Tennessee Electricity Prices

Tennessee's residential electricity rate stood at 13.42¢/kWh in August 2026, the 46th most expensive among the 50 states and DC. This rate is 4.74¢/kWh below the US average of 18.16¢/kWh, representing 26.1% lower costs than the national figure. Among bordering states, Tennessee undercuts Kentucky at 13.80¢/kWh and all others by wider margins; Virginia, the most expensive neighbor, costs 17.64¢/kWh. Commercial and industrial rates followed the residential pattern, at 13.13¢/kWh and 6.92¢/kWh respectively.

Over the past five years since August 2021, Tennessee's residential rate has climbed 20.5%, from 11.14¢/kWh. The longer trend is steeper: since August 2006, the rate has risen 70.3%, and since records began in January 2001, it has grown 119.6% from 6.11¢/kWh. The current rate remains below the state's record high of 15.08¢/kWh in March 2026 but reflects the sustained upward pressure on electricity costs over two decades.

The average Tennessee household paid $163 monthly for 1,196 kWh in August 2026, compared to the national average bill of $158 for 876 kWh. Despite the below-average rate, Tennessee's higher usage pushed the monthly bill slightly above the national figure, demonstrating how consumption patterns can offset lower per-unit costs.