Average Utility Bill by State (2023)

In this article, we'll explore the varying expenses associated with essential utilities such as electricity, water, gas, and more across different states in the United States. Then we’ll take a brief look at what impacts the cost of utilities and how you can reduce your utility bills.

• What Is the Average Utility Bill in the U.S.?
• Utility Costs by State
• What Impacts the Cost of Utilities?
• How To Save Money on Utility Bills

Key Utility Bill Stats

• Americans pay an average of $469 per month for their utility bills.

• Electricity, cable, and internet typically account for over half of home utility costs.
• Alaska ($630), Georgia ($598), and Oregon ($558) have the highest monthly average utility bills in the U.S.
• Wisconsin ($387), Michigan ($387), and New Mexico ($395) have the lowest utility bills.

What Is the Average Utility Bill in the U.S.?

The average utility bill in the U.S. is $469 per month. Electricity is typically the most expensive component. Here’s a breakdown of the average American's household utility costs:

• Electricity ($137)
• Cable and internet ($114)
• Sewer, garbage, and recycling ($66)
• Gas ($65)
• Streaming ($48)
• Water ($39)

Less than 30% of households in the U.S. have a landline phone which is included in the cable and internet costs in this breakdown. Mobile phone bills are not considered home utility costs.

Components of an Average Utility Bill

Electricity, cable, and internet typically account for over half of home utility costs. Here’s a percentage breakdown of the average home utility costs.

Utility Costs by State

Alaska ($630), Georgia ($598), and Oregon ($558) typically have the highest monthly average utility bills in the U.S. Wisconsin ($387), Michigan ($387), and New Mexico ($395) have the lowest utility costs.

Here we can see a visual representation of the monthly utility costs across the U.S.

Utility prices vary by region. For example, electricity is typically more expensive in the Southeast compared to the West Coast and Midwest. However, the West Coast states typically have much higher water bills than both Southern and Midwestern states.

Here’s a table of the average utility bills by state:

What Impacts the Cost of Utilities?

Here are the things that affect how much you pay for utilities at home:

Where You Live: If you live in a place with mild weather, you might spend less on heating and cooling because you don't need them as much.

How Much Energy You Use: If you use a lot of electricity and gas, your bills will be higher. Households with more members typically have higher utility bills because more people are using basic utilities such as energy and water.

Home Energy Efficiency: If your home is well-insulated and has energy-efficient windows, you'll lose less heat or cool air and spend less on utilities. Old, single-pane windows can make your home drafty and cause heat to escape.

Size and Design of Your Home: Bigger homes need more energy for heating, cooling, and lighting, which can lead to higher bills. The way your home is laid out, like open spaces, can also affect costs because they may need more consistent temperature control.

How To Save Money on Utility Bills

Managing your utility bills effectively can lead to substantial savings over time. By adopting smart practices and making a few simple changes around your home, you can reduce your utility expenses without sacrificing comfort or convenience. Here are some practical tips to help you save money on your utility bills:

Energy-Efficient Appliances: Invest in energy-efficient appliances. Look for the ENERGY STAR label when purchasing appliances like refrigerators, washing machines, and dishwashers. These appliances are designed to consume less electricity, which can translate into significant long-term savings.

Adjust Thermostat Settings: Be mindful of your thermostat settings. Lowering the thermostat during the winter and raising it during the summer by just a few degrees can lead to noticeable savings. Consider installing smart home devices such as a smart thermostat to automate temperature adjustments when you're away or asleep.

Seal Leaks and Insulate: Seal any gaps or cracks in your home's windows, doors, and walls to prevent drafts. Proper insulation in your attic and walls can also reduce heat loss in the winter and keep your home cooler in the summer, reducing the need for heating and cooling.

Upgrade Lighting: Replace traditional incandescent bulbs with energy-efficient LED or CFL bulbs. These bulbs use significantly less energy and last longer. Additionally, remember to turn off lights when you leave a room to save on electricity costs.

Unplug Unused Electronics: Many electronic devices continue to consume power even when turned off but are still plugged in. Unplug chargers, gaming consoles, and other devices when they're not in use, or use power strips that can be easily switched off.

Water-Saving Fixtures: Install low-flow faucets and showerheads to reduce water consumption. Fix any leaks promptly, as even small drips can add up to significant water bills over time.

Use Appliances Wisely: Run your dishwasher and washing machine with full loads to maximize their efficiency. When using the oven, cook multiple dishes at once to reduce cooking times and energy consumption.

Time-of-Use Plans: Inquire with your utility company about time-of-use plans. These plans offer cheaper rates during off-peak hours, encouraging you to perform energy-intensive tasks like laundry or running the dishwasher during those times.

Regular System Maintenance: Schedule regular maintenance for your heating, cooling, and water systems. A well-maintained system operates more efficiently, reducing energy and water waste.

Solar Panels and Renewable Energy: If feasible, consider using solar energy via solar panels or using renewable energy sources. While the initial investment can be significant, these options can lead to substantial long-term savings and even generate income if you produce excess energy.

Behavioral Changes: Encourage energy-saving habits among your household members. Simple actions like turning off lights when leaving a room, taking shorter showers, and not overfilling the kettle can collectively make a difference in your utility bills.

By implementing these strategies and being mindful of your utility consumption, you can take control of your expenses and enjoy reduced utility bills while contributing to a more sustainable future.

Conclusion

Utility costs vary significantly across the United States, with Americans paying an average of $469 per month for their essential services. Electricity, cable, and internet are the primary contributors to these bills, representing over half of home utility expenses.

It's noteworthy that states like Alaska, Georgia, and Oregon tend to have the highest monthly utility bills, with averages exceeding $550. On the other hand, residents of Wisconsin, Michigan, and New Mexico enjoy some of the lowest utility costs, with monthly averages below $400.

These statistics highlight the regional differences in utility expenses. Whether you reside in a high-cost or low-cost state, implementing energy-saving measures can help you take control of your utility expenses and achieve greater financial stability.

Sources

U.S. Energy Information Administration

Consumer Reports

Deloitte

WiseVoter