, from the aftereffects of the pandemic to the war between Russia and Ukraine. Our chart below can help you determine where your state ranks, and we’ll give you some tips and tricks to help you save on your electricity bill this season.

Residential Electricity Cost By State 2021 and 2022—Lowest to Highest

State Rate in 2022 (Cents/kWh) Rate in 2021 (Cents/kWh)
  1. North Dakota
10.03 10.18
  1. Idaho
10.07 9.99
  1. Washington
10.14 9.96
  1. Nebraska
10.36 10.13
  1. Utah
10.55 10.06
  1. Wyoming
10.69 10.79
  1. Montana
10.76 10.93
  1. Arkansas
10.90 10.27
  1. Oregon
11.01 11.10
  1. Missouri
11.04 10.37
  1. Louisiana
11.05 10.15
  1. Oklahoma
11.21 8.90
  1. South Dakota
11.35 11.30
  1. Tennessee
11.49 10.73
  1. Iowa
11.73 11.30
  1. Kentucky
11.98 11.03
  1. North Carolina
12.24 11.45
  1. Virginia
12.54 11.71
  1. Mississippi
12.66 11.52
  1. Arizona
12.68 12.18
  1. Texas
12.80 11.50
  1. Ohio
12.87 12.44
  1. Georgia
12.89 11.83
  1. Delaware
13.16 12.11
  1. Kansas
13.32 12.85
  1. West Virginia
13.34 12.49
  1. Nevada
13.39 11.96
  1. Minnesota
13.40 12.89
  1. New Mexico
13.44 12.74
  1. Florida
13.50 11.65
  1. Colorado
13.61 12.33
  1. Alabama
13.71 13.35
  1. South Carolina
13.91 13.28
  1. Washington D.C.
14.04 12.91
  1. Maryland
14.16 12.84
  1. Indiana
14.29 13.17
  1. Pennsylvania
14.70 13.25
  1. Illinois
14.73 13.88
  1. Wisconsin
15.20 14.35
  1. New Jersey
16.93 15.64
  1. Michigan
17.43 17.17
  1. New York
19.74 18.04
  1. Vermont
19.80 18.75
  1. Alaska
22.82 22.04
  1. New Hampshire
22.97 19.23
  1. Maine
23.03 16.42
  1. Rhode Island
23.46 23.35
  1. Massachusetts
25.33 23.29
  1. Connecticut
25.61 22.74
  1. California
26.71 22.71
51. Hawaii 39.97 32.96

Data sourced from https://quickelectricity.com/cost-of-electricity-per-kwh-by-state/

Why Are Electricity Costs in the Northeast So High?

New England’s utilities are powered by natural gas. Natural gas was once the cheapest option with the highest supply for consumers, but prices began to increase once the US began exporting liquified natural gas. Fossil fuels are a finite resource, and the burden of the Ukraine war and production freezes due to the COVID-19 pandemic have only driven prices higher.

New England also has a particularly difficult time getting natural gas. The six states in the Northeast don’t sit on any fossil fuel reserves and are at the end of the gas pipeline, meaning liquified natural gas has to be imported in.

New England Utilities Companies Are Hiking Rates

No matter what utility company you receive your monthly statements from; you’ll likely notice higher costs for your gas and electric. National Grid and Eversource have announced price hikes for customers this winter, blaming the pandemic and the Russian invasion of Ukraine.

Natural Grid Price Increases

Natural Grid announced in September that the average customer would see a 64% increase in their electric bills this winter, and gas bills would be 22% higher than usual. They cited the war in Ukraine, inflation, and high demand as the reason behind their price hikes.

Eversource Price Increases

If you are an Eversource customer, you may have seen an up to 43% increase in your bill compared to last winter. Citing “global pressures” and the Ukraine war, their actual rates won’t be updated until February 1, 2023.

8 Ways To Save On Your Electricity Bill This Winter

An unexpected price increase on your electricity bill can be a serious burden. Kuhlman Electric has a few recommendations to lower your home’s electricity usage and save on your monthly bill.

1. Install a Smart Thermostat

Heating your home in the winter is likely the biggest reason you’ll see a price increase. Smart thermostats will allow you to input your behaviors, like what times you’ll be home during the day and what temperature you prefer, and will learn to save energy by lowering your heat when you aren’t home. They’ll also learn how long it takes to heat your home, so you’ll still feel comfortable when you walk in the door.

2. Check Your Home’s Insulation

If your home isn’t properly insulated, you could be letting precious heat escape your home. If you notice a draft in certain rooms or feel like your heat is constantly running but not warming up your house, it may be time to look into replacing your insulation.

3. Let The Sun In During The Day And Close Your Blinds At Night

Opening your blinds on a sunny day can allow heat to flood into your home, which means your heating system won’t have to do all the work. Closing your blinds after the sun sets traps the heat inside, leaving you with a warmer house on even the coldest night.

4. Place Rugs on Hardwood Floors

In addition to keeping your feet warm, placing an area rug on your hardwood floor can help you save on energy costs! They add an extra layer of insulation to your floor, trapping cold air underneath and preventing it from cooling the room. You can also add an insulated rug pad for extra comfort and warmth.

5. Unplug Unused Electronics

Leaving your electronics plugged in when not in use can contribute to up to 20% of unexpected energy costs. Unplugging your coffee maker, phone charger, or that unused TV in the guest room can all add up to help you save money.

6. Weatherstrip Your Doors and Windows

If you notice cold air coming in from closed doors and windows, that means that hot air is also going out. Weatherstripping closes up any gaps and seals the warmth inside your home. While this may seem like an added cost when you’re already putting out more than usual on electricity bills, weatherstripping is said to pay for itself in just one year by how much energy you’ll save!

7. Make Sure Your Circuit Breaker and Electrical Wiring Are Up To Code

Outdated wiring could be putting more of a load on your home’s electrical grid, which is both unsafe and a waste of energy. Kuhlman Electric offers home inspections to homeowners in MA and NH to guarantee that your wiring is up to code and as energy efficient as possible.

8. Upgrading Your Electrical Panel Can Save You Between 10% to 30% on Your Monthly Energy Bill

If you have an outdated breaker panel, the rooms in your home may not be receiving equal levels of electricity. Modern appliances put extra pressure on older homes, leading to higher energy costs. Kuhlman Electric will replace your electrical panels to efficiently channel power to where it needs to go inside your home, saving you up to 30% on your monthly electrical bill.

Small Savings Can Really Add Up

Being proactive in your efforts to save energy can have a big impact on your monthly electric bill. Contact Kuhlman Electric today for home inspections and electrical panel upgrades if you’re ready to start saving money by making your home more energy efficient.

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