Free tool
Is your commercial electricity rate high?
Compare what you pay per kWh with what businesses in your state pay on average, from official U.S. government data. Two numbers from one bill, and nothing leaves your browser.
In a worked example, a Texas business using 20,000 kWh and paying $2,310 before sales tax pays 11.55¢ per kWh. The Texas commercial average was 8.57¢ over the 12 months to August 2026, so this account pays 35% more. An average blends every size of business, so a gap is a reason to look, not proof of overpaying.
Source: U.S. Energy Information Administration, Form EIA-861M · August 2026
How to read the result
- Close to the average means your rate is not out of line with what businesses in your state pay. It does not mean it cannot improve, only that there is no gap to explain.
- Above the average is a reason to look at the bill, not a verdict. Small accounts usually pay more per kWh than large ones, and a business with sharp demand peaks pays more per kWh than one with a steady load.
- Below the average usually means a large or steady account, a good contract, or both. It is worth knowing when that contract ends.
What to enter, so the comparison is fair
Use the whole electricity bill for one month, not a single line from it. If you buy supply from a supplier on one bill and delivery from the utility on another, add the two together. Leave out sales tax: the state averages are revenue per kWh for electricity service, so adding tax to your side would make your rate look higher than it is.
A supplier's quoted rate is only the energy part of the price. Comparing it with these averages would be comparing a part with a whole, and the tool is built to be given a whole bill. The bill calculator shows how to split one into its parts.
What is inside the state average
Each average is the revenue billed to commercial customers in the state for electricity service, divided by the kWh they used: energy, delivery, demand charges, customer charges, fuel adjustments and surcharges. It covers every commercial customer, from a corner shop to a hospital, so no single business should expect to match it. The rates by state page ranks every market, shows the trend since 2010, and where EIA reports it, how much of the price is delivery.
Common questions
- What is a good commercial electricity rate?
- There is no single good rate, because the all-in price depends on state, utility, rate schedule, size and load shape. Comparing yours with the average for businesses in your state is a starting point. A rate well above it is worth a closer look at the bill.
- Why is my rate higher than the average?
- Common reasons are a small account, a high share of demand charges for the kWh used, a rate schedule that no longer fits the load, or a supply contract signed when prices were higher. The average also blends in very large customers, who pay less per kWh.
- Does this tell me whether I can switch supplier?
- No. Whether you can choose a supplier depends on your state and utility. The rates by state page shows where that is possible.
Want to know why your rate is what it is? We separate what you can shop from what your utility sets, and tell you whether anything is worth doing.