Electricity Cost in Tennessee: 2024 Electric Rates | EnergySage (2024)

FAQs

Electricity Cost in Tennessee: 2024 Electric Rates | EnergySage? ›

Monthly electric bills are a product of how much electricity you use per month and your electric rate. In Tennessee, the average monthly electric bill for residential customers is $172/month, which is calculated by multiplying the average monthly consumption by the average electric rate: 1,397 kWh * 12 ¢/kWh.

Monthly electric bills are a product of how much electricity you use per month and your electric rate. In Tennessee, the average monthly electric bill for residential customers is $172/month, which is calculated by multiplying the average monthly consumption by the average electric rate: 1,397 kWh * 12 ¢/kWh.

Have rates been adjusted? Due to inflation and an increase in costs associated with electric infrastructure, the Tennessee Valley Authority (TVA) and MTE adjusted the energy-charge portion of rates upward on Oct. 1, 2023. Prior to this, MTE hadn't had a rate increase to benefit our own revenues in 15 years.

Last updated July 2024

The average Tennessee residential electricity rate is 12.76 ¢/kWh (24% lower than the national average). The average Tennessee commercial electricity rate is 12.09 ¢/kWh (4% lower than the national average).

Hawaii has the highest electricity costs in the US, with an average rate of 44.28 cents/kWh. Most of the states with expensive electricity are located in the northeast - with the exception of Alaska, California and Hawaii.

Utility costs in Tennessee are quite reasonable, with an average electric bill of around $140 per month, while the average monthly costs for gas and water typically around are $101 and $36, respectively.

The national average increased 4.8 percent compared with the previous year. In April 2024, Utah paid the lowest average residential electricity rates in the country – 11.07 cents per kWh. Hawaii paid the highest electricity rate at 45.19 cents per kWh.

Chhattisgarh - Chhattisgarh has the lowest commercial electricity tariffs in India. The fixed charge is Rs. 85/kW/month and the energy charge is Rs. 4.28/kWh.

PREVIOUS Residential Bundled Non-CARE Average Rate as of March 1, 2024: 46.76 cents per kilowatt-hour. NEW Residential Bundled Non-CARE Average Rate as of April 1, 2024: 47.38 cents per kilowatt-hour. Customers enrolled in the CARE program receive a discount of approximately 35% on their electric bill.

Where does most of Tennessee electricity come from? ›

The majority of Tennessee's electricity is produced by coal. Tennessee is one of the top hydroelectric-generating states east of the Rocky Mountains, producing 12 percent of its electricity from hydroelectric power. Tennessee generates over 30 percent of its electricity from nuclear power.

Nashville is on the higher end of the cost of living index in Tennessee. One of the reasons for this is the abnormally high housing prices. Nashville has been seeing a surge in home purchases since the housing market began to recover at the beginning of the decade.

It was the first increase since before the COVID-19 pandemic. For TVA's 10 million customers, the increase meant about $3.50 more on monthly residential electric bills.

As per Section 3 of the Tamil Nadu Tax on Consumption or Sale of Electricity (Amended) Act, 2007, a tax at a rate of 5% of the consumption charges is leviable for the electricity sold by the licensee.

Electric rates in Nashville, TN

The average residential electricity rate in Nashville, TN is 13 ¢/kWh, which is 3% higher than the average electricity rate in Tennessee of 12.33 ¢/kWh. The average residential electricity rate in Nashville, TN is 27% lower than the national average rate of 17 ¢/kWh.

TVA GRID ACCESS - TVA's Grid Access Charge (GAC) is necessary to cover the fixed cost associated with maintaining the electric grid. The rate is based on your average usage for the past 12 months.

How much are average utilities for a house? Across the US, homeowners should set aside around $400 a month for their home's utilities.

Key takeaways

The most expensive utility is cell phone service, at $1,844 per year, followed by electricity at $1,644 per year. Typical utility costs include electricity, gas and/or heating oil, water and/or sewer, cable, cell phone, internet and streaming services, and sometimes trash and recycling.

The average electric bill in the US is $149 per month based on the average residential electricity price of 16.9 cents per kWh in September 2023 (the latest available data) and the average household consumption of 881 kWh per month based on data from the US Energy Information Administration.