California Electricity Costs Among Highest in Nation, Analysis Finds
A new study reveals California residents pay significantly more for electricity than the national average, ranking second in the U.S. for high utility costs.
California faces some of the highest electricity prices in the United States, with costs more than double the national average, according to a recent analysis.
The Institute for Energy Research and Always on Energy Research developed a website, "Blue States, High Rates," to illustrate electricity price disparities across the country. Their findings place California second nationwide for the most expensive electricity, with Hawaii ranking first.
In 2025, California's average electricity price stood at 27.63 cents per kilowatt-hour (kWh), which is 103% higher than the national average of 13.63 cents per kWh. The analysis notes that since 2018, California has experienced the largest absolute increase in average retail electricity prices of any state, falling from seventh to second-most expensive.
Adjusted for inflation, California's electricity prices have risen by 29.9% since 2018. The report suggests that states adopting aggressive energy mandates later are now catching up, and California's early adoption of such policies is indicative of their potential outcomes.
The "Blue States, High Rates" interactive map analyzes all 50 states and the District of Columbia, alongside 10 regional transmission organizations (RTOs). The ranking considers six criteria, including access to natural gas and a state's net-zero emission goals.
Hawaii recorded the highest price at 35.72 cents per kWh, while North Dakota had the lowest at 8.2 cents per kWh.
Amy Cooke, CEO of Always on Energy Research, stated that "Eighty-six percent of continental states with electricity prices above the national average voted Democratic in both 2020 and 2024, while 90 percent of the ten cheapest states voted Republican in both elections." She added, "Blue States, High Rates captures what we’ve been saying for years: bad energy policy leads to higher electricity rates."
When approached for comment by the San Diego Union-Tribune, Governor Newsom's office referred to a previous exchange between the U.S. Energy Secretary and the governor regarding energy policy.
According to the Public Policy Institute of California, California has experienced electricity rates at least 10% higher than the rest of the country since the late 1980s.