As Americans brace for what could be the hottest summer on record, the personal finance website WalletHub has released its 2024 report on Energy Costs by State. This comprehensive study, along with expert commentary, sheds light on how energy bills vary across the country and what factors contribute to these differences.
According to WalletHub’s analysis, New Mexico stands out as the state with the lowest average monthly energy costs. Residents of New Mexico enjoy an average monthly energy bill of just $376, making it the most cost-effective state for energy consumption. This is in stark contrast to Wyoming, which tops the list with the highest average monthly energy bill of $1,591.
WalletHub’s report compares the average monthly energy bills in each of the 50 states using a special formula that considers various residential energy types, including electricity, natural gas, motor fuel, and home heating oil. Here’s a snapshot of the findings:
States with the Lowest Energy Costs:
- New Mexico ($376)
- Arizona ($400)
- Kansas ($436)
- Texas ($437)
- Nebraska ($453)
- Mississippi ($457)
- Florida ($462)
- Colorado ($470)
- Louisiana ($474)
- California ($476)
States with the Highest Energy Costs:
- Wyoming ($1,591)
- North Dakota ($840)
- Iowa ($798)
- Montana ($787)
- Minnesota ($782)
- Massachusetts ($759)
- Connecticut ($750)
- Alaska ($716)
- South Dakota ($709)
- Virginia ($694)
The report also highlights various interesting facts about energy consumption across the U.S. For instance, Hawaii has the lowest average monthly consumption of electricity per consumer, which is 3.1 times lower than in Louisiana, the highest. Moreover, Washington boasts the lowest average retail price for electricity, which is 4.2 times lower than Hawaii’s.
In terms of natural gas prices, Idaho residents enjoy the lowest average residential price, which is 7.2 times lower than in Hawaii. When it comes to motor fuel consumption, New York drivers use the least, averaging 2.9 times lower than drivers in Wyoming.
For a detailed look at the rankings and to view the full report, visit WalletHub’s Energy Costs by State 2024.
Expert Tips for Reducing Energy Costs
Experts from WalletHub offer valuable advice on lowering energy bills. A WalletHub analyst, Cassandra Happe points out that simple measures like using energy-efficient light bulbs and moderating air conditioning and heating use can make a difference. Additionally, considering energy costs when planning a move can help families save significantly on their monthly bills.
Steven Hegedus, a Senior Scientist at the Institute of Energy Conversion, University of Delaware, suggests practical tips such as drying clothes on a clothesline instead of using a dryer and conducting home energy audits to identify cost-effective improvements like added insulation and energy-efficient windows.
Justin Perryman, an Adjunct Professor at Washington University School of Law, emphasizes the importance of reducing energy usage and shopping around for lower electricity prices in deregulated markets. He also notes that tax deductions and credits can be effective incentives for households to adopt energy-efficient measures.
With these insights, residents across the U.S. can take steps to manage their energy consumption better and potentially lower their monthly energy costs.
New Mexico has a temperate climate. We have a few good months where we do not really need added heat or air conditioning. That alone helps with the average. However, since we do have natural gas and oil, our pricing should be lower. New Mexicans should reap from the local natural resources to keep costs down. Also, our homes are on the smaller scale and do not require higher energy usage.
The states shown with the highest is the result of being overun by rich liberals from other areas. Those cali license plates should be of concern…everything will go up.
they forgot propane costs. electricity is very expensive here so i do not believe this.