A new analysis ranks California among the states with the highest electricity costs in the country, with average rates more than twice the national average.
The Institute for Energy Research and Always on Energy Research created Blue States, High Rates, a website featuring an interactive nationwide map. The map ranks California second for the most expensive electricity prices.
California’s average electricity rate reached 27.63 cents per kilowatt-hour (kWh) in 2025—103% above the national average of 13.63 cents.
“The state’s trajectory is alarming: since 2018, the average retail price of electricity rose 11.05 cents per kWh, the largest absolute increase of any state, and California collapsed from 7th to 2nd-most expensive,” the website stated.
“After adjusting for inflation, California’s prices rose 29.9% since 2018. States that adopted aggressive mandates later are catching up. California, having adopted them first, is showing the rest of the US where those mandates lead,” the site added.
The interactive map covers all 50 states, the District of Columbia and 10 regional transmission organizations (RTOs). These independent, nonprofit groups operate multi-state electric grids and manage wholesale electricity markets.
The rankings were based on six criteria, including access to natural gas and each state’s net-zero greenhouse gas emissions goals.
Hawaii ranked first at 35.72 cents per kWh, while North Dakota had the lowest rate at 8.2 cents per kWh.
“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,” said Amy Cooke, CEO of Always on Energy Research.
“Blue States, High Rates captures what we’ve been saying for years: Bad energy policy leads to higher electricity rates,” Cooke added.
When the San Diego Union-Tribune sought a response, Gov. Gavin Newsom’s team referred the newspaper to an exchange between the governor and the U.S. energy secretary in March.
California, home to more than 39 million people, has recorded electricity rates at least 10% higher than the national average since the late 1980s, according to the Public Policy Institute of California.
