15 US Cities Where Electricity Bills Are Sky-High: Birmingham-Hoover Is Most Expensive - Commodity.com (2024)

Disclosure: Your support helps keep Commodity.com running! We earn a referral fee for some we list on this page. Learn more...

Last Updated:

15 US Cities Where Electricity Bills Are Sky-High: Birmingham-Hoover Is Most Expensive - Commodity.com (1)

Summer brings with it two certainties: rising temperatures and rising electric bills.

In 2020, renters and homeowners spent more time in their residences amid pandemic closures and companies shifting to work-from-home models. Homes and apartments that were previously dormant during work hours were suddenly filled with people working and kids attending online school.

Amid this new reality, heat waves blanketed the country, causing a spike in energy use as Americans tried to keep their homes cool. Energy bills shot up and, for some, the higher bills were simply too expensive. Lawmakers did their best to curb the crisis by implementing moratoriums on utility shut-offs.

These heat waves weren’t an aberration, according to the Environmental Defense Fund. In fact, the number of deadly heat waves that swept the nation tripled from the 1960s to the 2010s, and they’re expected to continue.

For the average electricity customer, that means that rates are likely to rise as demand rises, and bills are bound to go up. According to the Census Bureau, electricity already accounts for nearly 60% of residential utility bills and more than 12% of total housing costs for owner-occupied households.

And if the past two decades are any indication — rates have increased 70% — the future looks to be an expensive one.

15 US Cities Where Electricity Bills Are Sky-High: Birmingham-Hoover Is Most Expensive - Commodity.com (2)

While the data is clear that electricity prices are on the rise, some states are feeling the increase far more than others.

Hawaiians paid the highest rates at an average of 30.32 cents per kWh in 2020, which is more than 30% higher than Alaskans, whose electricity rates are the second most expensive in the nation.

The next three states with the highest rates are in New England: Connecticut, Massachusetts, and Rhode Island. Conversely, Oklahoma, Washington, and Louisiana are the only three states in the country with residential electricity rates below 10 cents per kWh.

15 US Cities Where Electricity Bills Are Sky-High: Birmingham-Hoover Is Most Expensive - Commodity.com (3)

Knowing a state’s energy prices is just part of understanding the economics of electricity for its residents.

A state with expensive electricity rates doesn’t necessarily have the highest median electricity bills, which are a function of both energy prices and consumption. For example, Hawaii’s electricity costs more than any other state, but the median electric bill of $140 ranks 26th.

According to data from the Census Bureau, residents in the South report the highest median electricity bills, with Alabama residents topping the list at $200 per month.

Alabamans are paying not just more than any other state on a monthly basis, but their electricity bills make up 75.5% of their utility bill and 26.6% of their housing costs, both the highest in the nation.

Other states with median electricity bills topping $160 per month include Texas, South Carolina, Georgia, Mississippi, and Tennessee.

RELATED
Increased renewable energy production will result in significant changes in US electricity bills. Currently, Vermont is the leading state producing over 95% of its electricity via renewable sources.

15 US Cities Where Electricity Bills Are Sky-High: Birmingham-Hoover Is Most Expensive - Commodity.com (4)

RELATED
Learn all about trading natural gas futures, options in futures, stocks, and ETFs in our comprehensive natural gas trading guide.

To determine the metropolitan areas with the largest electric bills, researchers at Commodity.com analyzed Census Bureau data and calculated the median monthly electricity costs for owner-occupied, non-farm households. This data represents what residents pay in total for electricity on a monthly basis — a function of both electricity rates and electricity use.

In the event of a tie, the location with the higher median total utility costs — including gas, water, and other fuels — was ranked higher. Researchers also calculated median total housing costs, as well as the proportion of total housing and utility costs that electric bills account for.

To improve relevance, only metropolitan areas with at least 100,000 residents were included. Additionally, metros were grouped into cohorts based on population size:

  • Large: 1 million or more
  • Midsize: 350,000–999,999
  • Small: 100,000–349,999

Here are the metros with the highest electric bills.

15 US Cities Where Electricity Bills Are Sky-High: Birmingham-Hoover Is Most Expensive - Commodity.com (5)

Large Metros With the Highest Electric Bills

15 US Cities Where Electricity Bills Are Sky-High: Birmingham-Hoover Is Most Expensive - Commodity.com (6)

15. Atlanta-Sandy Springs-Alpharetta, GA

  • Median monthly electricity costs: $150
  • Median total utility costs: $253
  • Median total housing costs: $1,278
  • Electricity as a share of total utility costs: 59.4%
  • Electricity as a share of total housing costs: 11.7%
15 US Cities Where Electricity Bills Are Sky-High: Birmingham-Hoover Is Most Expensive - Commodity.com (7)

14. Virginia Beach-Norfolk-Newport News, VA-NC

  • Median monthly electricity costs: $150
  • Median total utility costs: $262
  • Median total housing costs: $1,407
  • Electricity as a share of total utility costs: 57.3%
  • Electricity as a share of total housing costs: 10.7%
15 US Cities Where Electricity Bills Are Sky-High: Birmingham-Hoover Is Most Expensive - Commodity.com (8)

13. Philadelphia-Camden-Wilmington, PA-NJ-DE-MD

  • Median monthly electricity costs: $150
  • Median total utility costs: $273
  • Median total housing costs: $1,417
  • Electricity as a share of total utility costs: 54.9%
  • Electricity as a share of total housing costs: 10.6%

DID YOU KNOW?
Oil is a highly volatile commodity, presenting traders with a high-risk/high-reward investment. Be sure to check out our tips for trading in the oil market.

15 US Cities Where Electricity Bills Are Sky-High: Birmingham-Hoover Is Most Expensive - Commodity.com (9)

12. Kansas City, MO-KS

  • Median monthly electricity costs: $150
  • Median total utility costs: $280
  • Median total housing costs: $1,153
  • Electricity as a share of total utility costs: 53.6%
  • Electricity as a share of total housing costs: 13.0%
15 US Cities Where Electricity Bills Are Sky-High: Birmingham-Hoover Is Most Expensive - Commodity.com (10)

11. New York-Newark-Jersey City, NY-NJ-PA

  • Median monthly electricity costs: $150
  • Median total utility costs: $300
  • Median total housing costs: $2,093
  • Electricity as a share of total utility costs: 50.0%
  • Electricity as a share of total housing costs: 7.2%
15 US Cities Where Electricity Bills Are Sky-High: Birmingham-Hoover Is Most Expensive - Commodity.com (11)

10. Baltimore-Columbia-Towson, MD

  • Median monthly electricity costs: $160
  • Median total utility costs: $240
  • Median total housing costs: $1,547
  • Electricity as a share of total utility costs: 66.7%
  • Electricity as a share of total housing costs: 10.3%
15 US Cities Where Electricity Bills Are Sky-High: Birmingham-Hoover Is Most Expensive - Commodity.com (12)

9. Phoenix-Mesa-Chandler, AZ

  • Median monthly electricity costs: $160
  • Median total utility costs: $242
  • Median total housing costs: $1,178
  • Electricity as a share of total utility costs: 66.2%
  • Electricity as a share of total housing costs: 13.6%

RELATED
Arizona is the third biggest solar power generating state with just over 5,000,000 MWhs annually, yet electricity prices are still one of the highest in the country.

15 US Cities Where Electricity Bills Are Sky-High: Birmingham-Hoover Is Most Expensive - Commodity.com (13)

8. Richmond, VA

  • Median monthly electricity costs: $160
  • Median total utility costs: $250
  • Median total housing costs: $1,234
  • Electricity as a share of total utility costs: 64.0%
  • Electricity as a share of total housing costs: 13.0%
15 US Cities Where Electricity Bills Are Sky-High: Birmingham-Hoover Is Most Expensive - Commodity.com (14)

7. San Antonio-New Braunfels, TX

  • Median monthly electricity costs: $170
  • Median total utility costs: $228
  • Median total housing costs: $1,075
  • Electricity as a share of total utility costs: 74.5%
  • Electricity as a share of total housing costs: 15.8%
15 US Cities Where Electricity Bills Are Sky-High: Birmingham-Hoover Is Most Expensive - Commodity.com (15)

6. Houston-The Woodlands-Sugar Land, TX

  • Median monthly electricity costs: $170
  • Median total utility costs: $257
  • Median total housing costs: $1,315
  • Electricity as a share of total utility costs: 66.2%
  • Electricity as a share of total housing costs: 12.9%
15 US Cities Where Electricity Bills Are Sky-High: Birmingham-Hoover Is Most Expensive - Commodity.com (16)

5. Dallas-Fort Worth-Arlington, TX

  • Median monthly electricity costs: $170
  • Median total utility costs: $278
  • Median total housing costs: $1,417
  • Electricity as a share of total utility costs: 61.1%
  • Electricity as a share of total housing costs: 12.0%

RELATED
Despite Texas being one of the highest wind energy-producing states, bills continue to be more costly than in most other US states. Such conflicting statistics are due to the varied distribution of renewable energy between retail and commercial consumers.

15 US Cities Where Electricity Bills Are Sky-High: Birmingham-Hoover Is Most Expensive - Commodity.com (17)

4. Orlando-Kissimmee-Sanford, FL

  • Median monthly electricity costs: $180
  • Median total utility costs: $225
  • Median total housing costs: $1,170
  • Electricity as a share of total utility costs: 80.0%
  • Electricity as a share of total housing costs: 15.4%
15 US Cities Where Electricity Bills Are Sky-High: Birmingham-Hoover Is Most Expensive - Commodity.com (18)

3. Jacksonville, FL

  • Median monthly electricity costs: $180
  • Median total utility costs: $228
  • Median total housing costs: $1,162
  • Electricity as a share of total utility costs: 78.8%
  • Electricity as a share of total housing costs: 15.5%
15 US Cities Where Electricity Bills Are Sky-High: Birmingham-Hoover Is Most Expensive - Commodity.com (19)

2. Memphis, TN-MS-AR

  • Median monthly electricity costs: $200
  • Median total utility costs: $252
  • Median total housing costs: $989
  • Electricity as a share of total utility costs: 79.5%
  • Electricity as a share of total housing costs: 20.2%

TRENDING
The quality of a trading platform can be judged by its ease of use and its features. Look for charting features and technical analysis tools. For more information on how to choose online brokers, read our comprehensive online broker guide.

15 US Cities Where Electricity Bills Are Sky-High: Birmingham-Hoover Is Most Expensive - Commodity.com (20)

1. Birmingham-Hoover, AL

  • Median monthly electricity costs: $200
  • Median total utility costs: $290
  • Median total housing costs: $926
  • Electricity as a share of total utility costs: 69.0%
  • Electricity as a share of total housing costs: 21.6%

Detailed Findings & Methodology

The data used in this analysis is from the United States Census Bureau’s American Community Survey Public Use Microdata Sample.

To determine the locations with the highest electric bills, researchers calculated the median monthly electricity costs for owner-occupied, non-farm households. In the event of a tie, the location with the higher median total utility costs — including gas, water, and other fuels — was ranked higher.

To improve relevance, only metropolitan areas with at least 100,000 residents were included. Additionally, metros were grouped into cohorts based on population size: small (100,000–349,999), midsize (350,000–999,999), and large (1,000,000 or more).

!function(e,i,n,s){var t=”InfogramEmbeds”,d=e.getElementsByTagName(“script”)[0];if(window[t]&&window[t].initialized)window[t].process&&window[t].process();else if(!e.getElementById(n)){var o=e.createElement(“script”);o.async=1,o.id=n,o.src=”https://e.infogram.com/js/dist/embed-loader-min.js”,d.parentNode.insertBefore(o,d)}}(document,0,”infogram-async”);

Photo Credits: Alamy Stock Photo

15 US Cities Where Electricity Bills Are Sky-High: Birmingham-Hoover Is Most Expensive - Commodity.com (2024)
Top Articles
Latest Posts
Article information

Author: Laurine Ryan

Last Updated:

Views: 5811

Rating: 4.7 / 5 (77 voted)

Reviews: 84% of readers found this page helpful

Author information

Name: Laurine Ryan

Birthday: 1994-12-23

Address: Suite 751 871 Lissette Throughway, West Kittie, NH 41603

Phone: +2366831109631

Job: Sales Producer

Hobby: Creative writing, Motor sports, Do it yourself, Skateboarding, Coffee roasting, Calligraphy, Stand-up comedy

Introduction: My name is Laurine Ryan, I am a adorable, fair, graceful, spotless, gorgeous, homely, cooperative person who loves writing and wants to share my knowledge and understanding with you.