The New Year Rings in Higher Energy Rates
Rate Hikes Drive Average January 2026 Electric Bills to $200
January 2025 was punctuated by several bitterly cold Polar Vortex waves which spiked heating usage. In spite of the warm temperatures we're seeing this holiday season, weather researchers suspect that a similar pattern may emerge again this January. That could mean a return of teeth-chattering cold stretching deep into Texas, Georgia, and even Florida.
That kind of expensive cold is very much top of mind for consumers this year. One Associated Press holiday poll showed about two-thirds of adults said they experienced higher prices than usual for electricity and holiday gifts. Indeed, the National Energy Assistance Directors' Association (NEADA) recently announced that electric prices have risen 12% since last January, hitting a 10 year high. On average, families could pay $133 more for their heating this winter, especially in states that rely the most on electric heat.
But what makes the New Year even more stressful for many energy customers is that they will see their electric utility rates rise on January 1, 2026.
To help these consumers prepare for possible high utility bills this winter, researchers at UtilityRates.com undertook a survey of updated rate increases to estimate the average energy bills consumers may see in January, 2026.
Key Takeaways:
- Electric utilities in 22 states will be raising their delivery/distribution rates on or about January 1, 2026.
- Residential electricity consumers in these states will see monthly bills rise by an average of $7.46 or about 6.1%. Increases range from as low as 0.6% to as high as 15%.
- For most of the 27 electric utilities, their rate hikes are intended to raise annual revenue.
- An average January electric bill may reach $195.00 or more.
State-by-State Rate Changes for January 2026
| State | Estimated Average kWh Usage, Jan., 2025 | Average Bundled Price of Electricity, Sept., 2025 | Estimated January 2026 Bill Before Hike | Electric Utilities Raising Rates & Date | Reported % Rate Increase | Rate increase amount per month | Estimated Monthly Utility Bill After Rate Hike | Notes |
|---|---|---|---|---|---|---|---|---|
| Alabama | 1546.51 | $0.1643 | $254.09 | $254.09 | ||||
| Alaska | 697.85 | $0.2716 | $189.54 | $189.54 | ||||
| Arizona | 853.07 | $0.1527 | $130.26 | Salt River Project 11/2026 |
3.50% | $5.61 | $135.87 | Increase in annual revenue |
| Arkansas | 1404.54 | $0.1379 | $193.69 | Entergy Arkansas 1/2026 |
4.54% | $6.08 | $199.77 | Increase under Formula Rate Plan |
| Arkansas | Southwestern Electric Power Company (SWEPCO) | 27.20% | $30.46 | $224.15 | Increase in annual revenue | |||
| California | 550.93 | $0.3204 | $176.52 | Imperial Irrigation District (IID) 2/1/26 |
8.57% | $11.40 | $187.92 | 2025-2028 Rate Update |
| California | Pacific Gas and Electric (PG&E) 3/2026 |
N/A | $24.00 | Starting March 2026, PG&E will add a fixed rate Base Services Charge. | ||||
| California | Sacramento Municipal Utility District (SMUD) 1/1/26 |
3.00% | $4.35 | $180.87 | ||||
| California | San Diego Gas & Electric (SDG&E) 1/1/26 |
2.30% | $3.00 | $179.52 | The CPUC is working through several SDG&E rate cases and petitions. | |||
| California | Southern California Edison (SCE) 1/1/26 |
2.70% | $5.14 | $181.66 | General Rate Case Application (A.23-05-010) | |||
| Colorado | 758.00 | $0.1670 | $126.59 | $126.59 | ||||
| Connecticut | 885.24 | $0.3048 | $269.82 | $269.82 | ||||
| Delaware | 1210.33 | $0.1812 | $219.31 | $219.31 | ||||
| District of Columbia | 842.09 | $0.2367 | $199.32 | $199.32 | ||||
| Florida | 1052.17 | $0.1576 | $165.82 | Florida Public Utilities Company 1/1/26 |
1.86% | $2.50 | $168.32 | |
| Florida | Duke Energy 1/1/26 |
N/A | $7.54 | $173.36 | Jan. 1, 2026 - Feb 28, 2026 ONLY. In March, 2026, Residential customers may expect a 22% drop (about $44) for a 1,000 kWh bill. | |||
| Florida | TECO 1/1/26 |
5.65% | $5.51 | $171.33 | 2026 Subsequent Year Adjustment (SYA) | |||
| Georgia | 1410.24 | $0.1530 | $215.77 | Georgia Power | $215.77 | GA Power may file storm recovery cases in 2026. | ||
| Hawaii | 535.10 | $0.3954 | $211.58 | $211.58 | ||||
| Idaho | 1273.52 | $0.1250 | $159.19 | Idaho Power 1/1/26 |
9.74% | $12.13 | $171.32 | Increase in annual revenue. Before the Idaho Public Utilities Commission |
| Illinois | 834.54 | $0.1905 | $158.98 | Ameren Illinois 1/2026 |
$158.98 | The FERC transmission service charge current rate is 2.264 cents per kWh. An increase is expected to go into effect in January, 2026. | ||
| Indiana | 1265.65 | $0.1733 | $219.34 | $219.34 | ||||
| Iowa | 1100.84 | $0.1479 | $162.81 | $162.81 | ||||
| Kansas | 1030.80 | $0.1520 | $156.68 | $156.68 | ||||
| Kentucky | 1572.05 | $0.1356 | $213.17 | Kentucky Utilities 1/2026 |
13.60% | $9.00 | $222.17 | Increase in annual revenue |
| Kentucky | Louisville Gas and Electric Company (LG&E) 1/1/26 |
8.50% | $5.04 | $218.21 | ||||
| Louisiana | 1400.92 | $0.1236 | $173.15 | $173.15 | ||||
| Maine | 612.84 | $0.2798 | $171.47 | Central Maine Power Co | $171.47 | Proposed rate hike dismissed | ||
| Maryland | 1380.08 | $0.2105 | $290.51 | $290.51 | ||||
| Massachusetts | 694.37 | $0.3041 | $211.16 | $211.16 | ||||
| Michigan | 709.24 | $0.2120 | $150.36 | $150.36 | ||||
| Minnesota | 915.50 | $0.1710 | $156.55 | Rochester Public Utilities 1/1/26 |
4% | $3.85 | $160.40 | To fund switch to 100% renewables |
| Mississippi | 1416.43 | $0.1397 | $197.88 | $197.88 | ||||
| Missouri | 1403.22 | $0.1584 | $222.27 | The Empire District Electric Company 1/2/26 |
6.62% | $33.00 | $255.27 | Amended increase in annual revenue filed 3/2025; MO PSC deadline 01/02/2026; |
| Montana | 1150.71 | $0.1464 | $168.46 | $168.46 | ||||
| Nebraska | 1287.31 | $0.1385 | $178.29 | Lincoln Electric System 1/1/26 |
3% | $3.22 | $181.51 | Rising power cost adjustment |
| Nevada | 738.54 | $0.1195 | $88.26 | $88.26 | ||||
| New Hampshire | 808.84 | $0.2782 | $225.02 | $225.02 | ||||
| New Jersey | 730.01 | $0.2339 | $170.75 | Atlantic City Electric 12/1/25 |
3.50% | $6.00 | $176.75 | Increase in annual revenue |
| New Jersey | Rockland Electric (RECO) Early 2026 |
7.62% | $17.00 | $187.75 | Increase in annual revenue | |||
| New Mexico | 745.24 | $0.1652 | $123.11 | $123.11 | ||||
| New York | 679.22 | $0.2723 | $184.95 | Consolidated Edison 1/1/26 |
13.40% | $26.60 | $211.55 | |
| New York | Orange & Rockland (O&R) 1/1/26 |
3.30% | $11.09 | $196.04 | 3 year revenue increase | |||
| North Carolina | 1491.00 | $0.1512 | $225.44 | Duke Energy 1/1/26 |
3% | $5.00 | $230.44 | Duke Energy Carolinas increases 3.2%. Duke Energy Progress rises by 3.7%. The average is about $5.00 more. |
| North Dakota | 1614.80 | $0.1366 | $220.58 | $220.58 | ||||
| Ohio | 1156.35 | $0.1761 | $203.63 | Ohio Edison (FirstEnergy) 2026 |
-1.42% | -$2.43 | $201.20 | Customers get a $30 bill credit from December 2025 through February 2026. FirstEnergy HB 6 fallout, Nov. 19, 2025. |
| Ohio | Toledo Edison (FirstEnergy) 2026 |
-5.24% | -$9.09 | $194.54 | Customers get a $30 bill credit from December 2025 through February 2026. FirstEnergy HB 6 fallout, Nov. 19, 2025. | |||
| Ohio | The Illuminating Company (FirstEnergy) 2026 |
2.73% | $4.74 | $208.37 | Customers get a $30 bill credit from December 2025 through February 2026. FirstEnergy HB 6 fallout, Nov. 19, 2025. PUCO granted the Illuminating Co. an increase in revenue for reliability upgrades. | |||
| Ohio | AEP Ohio 2026 |
2.14% | $3.95 | $207.58 | Increase in annual revenue. PUCO has paused this request. | |||
| Ohio | Dayton Power & Light (AES Ohio) 1/1/26 |
9.00% | $15.28 | $218.91 | Increase in annual revenue | |||
| Oklahoma | 1360.01 | $0.1479 | $201.15 | $201.15 | ||||
| Oregon | 1205.13 | $0.1596 | $192.34 | Portland General Electric 4/1/26 |
2.80% | $4.49 | $196.83 | Before the OPUC |
| Pennsylvania | 1150.70 | $0.2046 | $235.43 | $235.43 | PPL's requested $12.39 (7%) hike for its Distribution System Plan was paused by the PA PUC until 7-1-26. | |||
| Rhode Island | 655.07 | $0.2830 | $185.38 | $185.38 | ||||
| South Carolina | 1460.03 | $0.1534 | $223.97 | Duke Energy Carolinas 3/1/26 |
0.60% | $0.84 | $224.81 | Increase in annual revenue |
| South Dakota | 1351.18 | $0.1476 | $199.43 | $199.43 | ||||
| Tennessee | 1516.19 | $0.1329 | $201.50 | $201.50 | ||||
| Texas | 1201.79 | $0.1584 | $190.36 | CenterPoint Energy 1/1/26 |
N/A | $1.00 | $191.36 | Houston Storm damage; consumers will pay $1 more on Jan. 1, 2026, increasing to $4 more per month in 2028. |
| Texas | El Paso Electric Early 2026 |
23.23% | $22.39 | $212.75 | Increase in annual revenue | |||
| Texas | Oncor Electric Delivery Early 2026 |
12.30% | $7.90 | $198.26 | Increase in annual revenue | |||
| Utah | 797.99 | $0.1412 | $112.68 | $112.68 | ||||
| Vermont | 766.33 | $0.2392 | $183.31 | $183.31 | ||||
| Virginia | 1619.57 | $0.1662 | $269.17 | Dominion Energy 1/1/26 |
N/A | $11.24 | $280.41 | Revised. Dominion Energy originally sought a $21/month increase from new data center demands. |
| Washington | 1357.77 | $0.1379 | $187.24 | Puget Sound Energy 1/1/26 |
9.58% | $11.20 | $198.44 | Second half of approved rate increase. |
| West Virginia | 1743.45 | $0.1614 | $281.39 | $281.39 | ||||
| Wisconsin | 785.44 | $0.1873 | $147.11 | Alliant Energy 1/1/26 |
N/A | $9.57 | $156.68 | |
| Wisconsin | Madison Gas and Electric (MGE) 1/1/26 |
N/A | $0.13 | $147.24 | ||||
| Wisconsin | WE Energies 1/1/26 |
N/A | $9.73 | $156.84 | Approved Nov., 2024 | |||
| Wisconsin | Wisconsin Public Service (WPS) 1/1/26 |
5.20% | $6.00 | $153.11 | ||||
| Wisconsin | Xcel Energy 1/1/26 |
N/A | $13.47 | $160.58 | ||||
| Wyoming | 1244.24 | $0.1500 | $186.64 | $186.64 |
Why the Price of Power is Rising
These increases play out differently across states.Texas electricity rates in deregulated territories rates rise sharply as utilities recover infrastructure costs while serving growing data center loads. Ohio electricity rates vary widely by utility company, with some customers seeing decreases and others facing increases up to 9%. Virginia electricity rates increase to fund the infrastructure needed for massive data center expansion, while Florida electricity rates combine storm recovery surcharges with ongoing infrastructure maintenance costs.
While most of these rate hikes are designed to increase annual revenue, state utility commissions oversee them as a way for the utility to fairly recover costs for improvements and upgrades. While these enhance and safeguard the power delivery and distribution infrastructure, they don't come cheaply. Indeed, EIA data shows that between 2024 and 2026, costs for power transmission and distribution are on track to rise by 3.4% and 2.7% respectively.
Adding to the problem is the rising price to generate electricity.
While vanishing federal funding for renewable power projects and rising natural gas commodity prices are partly to blame, rising demand is also increasing costs. This is particularly notable in the west south central region of the nation (Texas, Oklahoma, Louisiana and Arkansas) as a result of rising population and large load computer data centers.
According to the EIA's Short Term Energy Outlook (November, 2026), the load-weighted average of the 11 regional wholesale prices it tracks may reach $51/MWh in 2026. That's an increase of 8.5% more than 2025. So, while energy prices are already up sharply, consumers may see rates go up even further later into the coming year.
Methodology
By comparing EIA usage data and pricing information with NOAA forecasts, we assumed that electricity usage in January 2026 would be similar to January 2025. Using the most recent EIA date, we estimated an average January 2026 bill for each state. Using pricing data from the Center for American Progress October report, as well as updated rate case information, we formulated how these rate increases affected our estimated January utility bills.
Sources
NOAA, Climate Prediction Center
https://www.cpc.ncep.noaa.gov/products/predictions/long_range/seasonal.php
Associated Press-NORC Center for Public Affairs Research poll
https://apnews.com/article/poll-economy-inflation-groceries-costs-trump-affordability-d27635d279b27e5e2c19700c006ebb1d
National Energy Assistance Directors' Association (NEADA)
https://neada.org/wp-content/uploads/2025/12/winterheatingdec25PR.pdf
Center for American Progress: Residents of 49 States and Washington, D.C., Face Increasing Electric and Natural Gas Bills
https://www.americanprogress.org/article/residents-of-49-states-and-washington-d-c-face-increasing-electric-and-natural-gas-bills/
EIA, Short Term Energy Outlook (November 2026)
https://www.eia.gov/outlooks/steo/archives/Nov25.pdf
EIA Annual Energy Outlook
https://www.eia.gov/outlooks/aeo/
EIA Electric Power Monthly
https://www.eia.gov/electricity/monthly/