EnergySavings · FAQ

Electricity and heating costs: questions people ask

Data as of: EIA-861 annual 2024 (released 2025) · EIA monthly state prices February 2026 · EIA weekly heating-fuel survey Mar 30, 2026 · retail-choice registry reviewed Jun 2026 · URDB tariffs pulled Jun 2026. Page generated 2026-06-12.

The short version: your distribution utility is fixed by address and cannot be chosen anywhere in the US. In 15 states (+DC where applicable) you can choose who supplies the electricity itself, and in 16 states the gas supply — you save only when an offer beats your utility's price to compare. Rates differ 3.7× between the cheapest and most expensive states, and by hundreds of dollars a year between neighboring utilities in the same state. Per unit of heat, utility natural gas is currently the cheapest widely available heating fuel in most states; heat pumps close most of the electric gap.

All questions

Can I choose my electric company?
Not the wires company — distribution territory is fixed by address everywhere in the US. 15 states (including DC) allow residential electric supply choice and 16 allow gas supply choice; there you may buy the supply portion from a licensed competitor.
What is a price to compare?
The default supply rate your utility charges if you do not shop — printed on your bill in choice states. A competitive offer only saves money while its rate is below the price to compare for the same period; check term length, variable-rate resets, and exit fees.
Why do electricity rates differ so much between utilities?
Each utility's average reflects its own generation or purchased-power costs, delivery infrastructure, storm and wildfire costs, customer density, and state policy riders. Adjacent territories can differ by 5+ cents/kWh — hundreds of dollars a year at typical usage.
Is gas or electric heat cheaper?
Per million BTU nationally, utility gas runs about $15 versus $52 for electric resistance heat. A heat pump at seasonal COP 2.5-3 delivers heat near $19/MMBTU, competitive with gas in mild climates and cheap-power states.
Is heating oil more expensive than natural gas?
Yes — about 2.8x per BTU at current national prices ($39.96 vs $14.53 per MMBTU). Oil-heated homes in the Northeast commonly burn 600-800 gallons a year, so the gap is worth thousands of dollars annually.
How much is the average US electric bill?
At the national average of 17.65 cents/kWh (February 2026) and typical usage of 900 kWh/month, about $159 per month — $1906 per year. State averages range widely; see the national table.
Do third-party supplier offers actually save money?
Only when the contracted rate stays below your utility's price to compare. Fixed-rate offers can lock in savings; teaser and variable rates often reset higher after a few months. State commissions publish complaint data — always compare on the official state shopping site, never from a door-to-door pitch.
Where do these numbers come from?
Federal regulatory filings: EIA Form 861 (every utility's annual revenue, sales, and customers — the all-in average price customers actually paid), EIA monthly and weekly fuel-price series, the OpenEI Utility Rate Database, and state utility-commission registries. The methodology page documents every formula and vintage.
How often is this data updated?
Monthly for state electricity and gas prices, weekly in winter for heating oil and propane, annually (~October) for utility-level EIA-861 rates, and semiannually for the retail-choice registry.

Find your state

About these numbers. Rates shown are averages computed from federal regulatory filings (EIA Form 861) and public tariff databases — confirm with your utility before making decisions; your actual rate depends on your tariff, usage, and riders. Distribution utility is determined by address and generally cannot be chosen; in retail-choice states you may choose your supplier for the supply portion of the bill. Savings figures use 10,800 kWh/yr (US average residential usage) and are estimates, not quotes. EnergySavings is an independent data project by CertiHomes and is not affiliated with any utility, supplier, or government agency.