10 States With the Lowest Utility Costs

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Some states have much higher average utility costs than others. Here are the 10 states with the lowest utility bills. 

We pay utility costs all year round, but most of us don’t think that much about them until this time of year. With more people staying cozy in their homes and thermostats cranked up, it’s not unusual to see gas and electric bills make a sizable jump during the winter.

But not all states see huge increases. Utility costs vary a lot by location. Below, we’ll look at which states have the lowest average utility costs and how you can keep yours down this winter.

The 10 states with the lowest average utility costs

The following 10 states have the lowest average utility costs, according to the Missouri Economic Research and Information Center:

Louisiana (17% cheaper than average)South Dakota (13.8% cheaper)Mississippi (13% cheaper)Nebraska (12.2% cheaper)Georgia (11.7% cheaper)Illinois (11.7% cheaper)Idaho (11.6% cheaper)Arkansas (8.5% cheaper)Wyoming (8.1% cheaper)North Carolina (7.6% cheaper)

But this isn’t to say you should despair if your state isn’t on the list. Actual utility costs depend on a lot of factors. First and foremost is your usage. If you have every light and appliance running in your house all day and your thermostat set to 80, you’re going to have some pretty high bills, even if you’re living in Louisiana.

Likewise, if you’re careful to minimize your utility usage and keep temperatures a little lower, you could have a manageable utility bill even if you live in a more expensive state.

When you use your utilities also matters, since many companies charge higher rates at certain times of the day. And a lot also depends on the rates your utility provider charges.

How to keep your utility costs down this winter

You have some control over how much gas and electricity you’re consuming. Keeping usage to a minimum is the simplest way to keep utility costs within your budget. Try taking steps like:

Turning off lights and TVs when you leave the roomSetting your thermostat and water heater temperature a degree lower than normalDoing things like drying clothes or charging electric vehicles at off-peak hours when it’s cheaper

In addition, consider reviewing your home for weatherproofing opportunities. Seal drafty doors and windows or cover them with plastic to prevent heat from escaping. You should be able to get materials from your local hardware store.

It’s also worth checking with your utility provider to see if it offers a payment plan. Some companies will look back at your average electricity and gas usage for the past year and divide this by 12. Then, it’ll give you a regular, monthly payment so you don’t experience as many seasonal highs and lows. Keep in mind that it will reevaluate your payment amount annually, and your bill could increase if your usage goes up.

Finally, if you have some extra cash in your bank account, consider investing in solar panels. There’s a big upfront cost here, but it could save you a lot on electricity costs in the long run. Plus, you’ll help the environment.

If you try all of this and you’re still struggling with your bills, look into programs that help low-income households with utility costs. Apply right away if you think you qualify so you can begin receiving assistance as soon as possible.

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