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What are the most and least energy expensive states?

Source: WalletHub

With July tending to be the hottest month of the year, consumers are cranking up their air conditioners – and, a result, their utility budgets. In addition, Trump administration policies are causing gas prices to go up. Also, lurking in the background are proposals by Trump and his agencies to have the American taxpayers bail out coal and nuclear industries, under the guise of national security, by providing government assistance to those coal and nuclear power plants that are struggling to be profitable. If adopted, these changes would be costlier to consumers.

In the United States, energy costs are between 5 and 22 percent of families’ total after-tax income, with the poorest Americans, or 25 million households, paying the highest of that range. And lower energy prices don’t necessarily lead to savings. Where consumers live and how much energy they use are a big part of the costs. For example, although electricity is cheaper in Southern Louisiana, its high summer heat raises costs for residents compared with the temperate climate in more energy-expensive coastal Northern California, where heating and cooling units stay idle most of the year.

To look at how Americans’ energy costs are linked location and consumption habits, WalletHub, a personal finance website, compared the average monthly energy bills in the 50 states and the District of Columbia using a formula for the following residential energy types: electricity, natural gas, motor fuel, and home heating oil:

Most energy-expensive states

 

Least energy-expensive states

1.

Wyoming – $372

 

42.

Nebraska – $285

2.

Connecticut – $366

 

43.

New Mexico – $284

3.

Georgia – $349

 

44.

Arkansas – $282

4.

Alabama – $341

 

45.

Louisiana – $280

5.

Mississippi – $340

 

46.

Illinois – $279

6.

Alaska – $338

 

47.

Iowa – $277

7.

Indiana – $337

 

48.

Oregon – $277

8.

West Virginia – $332

 

49.

Washington – $253

9.

Oklahoma – $331

 

50.

Colorado – $252

10.

North Dakota – $330

 

51.

District of Columbia – $203


Best vs. worst

  • Hawaii has the lowest average monthly consumption of electricity per consumer, 481 kWh, which is 3.1 times lower than in Louisiana, the highest at 1,475 kWh.
     
  • Louisiana has the lowest average retail price for electricity, 9.34 cents per kWh, which is 2.9 times lower than in Hawaii, the highest at 27.47 cents per kWh.
     
  • North Dakota has the lowest average residential price for natural gas, $7.21 per 1,000 cubic feet, which is 5.1 times lower than in Hawaii, the highest at $36.48 per 1,000 cubic feet.
     
  • The District of Columbia has the lowest average monthly motor-fuel consumption per driver, 23.97 gallons, which is 3.1 times lower than in Wyoming, the highest at 75.30 gallons.
     
  • In Northeastern states, between 10 percent and 65 percent of households use heating oilto heat their homes, compared with less than 3 percent of households in the rest of the U.S.
Copyright 2018, Rita R. Robison, Consumer Specialist

Comments

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sue@sizzlingtowardssixty.com.au

Energy prices have more than doubled in Australia, Rita and is certainly going to be an election issue. The problem is that renewables cost so much to set up and Australia does have many coal reserves - we export most of it! It is a hot (no pun intended) issue at the moment as many people can't afford to heat their homes in winter.

Rebecca Forstadt Olkowski

When I was living in a house in Los Angeles the utility bill was almost like a mortgage payment. I guess California must be in the middle somewhere because we have mild weather for the most part. Interesting.

Rita

Sue,

It's good energy costs are going to be an election issue in Australia. It's crazy that Australia has man coal reserves, which are mostly exported.

Rita


Rita

Hi Rebecca,

Yes, California is in the middle, 28th with an average of $303 per month.

Rita

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