StateRates

Alaska electricity rates

As of May 2026, the average residential electricity rate in Alaska is 28.23 cents per kilowatt-hour, 53.1% above the U.S. average of 18.44¢. That is the 7th highest rate of the 50 states and the District of Columbia.

May 2026 · Residential average · EIA-861M
28.23¢ per kilowatt-hour
Year over year
▲ +8.2% from 26.08¢ in May 2025
Vs. U.S. average
+53.1% U.S. average 18.44¢
National rank
#7 of 51 · #45 cheapest
Supply market
Isolated intertie systems Regulated monopoly

Why Alaska pays what it pays

Alaska is not one electrical system but many. The Railbelt, covering Anchorage, the Kenai Peninsula and Fairbanks, is a single interconnected system running mainly on Cook Inlet natural gas and some hydro. Everywhere else is a village grid, typically diesel-fired, with fuel barged or flown in.

The Railbelt's central problem is that Cook Inlet gas production has been declining, and the region is planning for imported LNG to replace it. Importing gas into a place that has produced its own for decades is a large cost increase, and it is the main driver of the state's recent rate movement.

Rural Alaska pays far more than the state average, often several times the national rate before subsidy, because diesel generation at village scale with air-freighted fuel is simply expensive. The state's Power Cost Equalization programme subsidises residential rates in those communities.

Where Alaska power comes from

Alaska generated 6 TWh in 2025, the 48th largest output of any state. Natural gas supplied 40.4% of it. Renewables accounted for 30.9%, against 23.8% nationally, which ranks Alaska #19 of 51.

Net generation by fuel, 2025
  • Natural gas 3 TWh
  • Hydroelectric 2 TWh
  • Petroleum 1 TWh
  • Coal 790 GWh
  • Wind 130 GWh
  • Other 35 GWh

Source: U.S. Energy Information Administration, Electric Power Operational Data, net generation, all sectors. Net generation across all sectors. Nuclear counts as carbon-free but not renewable, so the two shares differ.

How Alaska compares

Alaska ranks #7 of 51 jurisdictions by residential price, making it the 45th cheapest. Within the Pacific division, 2 of 4 neighbouring states are cheaper.

Pacific division, May 2026
State ¢/kWh YoY Rank
Washington 14.95 +9.5% #37
Oregon 16.27 +2.3% #26
Alaska 28.23 +8.2% #7
California 33.25 -0.1% #2
Hawaii 52.00 +26.7% #1

Source: U.S. Energy Information Administration, Electric Power Monthly, Table 5.6.A: Average Price of Electricity to Ultimate Customers by End-Use Sector, by State. Data period May 2026. Retrieved 2026-08-19.

What Alaska households actually pay

Average monthly bill $157 +0.9% vs the U.S. average of $155
Average monthly usage 588 kWh · U.S. average 871
Bill rank #24 of 51 · rate rank #7
Bill year over year +9.7% from $143 the year before

Alaska looks cheaper on paper than it is in practice. It has the 45th cheapest rate in the country but only the 24th highest bill from the bottom, because households there use 588 kWh a month against a national average of 871. See how every state compares on bills.

Estimate your Alaska bill

Multiply your own usage by the May 2026 state average. Enter the kilowatt-hours from your last statement. This is a supply-and-delivery blended average, not a utility quote.

Estimated monthly bill $0
At the U.S. average $0

Rate used: …. U.S. average 18.44¢/kWh, May 2026. Source: U.S. Energy Information Administration, Electric Power Monthly Table 5.6.A.

Heating in Alaska: gas, heat pump or resistance

Residential natural gas in Alaska averaged $11.73 per thousand cubic feet in 2024, about $1.13 per therm, against a national average of $14.50. Put on the same scale as the state's electricity rate, the cost of delivering one million BTU of heat works out as follows.

Gas furnace $12.57 at 90% efficiency
Heat pump $27.58 at a seasonal COP of 3
Electric resistance $82.73 baseboard, wall or electric furnace

In Alaska, gas remains cheaper to run than a heat pump by about $15.01 per million BTU at these assumptions, roughly $901 over a 60 million BTU season. A heat pump can still be the better purchase once cooling, equipment age and incentives are counted, but not on heating cost alone.

Gas price: U.S. Energy Information Administration, Natural Gas Prices, price delivered to residential consumers, 2024. Assumptions are adjustable in the heating cost guide, and every state is compared on the gas price page.

What each Alaska utility charges

The statewide average hides a wide spread. Across the 10 Alaska utilities reporting to the EIA, rates run from 12.48¢ at Ketchikan Public Utilities to 69.95¢ at Alaska Village Elec Coop, Inc . Together they serve 273,042 residential customers.

Alaska utilities by size, 2024
Utility ¢/kWh Bill kWh Customers
Chugach Electric Assn Inc 21.24 $108 507 97,048
Matanuska Electric Assn Inc 23.37 $142 606 64,205
Golden Valley Elec Assn Inc 30.32 $179 591 40,675
Homer Electric Assn Inc 29.79 $148 497 29,721
Alaska Electric Light & Power Co. 12.93 $119 923 15,407
Alaska Village Elec Coop, Inc 69.95 $332 475 7,689
Ketchikan Public Utilities 12.48 $124 991 6,561
Alaska Power and Telephone Co 37.18 $151 406 5,737
Kodiak Electric Assn Inc 18.83 $131 695 4,772
Kotzebue Electric Assn Inc 47.90 $251 524 1,227

Source: U.S. Energy Information Administration, Form EIA-861 annual electric power industry report, 2024.

Who sells electricity in Alaska

Chugach Electric Association serves Anchorage, Golden Valley Electric Association serves Fairbanks, and Homer Electric, Matanuska Electric and Seward serve other Railbelt areas. Nearly all of them are member-owned co-operatives. The Alaska Village Electric Cooperative and dozens of independent village utilities serve the rest.

There is no retail choice. The Regulatory Commission of Alaska oversees most utilities, though some are exempt.

Alaska sits in Alaska and Hawaii. The two states with no connection to any other grid, where fuel logistics rather than market design set the price. Read the regional analysis.

What you can actually do about it

The Power Cost Equalization programme is the most important thing for a rural Alaskan household to be enrolled in, and it applies only to a capped monthly amount of residential usage.

Railbelt utilities have been discussing consolidation and joint dispatch for years. Whether that happens is the main long-term variable in Alaskan rates, because operating five small utilities on one system carries redundant fixed costs.

Closest states by price

These jurisdictions charge within a fraction of a cent of Alaska, which is useful if you are comparing a move or a multi-state operating cost.

Alaska electricity rates: common questions

What is the average electricity rate in Alaska?

The average residential electricity rate in Alaska is 28.23 cents per kilowatt-hour as of May 2026, according to the U.S. Energy Information Administration. That is +53.1% relative to the national average of 18.44¢/kWh.

How much is the average monthly electric bill in Alaska?

The average Alaska household paid $157 a month across the twelve months to May 2026, using an average of 588 kWh. That is +0.9% against the U.S. average bill of $155, and it ranks 24th highest of the 51 jurisdictions. Your own bill depends on the size of your home, your heating and cooling equipment and your rate schedule.

Why is the Alaska bill ranking different from its rate ranking?

A bill is the rate multiplied by usage, and usage varies between states more than price does. Alaska ranks #7 of 51 on price but 24th on the actual bill, because households there use about 588 kWh a month against a national average of 871. Climate and heating fuel drive most of that difference.

Have electricity rates in Alaska gone up?

Alaska rates rose 8.2% over the year to May 2026, from 26.08¢ in May 2025 to 28.23¢.

Can I choose my electricity supplier in Alaska?

Regulated monopoly. Alaska households buy both supply and delivery from their local regulated utility or co-operative; there is no competitive residential supplier market.