2018’s Most & Least Energy-Expensive States
2:25 AMPosted by: Richie Bernardo
Get ready to crank up your air conditioner — and utility budget. July tends to be the hottest month of the year. So if you’re trying to beat the heat, this month’s higher-than-usual power bill could burn a hole through your wallet.
In the U.S., energy costs eat between 5 and 22 percent of families’ total after-tax income, with the poorest Americans, or 25 million households, paying the highest of that range. And lower energy prices don’t necessarily equate to savings. Where we live and how much energy we use are a big part of the equation. For instance, although electricity is relatively cheaper in Southern Louisiana, its scorching summer heat raises costs for residents compared with the temperate climate in more energy-expensive Northern California, where heating and cooling units stay idle most of the year.
To better understand the impact of energy on our finances relative to our location and consumption habits, WalletHub compared the total monthly energy bills in each of the 50 states and the District of Columbia. Our analysis uses a special formula that accounts for the following residential energy types: electricity, natural gas, motor fuel and home heating oil. Read on for our findings, tips and insight from a panel of experts, and a full description of our methodology.
Main Findings Embed on your website<iframe src="//d2e70e9yced57e.cloudfront.net/wallethub/embed/4833/geochart-energyexpensive.html" width="556" height="347" frameBorder="0" scrolling="no"></iframe> <div style="width:556px;font-size:12px;color:#888;">Source: <a href="https://ift.tt/2KQgn2o>Total Energy Costs by State
|
Overall Rank* |
State |
Total Energy Cost |
Monthly Electricity Cost (Rank) |
Monthly Natural-Gas Cost (Rank) |
Monthly Motor-Fuel Cost (Rank) |
Monthly Home Heating-Oil Cost (Rank) |
|---|---|---|---|---|---|---|
| 1 | Wyoming | $372 | $112(38) | $37(12) | $221(1) | $1(26) |
| 2 | Connecticut | $366 | $156(3) | $37(16) | $126(37) | $47(3) |
| 3 | Georgia | $349 | $154(4) | $39(11) | $157(15) | ~ $0(42) |
| 4 | Alabama | $341 | $173(2) | $18(41) | $150(17) | ~ $0(39) |
| 5 | Mississippi | $340 | $147(9) | $15(48) | $178(2) | ~ $0(51) |
| 6 | Alaska | $338 | $136(16) | $58(1) | $107(49) | $37(5) |
| 7 | Indiana | $337 | $129(25) | $33(22) | $175(4) | ~ $0(29) |
| 8 | West Virginia | $332 | $147(8) | $24(33) | $158(13) | $3(15) |
| 9 | Oklahoma | $331 | $132(19) | $30(25) | $168(6) | ~ $0(44) |
| 10 | North Dakota | $330 | $132(23) | $20(38) | $175(3) | $3(14) |
| 11 | Missouri | $326 | $135(17) | $34(20) | $157(14) | ~ $0(38) |
| 12 | Maine | $319 | $110(40) | $5(49) | $140(26) | $65(1) |
| 13 | Maryland | $318 | $149(7) | $34(19) | $129(35) | $8(12) |
| 14 | Massachusetts | $315 | $122(28) | $45(8) | $113(48) | $35(7) |
| 15 | Michigan | $313 | $114(36) | $52(4) | $147(21) | $1(25) |
| 16 | South Carolina | $313 | $176(1) | $16(46) | $121(43) | ~ $0(31) |
| 17 | Kansas | $312 | $132(22) | $40(10) | $141(25) | ~ $0(46) |
| 18 | New Hampshire | $311 | $130(24) | $16(47) | $116(45) | $49(2) |
| 19 | Delaware | $310 | $153(5) | $27(30) | $122(42) | $8(11) |
| 20 | Texas | $310 | $144(10) | $18(39) | $148(20) | ~ $0(50) |
| 21 | Minnesota | $309 | $108(41) | $37(15) | $162(8) | $2(17) |
| 22 | Utah | $308 | $94(48) | $53(2) | $161(9) | ~ $0(33) |
| 23 | Nevada | $307 | $117(32) | $32(23) | $158(12) | ~ $0(32) |
| 24 | Vermont | $307 | $116(34) | $16(44) | $129(34) | $47(4) |
| 25 | Kentucky | $306 | $134(18) | $22(35) | $149(18) | ~ $0(30) |
| 26 | South Dakota | $305 | $132(20) | $22(36) | $148(19) | $2(21) |
| 27 | Idaho | $304 | $114(35) | $28(28) | $160(11) | $2(20) |
| 28 | California | $303 | $100(47) | $32(24) | $171(5) | ~ $0(41) |
| 29 | Rhode Island | $302 | $117(33) | $48(6) | $101(50) | $37(6) |
| 30 | North Carolina | $301 | $141(12) | $16(45) | $142(24) | $3(16) |
| 31 | Montana | $298 | $107(42) | $28(29) | $161(10) | $1(24) |
| 32 | Ohio | $295 | $119(30) | $42(9) | $133(30) | $2(19) |
| 33 | Pennsylvania | $295 | $125(27) | $37(14) | $115(47) | $18(9) |
| 34 | New Jersey | $293 | $119(29) | $47(7) | $119(44) | $8(10) |
| 35 | Florida | $292 | $153(6) | $4(51) | $136(28) | ~ $0(45) |
| 36 | Tennessee | $292 | $144(11) | $18(42) | $130(33) | ~ $0(36) |
| 37 | Wisconsin | $292 | $111(39) | $37(17) | $142(23) | $2(18) |
| 38 | Arizona | $291 | $139(13) | $18(40) | $133(29) | ~ $0(48) |
| 39 | Virginia | $290 | $138(14) | $23(34) | $125(38) | $4(13) |
| 40 | Hawaii | $290 | $132(21) | $4(50) | $154(16) | ~ $0(49) |
| 41 | New York | $287 | $102(44) | $51(5) | $115(46) | $19(8) |
| 42 | Nebraska | $285 | $119(31) | $30(26) | $137(27) | ~ $0(35) |
| 43 | New Mexico | $284 | $87(51) | $29(27) | $168(7) | ~ $0(47) |
| 44 | Arkansas | $282 | $129(26) | $22(37) | $131(31) | ~ $0(37) |
| 45 | Louisiana | $280 | $138(15) | $17(43) | $125(40) | ~ $0(43) |
| 46 | Illinois | $279 | $100(46) | $53(3) | $126(36) | ~ $0(34) |
| 47 | Iowa | $277 | $113(37) | $33(21) | $131(32) | $1(28) |
| 48 | Oregon | $277 | $107(43) | $25(32) | $144(22) | $1(23) |
| 49 | Washington | $253 | $100(45) | $25(31) | $125(39) | $2(22) |
| 50 | Colorado | $252 | $92(50) | $36(18) | $123(41) | ~ $0(40) |
| 51 | District of Columbia | $203 | $93(49) | $37(13) | $72(51) | $1(27) |
*No. 1 = Most Energy-Expensive
According to the U.S. Energy Information Administration, the highest energy consumption of the year is recorded in July, followed by August, which translates to higher energy costs during this period. For advice on reducing our dependence on traditional energy sources — and thereby diminishing out-of-pocket costs — we asked a panel of energy and policy experts to share their thoughts on the following key questions:
- What are some good tips for saving money on energy bills?
- What makes energy costs higher in some states than in others?
- Are tax deductions and credits effective at incentivizing households to be more energy-efficient?
- Do you believe the government should continue to provide energy assistance to low-income households? If so, what’s the best way?
- Have recent regulatory changes made by the Trump administration begun to bring coal back?
Lisa Schweitzer Professor, Sol Price School of Public Policy, University of Southern California
Matthew A. Turner Professor, Department of Economics, Brown University
S. Ismat Shah Director Energy and Environmental Policy Program, Professor, Physics and Astronomy, Materials Science and Engineering, University of Delaware
What are some good tips for saving money on energy bills?
Fuel efficiency is the key. It would be great if families didn’t have to have a car and could rely on public transit, but in many parts of the US, that’s just not real option. Selecting a fuel-efficient car, such as a hybrid, can save hundreds of dollars a year.
What makes energy costs higher in some states than in others?
Transport and access make a fairly large difference in many states for gasoline costs, as do different refining standards.
Are tax deductions and credits effective at incentivizing households to be more energy efficient?
I think it does for economists and accountants. :) But many people do not itemize on their tax return, and if they don’t, they never see the savings they get. A good rule for thinking about consumer behavior is that people will make their choice by the unit price they see at the time they fill their tanks or turn on their air conditioners.
Do you believe the government should continue to provide energy assistance to low-income households? If so, what’s the best way?
Yes, I do, but it’s terribly hard to do this properly. Lifeline pricing programs require additional paperwork and many people are not aware of them. Utilities really have no incentive to push the programs terribly hard. Nonetheless, the weather on the east coast this week kills people—that’s the reality of heat waves. With these temps, we have to find ways to help seniors cool off.
Matthew A. Turner Professor, Department of Economics, Brown University
What makes energy costs higher in some states than in others?
Energy costs tend to be lower in states that rely on hydro-electric power. They tend to be higher in states that mandate the use of renewable energy. Renewable energy is cleaner and contributes less to global warming, but there is no getting around the fact that it still costs more than coal and gas.
Coal and gas fired power cost about the same and gas fired power puts a tiny fraction of the poisonous soot into the atmosphere as coal, and around half the CO2.
Are tax deductions and credits effective at incentivizing households to be more energy efficient?
Probably not very much. Ask yourself, do you know the incentive programs you are eligible for?’ The programs that are going to change behavior are going to be things that your know about and pay attention to.
For example, we can be pretty confident that an increase in the gas tax will lead people to buy more fuel efficient cars. You might not like it, but that’s why it will help reduce fuel use, and with it CO2 emissions, the various poisons in automobile and truck exhaust, and refinery waste.
Do you believe the government should continue to provide energy assistance to low-income households? If so, what’s the best way?
Probably not. We can probably help poor households more by putting fewer restrictions on the dollars we give them. This argues for consolidating energy subsidies into other income transfer programs.
Have recent regulatory changes made by the Trump administration bring coal back?
The main cause of the recent rapid decline in US coal consumption is the availability of cheap natural gas from fracking. There has been wholesale conversion of US power generation from coal to gas over the past several years. The decline in coal mining employment reflects both the decline in coal demand and the continuing automation of mining.
Mr. Trump’s policies do not address either of these issues, and so we should not expect them to have a lasting impact on the demand for coal or on employment in mining.
S. Ismat Shah Director Energy and Environmental Policy Program, Professor, Physics and Astronomy, Materials Science and Engineering, University of Delaware
What are some good tips for saving money on energy bills?
Heating and Cooling takes 45% of the energy. Water heater, lighting, refrigerator and electric ovens follow. To find the ways to save money on energy bills we have to follow the line of these utilities. Turn the temperature of the AC up to 74 F and add additional fan for the cooling. Heat the house to 65 and use warm clothing (hats and socks) in the house to stay warm. Water heater temperature can be adjusted down to 120F. For long term planning, put trees on the south side of the building.
What makes energy costs higher in some states than in others?
With the exception of Hawaii and Alaska, the most expensive states in terms or energy costs are the Northeastern states and the cheapest are South and Northwestern and the reason is the availability of natural resources. Northwest and South has hydroelectric and fossil fuels whereas these natural resources area absent in the Northeastern US. Add to this the REGGI tax of the more environmental states, the cost of the energy becomes even higher.
Are tax deductions and credits effective at incentivizing households to be more energy efficient?
Yes, of course. However, the question is always in the balance of up-front cost and lifetime benefits. A new refrigerator with high efficiency rating will save money in the long run but one has to put up $1000 up front. Education, in combination with incentives, is the best approach.
Do you believe the government should continue to provide energy assistance to low-income households? If so, what is the best way?
Absolutely. However, many energy saving strategies can be offered as a group package with the assistance. For example, lower income houses and be made more energy efficient with small repairs and changes. The Government can require these changes to occur as a part of the assistance. Likewise, the appliances should be of high efficiencies and the cost of these appliances can be subsidized.
Have recent regulatory changes made by the Trump administration bring coal back?
Coal is a thing of past. It does not make any economic sense to use coal at all. Gas, and then PV and wind, have levelized cost of electricity (LCOE) much lower than that of coal. Jobs offered through PV and wind industries are safer, higher paying and abundant.
MethodologyIn order to determine the most and least energy-expensive states, WalletHub compared the average monthly energy bills in each of the 50 states and the District of Columbia using the following equation:
(Average Monthly Consumption of Electricity * Average Retail Price of Electricity) + (Average Monthly Consumption of Natural Gas * Average Residential Price of Natural Gas) + (Average Monthly Consumption of Home Heating Oil * Average Residential Price of Home Heating Oil) + (Average Motor-Fuel Price * (Miles Traveled/Average Motor-Fuel Consumption/Number of Drivers in the State)) = Average Monthly Energy Bill in the State
Sources: Data used to create this ranking were collected from the U.S. Census Bureau, U.S. Energy Information Administration, Federal Highway Administration, American Automobile Association, National Highway Traffic Safety Administration and The Regents of the University of Michigan.
from Wallet HubWallet Hub
via Finance Xpress
0 comments