Does California Have the Highest Electricity Rates in the U.S.? Where It Ranks in 2026

California has the second-highest residential electricity prices in the U.S., behind only Hawaii. In June 2026, EIA put California's average at 34.74 cents per kWh, against 52.72 cents in Hawaii and 18.34 cents nationally. For the first half of 2026, California averaged 33.17 cents and again ranked second. Among the 48 contiguous states, it is the most expensive.

These are the U.S. Energy Information Administration's state averages across every utility in the state. Inside California the price depends heavily on which utility serves you; the rate tracker for PG&E, SCE, SDG&E and SMUD has each one's current average and the date it last changed.

The 10 states with the highest residential electricity prices

A single month can move the order, so it helps to look at longer periods. For January through June 2026, EIA's year-to-date table puts Hawaii at 45.95 cents, California at 33.17 cents and Massachusetts at 30.06 cents, the same top three. For all of 2024, EIA's annual data again has California second, at 31.97 cents, behind Hawaii's 42.86 cents and ahead of Massachusetts at 29.35 cents and Connecticut at 28.75 cents.

One detail cuts the other way. From June 2025 to June 2026, California's average rose about 3.4%, from 33.59 to 34.74 cents, while the U.S. average rose about 5.0%, from 17.47 to 18.34 cents. California is still far above the rest of the country, but it was not the fastest-rising state over that year.

Not just homes: California businesses pay more too

EIA's June 2026 figures show the same gap in every sector. California commercial customers averaged 27.33 cents per kWh against 14.19 cents nationally, and industrial customers 20.74 cents against 9.17 cents. Across all sectors, California averaged 28.50 cents and the U.S. 14.48 cents.

Why California's electricity rates are so high

The CPUC Public Advocates Office, which represents utility customers before the commission, names three main statewide drivers in its July 2026 report: wildfire mitigation and liability costs, transmission and distribution investment, and rooftop solar incentives under net energy metering. Its ten-year figures, January 2016 to June 2026, show residential average rates up 69% at PG&E, 101% at SCE and 97% at SDG&E, and its chart shows rates outpacing inflation since 2014.

The detail, utility by utility, is on the pages that track each rate change: the SCE rate history since 2024, the SDG&E rate history and whether PG&E rates went up. For the causes as they show up on a bill, see why California electricity is so expensive.

Inside California: which utilities cost the most

California's state average blends very different utilities. The Public Advocates Office reports June 2026 residential averages of 45.5 cents per kWh at SDG&E, 34.4 cents at SCE and 33.7 cents at PG&E. SDG&E's figure is higher than any other state's June average except Hawaii's, though the office and EIA measure slightly differently. In SMUD's own comparison of a 750 kWh month as of June 1, 2026, the publicly owned utilities come out cheaper: SMUD at $149, LADWP at $217, SCE at $283, PG&E at $290 and SDG&E at $322. The PG&E, SCE and SDG&E comparison and the LADWP rate guide have the plan-level prices.

Highest rates, but not the highest bills

California homes use little electricity: 503 kWh a month on average in 2024, second-lowest of the 50 states and D.C. So despite the second-highest price, California's average monthly bill, $160.86, ranked eighth in EIA's 2024 data, behind Hawaii, Connecticut, Alabama, Massachusetts and Maryland among others. The U.S. average bill was $142.26. More on what that means for a household in the average California utility bill guide.

What high rates mean for solar and batteries

A high price per kWh raises the value of every kWh a home does not have to buy, which is why solar gets so much attention in California. But the export side is set separately: under the CPUC's net billing tariff, power sent to the grid is usually credited at less than the retail price. The NEM 2.0 vs. NEM 3.0 explainer covers how exports are credited now.