Average electricity prices rose 5.3% nationwide in May 2026 compared to the same month last year, according to the latest monthly update from the U.S. Energy Information Administration released this week. Forty-four states and the District of Columbia saw higher average revenue per kilowatt-hour, with Hawaii experiencing the steepest increase at 31%, followed by Ohio and Illinois, both up 22%. The EIA calculates average retail revenues per kilowatt-hour as a stand-in for retail electricity rates and prices, using data collected on retail sales revenues and volumes.
The residential sector bore the heaviest burden, with average revenues climbing 6.2% to reach 18.44 cents per kilowatt-hour in May 2026, according to the EIA. Commercial customers saw prices increase 4.7% to 13.54 cents per kilowatt-hour, while industrial users faced a 5.1% rise to 8.71 cents per kilowatt-hour. Transportation sector prices jumped 5.3% to 14.34 cents per kilowatt-hour. Among the contiguous states, Rhode Island charged the highest average at 26.71 cents per kilowatt-hour, followed by California at 26.27 cents and Massachusetts at 25.12 cents. New Mexico had the lowest average at 8.07 cents per kilowatt-hour, with North Dakota at 8.67 cents and Oklahoma at 9.03 cents. Only five states saw prices decline, led by New Mexico down 12%, Connecticut down 10%, and Arizona down 4%. Texas remained flat compared to last May.
Retail electricity sales volumes increased 2.4% nationally in May 2026 versus the prior year, serving as a proxy for end-use electricity consumption. The commercial sector led growth with sales up 3.4% to 124,044 thousand megawatt-hours, while transportation sector sales rose 3.0% to 572 thousand megawatt-hours. Industrial sales climbed 1.9% to 88,821 thousand megawatt-hours, and residential sales increased 1.7% to 106,659 thousand megawatt-hours. Forty-two states posted higher retail sales volumes, with West Virginia showing the largest gain at 17.0%, followed by Rhode Island and Nebraska, both up 11.0%. Eight states and the District of Columbia experienced declining sales volumes, led by Pennsylvania down 2.9%, New York down 2.7%, and Massachusetts down 2.3%.
The EIA notes that charges for retail electric service stem primarily from rates approved by state regulators, though some states have allowed retail marketers to compete to serve customers at market-based prices. The agency doesn't directly collect retail electricity rates or prices, instead calculating average retail revenues per kilowatt-hour from sales revenue and volume data. Weather patterns played a role in consumption changes, with thirty-eight states and the District of Columbia seeing increased cooling degree days compared to last May. Rhode Island had the highest year-over-year jump in cooling degree days at 1,200%, followed by Connecticut up 675% and New York up 633%, while California saw the steepest decline at 55%.
The data suggests electricity costs continue climbing across most of the country even as consumption grows more modestly, putting pressure on household and business budgets alike. With prices rising faster than sales volumes in every customer sector, Americans are paying significantly more for roughly the same amount of power. Year-to-date residential sales reached 587,019 thousand megawatt-hours, while commercial totaled 603,713 thousand megawatt-hours and industrial hit 421,749 thousand megawatt-hours through May 2026. The gap between the highest-priced states and the lowest remains stark, with Rhode Island customers paying more than three times what New Mexico residents face per kilowatt-hour.