In this article, we will be covering the 20 US states with the highest electricity consumption. If you wish to skip our detailed analysis, you can move directly to the 5US States with the Highest Electricity Consumption.
Electricity Consumption in America: An Analysis
The global electricity consumption has been forecasted to rise in all major energy end-use sectors through 2050. This increase in electricity consumption will be facilitated by extended electrification across countries by expanding electricity grids thereby giving access to those who were previously deprived of it. Although consumption will be halted by efficiency improvements, the rise in consumption from more electrification will surpass the former. On the contrary, the use of electricity in the United States is expected to grow at a slow pace. From 2022 through 20250, the yearly growth in the country's electricity demand will average about 1%.
As reported by the US Energy Information Administration, the electric power sector accounted for 96% of the utility-scale electricity generation in the United States in 2022. This is mostly sold to sectors including transportation, industrial, residential, and commercial. Total electricity consumption in the country was recorded at 4.07 trillion kWh, the highest figure recorded. Total direct use of electricity by the industrial and commercial sectors made up 3.5% of the total electricity end-use consumption, which went up 3.2% higher as compared to 2021. Rises in the retail electricity sales to the residential sector and to the commercial sector were also witnessed in 2022. At the same time, electricity retail sales to the industrial sector experienced a year-over-year increase of 2.0%.
In the residential sector, the largest electricity uses were reported to be heating and cooling, according to the EIA. Based on a recent survey, air conditioning served as the biggest use of electricity in US homes. Similarly, the largest shares of total annual electricity use in the commercial sector are computers and office equipment, refrigeration, space cooling, lighting, and ventilation. Since the introduction of high-efficiency lighting equipment, electricity use for lighting has dropped while electricity consumption for computers and office equipment has climbed. In the industrial sector, electricity is primarily used to operate machinery and facilities. In 2022, manufacturers made up 78% of the total annual industrial sector electricity purchases while construction accounted for 8%, mining 8%, and agriculture 7% respectively. For a state-wise analysis, you can view states with the cheapest electricity in the US or alternatively states with the most expensive electricity in the US.
Major Electric Utility Companies in the US
Some of the best electric utility stocks include NextEra Energy, Inc. (NYSE:NEE), Edison International (NYSE:EIX), and Entergy Corporation (NYSE:ETR). Let's take a look at what these firms have been up to.
NextEra Energy, Inc. (NYSE:NEE) is a clean energy company that owns the largest electric utility in the US, Florida Power & Light Company. The subsidiary provides affordable electricity to more than 12 million people. Recently, NextEra Energy, Inc. (NYSE:NEE) made an attempt to keep customer bills low. On March 13, the company reported that Florida Power & Light Company requested approval for the reduction of the fuel charge on customer bills beginning in May. In case the request gets approved, a 1,000-kWh residential customer bill would be more than $14 cheaper in May. Rates have already been scheduled to decrease in April.
Edison International (NYSE:EIX) generates and distributes electric power through its subsidiaries. Southern California Edison is the company's subsidiary which serves as one of the largest American electric utilities. On March 19, Edison International (NYSE:EIX) reported that the customers of Southern California Edison will be receiving an $86 California Climate Credit on their April and October bills. This twice-a-year credit will automatically become a part of the bills for the firm’s residential and small business customers. The credit’s funding comes from California’s Greenhouse Gas Cap-and-Trade Program. This program requires industrial facilities and power plants with greenhouse gas emissions to buy carbon pollution allowances.
Entergy Corporation (NYSE:ETR) is a renowned integrated energy company. The company’s electric utilities generate, transmit, distribute, and sell electric power in parts of Arkansas, Mississippi, Texas, and Louisiana. On March 25, Entergy Corporation (NYSE:ETR) reported that Entergy Louisiana will be fostering economic progress in the state through new infrastructure. The firm plans to construct a new 500/230kV substation in Iberville Parish in addition to 60 miles of 230kV transmission lines crossing the five parishes from Iberville to Jefferson. It has also proposed a plan to the Louisiana Public Service Commission which aims to enhance the transmission- and distribution-level electric equipment in its Louisiana service territory. Simultaneously, the firm is also making efforts to create the largest expansion of renewable power in the history of Louisiana.
Without further ado, let’s move to the 20 US states with the highest electricity consumption.
20 US States with the Highest Electricity Consumption
20 US States with the Highest Electricity Consumption
Our Methodology:
In order to compile a list of the 20 US states with the highest electricity consumption, we sourced data from the US Energy Information Administration. As reported by the source, consumption refers to the electricity amount sold to ultimate customers. Hence, we acquired the state-wise consumption of electricity. The most recent estimates are from 2022. Therefore, the 20 US states with the highest electricity consumption have been ranked in ascending order of their electricity consumption in 2022.
The unit used for the metric is Btu (British thermal unit) which is a common energy unit utilized by the US Energy Information Administration. As reported by the US Energy Information Administration, it updated its methodology to calculate the primary energy consumption of electricity generation from noncombustible renewable energy sources in October 2023 which will now be expressed in British thermal units (Btu) after conversion from kilowatt-hours. Hence, we have cited the Btu values. Simultaneously, we have also mentioned the kilowatt-hour values for better understanding.
20 US States with the Highest Electricity Consumption
20. Kentucky
Total Electricity Consumption (2022): 257.1 Trillion Btu
Total Electricity Consumption (2022): 75,339 Million Kilowatthours
Kentucky recorded total electricity consumption of 257.1 trillion Btu in 2022. The highest chunk of this consumption was shared by the industrial sector as represented by its consumption of 98.3 trillion Btu.
19. Missouri
Total Electricity Consumption (2022):274 Trillion Btu
Total Electricity Consumption (2022): 80,306 Million Kilowatthours
Electricity consumption in Missouri is one of the highest among other US states. The state consumed 274 trillion Btu of electricity in 2022. Furthermore, the residential sector contributed the most to the overall electricity consumption.
18. South Carolina
Total Electricity Consumption (2022): 282.4 Trillion Btu
Total Electricity Consumption (2022): 82,758 Million Kilowatthours
With an electricity consumption of 282.4 trillion Btu in 2022, South Carolina ranks among the 20 US states with the highest electricity consumption. 110.2 trillion Btu of electricity was consumed only by the state’s residential sector.
17. Arizona
Total Electricity Consumption (2022): 287.3 Trillion Btu
Total Electricity Consumption (2022): 84,197 Million Kilowatthours
Arizona has a significant electricity consumption. As reported by the US Energy Information Administration, the state’s electricity consumption was recorded at 287.3 trillion Btu in 2022. Residential and commercial sectors accounted for the most consumption.
16. Alabama
Total Electricity Consumption (2022): 296.9 Trillion Btu
Total Electricity Consumption (2022): 87,028 Million Kilowatthours
Alabama’s total electricity consumption was 296.9 trillion Btu in 2022, the 16th highest among all US states. Consumption has been high in the industrial and residential sectors in the state while the commercial sector recorded relatively lower electricity consumption.
15. Washington
Total Electricity Consumption (2022): 310.1 Trillion Btu
Total Electricity Consumption (2022): 90,897 Million Kilowatthours
Washington ranks as another US state with a major electricity consumption. In 2022, the state consumed 310.1 trillion Btu of electricity. The state’s transportation sector had negligible consumption. On the other extreme, the residential sector recorded the highest consumption.
14. Louisiana
Total Electricity Consumption (2022): 324.6 Trillion Btu
Total Electricity Consumption (2022): 95,139 Million Kilowatthours
In 2022, the industrial sector in Louisiana highly contributed to the overall electricity consumption by recording 137 trillion Btu. The residential sector followed with its electricity consumption of 107.3 trillion Btu.
13. Indiana
Total Electricity Consumption (2022): 341.4 Trillion Btu
Total Electricity Consumption (2022): 100,044 Million Kilowatthours
The total electricity consumption in Indiana was 341.4 trillion Btu in 2022, with the industrial sector making up the highest proportion of this consumption. Hence, the state of Indiana has one of the highest electricity consumption in the country.
12. Michigan
Total Electricity Consumption (2022): 343.4 Trillion Btu
Total Electricity Consumption (2022): 100,639 Million Kilowatthours
Michigan recorded 343.4 trillion Btu as its electricity consumption in 2022. 119.5 trillion Btu by residential, 126.6 trillion Btu by commercial, and 97.2 trillion Btu by industrial sectors make up the total electricity consumption in the state.
11. Tennessee
Total Electricity Consumption (2022): 348.4 Trillion Btu
Total Electricity Consumption (2022): 102,112 Million Kilowatthours
In 2022, Tennessee consumed 348.4 trillion Btu of electricity. 148.8 trillion Btu were consumed by the state’s residential sector. Therefore, Tennessee ranks as another US state which records a high consumption of electricity.
10. Virginia
Total Electricity Consumption (2022): 451.3 Trillion Btu
Total Electricity Consumption (2022): 132,265 Million Kilowatthours
The 20 US states with the highest electricity consumption rank Virginia as well. According to the US Energy Information Administration, the state’s consumption of electricity was as high as 451.3 trillion Btu in 2022.
9. Illinois
Total Electricity Consumption (2022): 463.6 Trillion Btu
Total Electricity Consumption (2022): 135,872 Million Kilowatthours
In 2022, Illinois consumed a total of 463.6 trillion Btu of electricity, one of the highest among the states. The residential, commercial, and industrial sectors recorded close consumption however the commercial sector accounted for the most portion of the total consumption.
8. North Carolina
Total Electricity Consumption (2022): 475 Trillion Btu
Total Electricity Consumption (2022): 139,207 Million Kilowatthours
Electricity consumption in North Carolina was recorded at 475 trillion Btu in 2022. Out of these, 213.1 trillion Btu were consumed by the residential sector in the state. Hence, North Carolina ranks among the US states with high electricity consumption.
7. New York
Total Electricity Consumption (2022): 488.6 Trillion Btu
Total Electricity Consumption (2022): 143,211 Million Kilowatthours
In 2022, New York recorded one of the highest electricity consumption in the country. The commercial sector consumed a significant 246.4 trillion Btu out of the total state consumption of 488.6 trillion Btu.
6. Pennsylvania
Total Electricity Consumption (2022): 494.5 Trillion Btu
Total Electricity Consumption (2022): 145,045 Million Kilowatthours
Pennsylvania recorded 494.5 trillion Btu as its electricity consumption in 2022 and ranks as one of the US states with a high electricity consumption. The consumption breakdown was 192.5 trillion Btu by residential, 127 trillion Btu by commercial, 173.6 trillion Btu by industrial, and 1.8 trillion Btu by transportation.
