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It’s true that surging inflation has hit many Americans in an already tight pocketbook. Along with the rising cost of food and housing nationwide, many households are struggling to pay utility bills. Whether you’re a homeowner or renter stretched thin by rising energy costs, it’s important to get a good handle on how much is budgeted each month to cover your various utility bills.
By now you should have a rough estimate of what to expect each month for your utility bills. However, with rising inflation, many consumers may get surprise prices that are higher than normal. Anticipating these occasional increases can give consumers a more predictable estimation for their monthly budget. This proactive planning can lead to financial success and peace of mind.
Takeaways
Key Takeaways
- Alaska has the highest monthly utility bills in the nation.
- Utah has low energy prices, low property taxes and the lowest monthly utilities in the U.S.
- Americans pay an average of $429.33 per month for their utility bills.
- Our research into the best internet providers revealed Arizona, Kansas and Louisiana are tied at $20 with some of the lowest internet bills within the U.S while Iowa has the highest at $50 per month.
Most Common Utilities
Utilities are those basic needs you and your family use the most every day to keep your household functioning and content. Common utilities include electric, natural gas, water, sewer, trash, cable TV, internet, phone, security and recycling.
Rising inflation has had a significant impact on the increasing cost of utilities since 2020. In 2022, consumers on average paid 14.3% more for electricity than in 2021, which is more than double the overall 6.5% rise in prices, according to Consumer Price Increase data released by the U.S. Bureau of Labor Statistics. The data showed that electricity prices rose 1% month-to-month, while the overall CPI dropped by 0.1%.
Americans spend a monthly average of $429.33 per month on utilities, according to Forbes figures. That comes out to Americans spending about $5,151.96 per year on utilities, or 10% of their yearly income, according to the Consumer Expenditure Survey by the U.S. Bureau of Labor Statistics.
Monthly Utility Costs Breakdown by State
Your monthly utility costs will vary depending on where you live, the size of your home, age of appliances, climate and energy costs in your state. It can also include your thermostat setting preference and what kind of insulation your home has. Population density is also a factor since utilities will cost more where there is higher demand.
Forbes Home found that the states of Hawaii and Alaska have the highest monthly utility bills while Utah and New Mexico have the lowest. Nationwide Americans spend an average of $429.33 per month on utilities. Here are a few other findings:
- Hawaii has the highest monthly energy bill at $177.78 and Utah has the lowest at $80.87.
- California has the highest monthly water bill at $77 and Wisconsin and Vermont tied for the lowest at $18.
- Iowa has the highest monthly internet bill at $50 and the states of Arizona, Kansas, Louisiana Missouri, Nebraska, Nevada, Oklahoma, Rhode Island and Virginia tied for the lowest at $20.
- Hawaii has the highest natural gas bill at $122 and Oregon has the lowest at $32.
- All states have the same cost for their monthly phone bill: $114.
- Maryland has the highest streaming bill at $52.25 while New Mexico has the least at $39.50.
- Twelve states spend less than $400 on their monthly utilities: Colorado, Idaho, Louisiana, Minnesota, Montana, Nebraska, Nevada, New Mexico, North Dakota, Utah, Wisconsin and Wyoming.
STATE | ENERGY BILL | MONTHLY WATER BILL | INTERNET | NATURAL GAS | PHONE BILL | STREAMING | TOTAL MONTHLY COST |
---|---|---|---|---|---|---|---|
Alabama | $147.75 | $30 | $35 | $81 | $114 | $44.75 | $452.50 |
Alaska | $133.89 | $68 | $50 | $164 | $114 | $39.75 | $569.64 |
Arizona | $ 131.35 | $64 | $20 | $82 | $114 | $49.50 | $460.85 |
Arkansas | $123.69 | $26 | $30 | $65 | $114 | $45.50 | $404.19 |
California | $123.67 | $77 | $40 | $34 | $114 | $49.25 | $437.92 |
Colorado | $91.96 | $39 | $30 | $47 | $114 | $50.00 | $371.96 |
Connecticut | $156.21 | $69 | $38 | $107 | $114 | $48.50 | $532.71 |
Delaware | $118.85 | $46 | $30 | $80 | $114 | $47.00 | $435.85 |
Florida | $130.40 | $33 | $30 | $105 | $114 | $46.00 | $458.40 |
Georgia | $134.11 | $28 | $30 | $118 | $114 | $50.75 | $474.86 |
Hawaii | $177.78 | $64 | $45 | $122 | $114 | $40.75 | $563.53 |
Idaho | $97.62 | $38 | $30 | $40 | $114 | $48.25 | $367.87 |
Illinois | $95.86 | $26 | $30 | $97 | $114 | $49.50 | $412.36 |
Indiana | $126.51 | $30 | $30 | $122 | $114 | $47.00 | $469.51 |
Iowa | $109.63 | $32 | $50 | $73 | $114 | $45.25 | $423.88 |
Kansas | $115.53 | $27 | $20 | $106 | $114 | $48.25 | $430.78 |
Kentucky | $124.67 | $49 | $35 | $94 | $114 | $48.00 | $464.67 |
Louisiana | $131.37 | $21 | $20 | $55 | $114 | $48.25 | $389.62 |
Maine | $99.44 | $24 | $45 | $104 | $114 | $46.50 | $432.94 |
Maryland | $127.62 | $46 | $30 | $80 | $114 | $52.25 | $449.87 |
Massachusetts | $136.37 | $34 | $30 | $77 | $114 | $49.00 | $440.37 |
Michigan | $117.57 | $29 | $30 | $74 | $114 | $48.50 | $413.07 |
Minnesota | $104.76 | $28 | $30 | $55 | $114 | $49.00 | $380.76 |
Mississippi | $135.31 | $23 | $30 | $63 | $114 | $47.00 | $412.31 |
Missouri | $118.55 | $39 | $20 | $108 | $114 | $47.50 | $447.05 |
Montana | $97.84 | $38 | $45 | $37 | $114 | $47.50 | $379.34 |
Nebraska | $108.09 | $23 | $20 | $68 | $114 | $46.25 | $379.34 |
Nevada | $110.17 | $26 | $20 | $56 | $114 | $50.50 | $376.67 |
New Hampshire | $125.24 | $27 | $30 | $90 | $114 | $48.00 | $434.24 |
New Jersey | $112.39 | $72 | $40 | $66 | $114 | $49.50 | $453.89 |
New Mexico | $87.31 | $32 | $30 | $60 | $114 | $39.50 | $362.81 |
New York | $116.70 | $30 | $30 | $96 | $114 | $47.00 | $433.70 |
North Carolina | $120.68 | $20 | $35 | $63 | $114 | $47.75 | $400.43 |
North Dakota | $112.93 | $31 | $30 | $62 | $114 | $47.00 | $396.93 |
Ohio | $112.21 | $27 | $25 | $148 | $114 | $46.50 | $472.71 |
Oklahoma | $119.69 | $35 | $20 | $71 | $114 | $48.00 | $407.69 |
Oregon | $106.49 | $76 | $30 | $32 | $114 | $49.00 | $407.49 |
Pennsylvania | $117.11 | $31 | $30 | $103 | $114 | $48.00 | $443.11 |
Rhode Island | $130.40 | $32 | $20 | $95 | $114 | $48.25 | $439.65 |
South Carolina | $138.65 | $33 | $25 | $96 | $114 | $46.75 | $453.40 |
South Dakota | $124.50 | $26 | $50 | $50 | $114 | $44.25 | $408.75 |
Tennessee | $130.98 | $43 | $30 | $66 | $114 | $47.50 | $431.48 |
Texas | $132.40 | $37 | $30 | $61 | $114 | $49.50 | $423.90 |
Utah | $80.87 | $38 | $30 | $35 | $114 | $47.75 | $345.62 |
Vermont | $109.24 | $18 | $30 | $89 | $114 | $45.50 | $405.74 |
Virginia | $130.92 | $36 | $20 | $80 | $114 | $49.25 | $430.17 |
Washington | $99.45 | $75 | $30 | $33 | $114 | $49.75 | $401.20 |
West Virginia | $129.61 | $91 | $38 | $69 | $114 | $44.50 | $486.11 |
Wisconsin | $100.18 | $18 | $40 | $77 | $114 | $46.50 | $395.68 |
Wyoming | $96.82 | $53 | $45 | $43 | $114 | $47.25 | $399.07 |
States With the Most Expensive Utilities
When looking for a home, the cost of utilities is probably not something you’re thinking about. But where you live does make a difference when it comes to the cost of your monthly utility bills.
Forbes Home found that Alaska leads all other states for paying the highest monthly utility bill at $569.64. Right behind that state is Hawaii, Connecticut, West Virginia and Georgia, which all share the highest monthly utility costs compared to other states in 2022. Residents pay about $177 on their energy bills in Hawaii, while the monthly bill for natural gas in Alaska came out to $164. Both figures are significantly higher than in any other state.
Living in paradise comes at a price even when that state is not as densely populated as other locales. The cost of living in the tropical state of Hawaii is 86% higher than the national average and it relies on imported petroleum for 60% of its electricity generation. California is another state known not only for its beautiful scenery and beaches but soaring home prices. The state’s utilities cost-of-living index is about 22% higher than the rest of the U.S.
Other factors that can impact electricity prices in your state include fuel prices, costs to maintain power plants and the electricity grid, pricing regulations in your state and climate. If you happen to be living in a remote area, the costs of building infrastructure to support utilities can also drive up the cost.
STATE | ENERGY BILL | MONTHLY WATER BILL | INTERNET | NATURAL GAS | PHONE BILL | STREAMING | TOTAL MONTHLY COST |
---|---|---|---|---|---|---|---|
Alaska | $133.89 | $68 | $50 | $164 | $114 | $39.75 | $569.64 |
Hawaii | $177.78 | $64 | $45 | $122 | $114 | $40.75 | $563.53 |
Connecticut | $156.21 | $69 | $38 | $107 | $114 | $48.50 | $532.71 |
West Virginia | $129.61 | $91 | $38 | $69 | $114 | $44.50 | $486.11 |
Georgia | $134.11 | $28 | $30 | $118 | $114 | $50.75 | $474.86 |
Fuel Costs and Utility Impact
Weather related disruptions, energy supply chain constraints, labor shortages impacting production and energy inflation all impact the cost of natural gas.
Natural gas fuels power plants that create electricity for customers. Its pricing can go up or down depending upon supply and demand in the gas markets worldwide. Natural gas makes up about a quarter of the world’s electricity generation and prices fluctuate depending on global economic circumstances.
According to the Environmental Defense Fund (EDF), after the U.S., Russia is the second largest producer of natural gas. The Russian war with Ukraine caused natural gas and gasoline prices to reach record highs. The war caused oil prices to skyrocket from around $76 per barrel to over $110 per barrel in March 2022.
The subsequent U.S. ban on Russian oil, which makes up 10% of the world’s oil supply, caused domestic energy prices to surge, according to the EDF. As the U.S. continues to ship large amounts of natural gas to Europe to make up for the loss of imports from Russia, utility bills may continue to be high for much of America.
Natural gas prices impact electricity prices and are the largest source of electricity generation, making up nearly 40% of U.S. power capacity, according to the U.S. Energy Information Administration. Increasing demand from other countries and severe winter climate has caused natural gas wholesale prices to surge.
Colder weather means more energy is being consumed to keep homes warm. The average household is expected to spend 28% more in 2023, compared to last year to heat a home with gas, according to the US Energy Information Administration. The higher demand for heating has an impact on supply due to winter storm disruptions, such as power outages.
Many Americans have also felt the sting of increases at the pump, particularly California and Hawaii, the latter of which has the highest gas prices in the nation, according to AAA.
While gas prices have come down since the highs in August 2022, the price of natural gas used at power plants to generate electricity or heat homes has not gone down. Electric bills are expected to continue to rise since natural gas is still in short supply in the U.S.
States With the Least Expensive Utilities
Believe it or not there are some states that have low or lower monthly utility bills. The state with the lowest monthly utility bill is Utah. The states that follow include New Mexico, Idaho, Colorado and Nevada.
STATE | ENERGY BILL | MONTHLY WATER BILL | INTERNET | NATURAL GAS | PHONE BILL | STREAMING | TOTAL MONTHLY COST |
---|---|---|---|---|---|---|---|
Utah | $80.87 | $38 | $30 | $35 | $114 | $47.75 | $345.62 |
New Mexico | $87.31 | $32 | $30 | $60 | $114 | $39.50 | $362.81 |
Idaho | $97.62 | $38 | $30 | $40 | $114 | $48.25 | $367.87 |
Colorado | $91.96 | $39 | $30 | $47 | $114 | $50.00 | $371.96 |
Nevada | $110.17 | $26 | $20 | $56 | $114 | $50.50 | $376.67 |
Stats that stand out among this group of states:
- Utah has the lowest energy bill at $80.87 and natural gas bill at $35.
- Nevada has the lowest monthly water bill at $26 and lowest cost for the internet at $20.
- New Mexico has the lowest streaming bill at $39.50.
Utility Trends
Alaska has the highest total monthly utility bill of all states at $569.64 and Utah has the lowest at $345.62. The average utility bill per month nationwide is $429.33. The year 2022 had a number of factors that impacted utility bills, ranging from extreme weather conditions to the war in Ukraine to inflation.
In 2022, consumers shelled out 14.3% more for electricity on average, than the previous year, more than double the overall 6.5% rise in prices, according to Consumer Price Increase data by the U.S. Bureau of Labor Statistics.
STATE | ENERGY BILL | MONTHLY WATER BILL | INTERNET | NATURAL GAS | PHONE BILL | STREAMING | TOTAL MONTHLY COST | |
---|---|---|---|---|---|---|---|---|
Most expensive | Alaska | $133.89 | $68 | $50 | $164 | $114 | $39.75 | $569.64 |
Least expensive | Utah | $80.87 | $38 | $30 | $35 | $114 | $47.75 | $345.62 |
Ways to Save on Monthly Bills
High energy bills can really take a chunk out of your monthly income. Short of moving to Utah, which has lowest utility bills in the nation, there are things consumers can do to lower their utility bills. Here are several to practice:
- Invest in installing rooftop solar panels
- Use ceiling fans in every room and keep shades/blinds closed during daylight hours
- Buy Energy Star appliances
- Turn off lights and unplug devices not in use
- Invest in a smart meter to measure energy use
- Use LED lighting
- Water lawn and plants in early morning or evening
- Have a home energy auditor check potential energy loss in your household
- Compare providers to get the best pricing
- Swap out air filters every three months
- Get a smart thermostat
- Seal air leaks and insulate your home
- Fix water leaks
- Do a maintenance check on your HVAC system every year
- Run laundry and dishwasher when full
Bottom Line
Numerous factors affect high utility bills that can eat up your monthly income. But whether or not you live in a state with higher or lower monthly utility bills, it’s a good practice to actively find ways to lower your utility bills. Practicing a variety of energy savings measures can considerably cut monthly utility costs.
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Sources
- U.S. Energy Information Administration
- World Population Review
- U.S. Bureau of Labor Statistics
- Energy.gov
- Environmental Defense Fund
- AAA
- GEP Worldwide
- PR Newswire
- UtilityDive.com
- EntergyNewsroom.com