Indiana electricity rates
As of May 2026, the average residential electricity rate in Indiana is 18.15 cents per kilowatt-hour, 1.6% below the U.S. average of 18.44¢. That is the 20th highest rate of the 50 states and the District of Columbia.
- Year over year
- ▲ +7.4% from 16.90¢ in May 2025
- Vs. U.S. average
- -1.6% U.S. average 18.44¢
- National rank
- #20 of 51 · #32 cheapest
- Supply market
- MISO / PJM Regulated monopoly
Why Indiana pays what it pays
For decades Indiana had among the lowest industrial and residential rates in the country, built on mine-mouth coal generation. That fleet is being retired, some units on economics and some on environmental compliance, and the replacement is a mix of gas, wind, solar and storage that requires new capital rather than fuel from next door.
Utilities have been filing regular rate cases to recover that capital, and Indiana's regulatory framework includes trackers that let certain investments recover between cases. The result is a rate that has been climbing steadily rather than in single large steps.
Indiana also has a large industrial load in steel, refining and manufacturing, which historically helped spread fixed costs across a big base. As some of that load has flattened, more of the fixed cost sits with everyone else.
Where Indiana power comes from
Indiana generated 110 TWh in 2025, the 13th largest output of any state. Coal supplied 44.9% of it. Renewables accounted for 15.8%, against 23.8% nationally, which ranks Indiana #27 of 51.
- Coal 44.9% 49 TWh
- Natural gas 36.2% 40 TWh
- Wind 9.4% 10 TWh
- Solar 6.1% 7 TWh
- Other 2.8% 3 TWh
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 Indiana compares
Indiana ranks #20 of 51 jurisdictions by residential price, making it the 32nd cheapest. Within the East North Central division, no state is cheaper.
| State | ¢/kWh | YoY | Rank |
|---|---|---|---|
| Indiana | 18.15 | +7.4% | #20 |
| Ohio | 19.52 | +14.2% | #18 |
| Wisconsin | 19.74 | +4.2% | #17 |
| Michigan | 22.01 | +8.8% | #14 |
| Illinois | 23.85 | +28.4% | #12 |
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 Indiana households actually pay
Indiana looks cheaper on paper than it is in practice. It has the 32nd cheapest rate in the country but only the 22nd highest bill from the bottom, because households there use 946 kWh a month against a national average of 871. See how every state compares on bills.
Estimate your Indiana 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.
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 Indiana: gas, heat pump or resistance
Residential natural gas in Indiana averaged $9.50 per thousand cubic feet in 2024, about $0.92 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.
In Indiana, gas remains cheaper to run than a heat pump by about $7.55 per million BTU at these assumptions, roughly $453 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 Indiana utility charges
The statewide average hides a wide spread. Across the 44 Indiana utilities reporting to the EIA, rates run from 8.52¢ at City of Auburn to 19.09¢ at Northern Indiana Pub Serv Co . Together they serve 2.9 million residential customers.
| Utility | ¢/kWh | Bill | kWh | Customers |
|---|---|---|---|---|
| Duke Energy Indiana, LLC | 12.75 | $120 | 943 | 796,265 |
| AES Indiana | 13.75 | $123 | 896 | 469,499 |
| Northern Indiana Pub Serv Co | 19.09 | $126 | 659 | 430,648 |
| Indiana Michigan Power Co | 16.31 | $135 | 827 | 422,062 |
| Southern Indiana Gas & Elec Co | 17.52 | $155 | 886 | 133,795 |
| Hendricks County Rural E M C | 13.84 | $160 | 1,156 | 37,638 |
| South Central Indiana REMC | 17.73 | $191 | 1,077 | 34,901 |
| Northeastern Rural E M C | 14.96 | $149 | 999 | 30,610 |
| City of Anderson | 12.82 | $109 | 847 | 29,533 |
| Tipmont Rural Elec Member Corp | 16.07 | $154 | 961 | 28,885 |
| Johnson County Rural E M C | 13.79 | $150 | 1,085 | 28,279 |
| Clark County Rural E M C | 14.63 | $176 | 1,201 | 27,103 |
| Southeastern Indiana R E M C | 15.22 | $172 | 1,131 | 26,172 |
| City of Mishawaka | 10.32 | $62 | 599 | 25,071 |
| Jackson County Rural E M C | 15.32 | $192 | 1,252 | 24,215 |
| Harrison County Rural E M C | 13.88 | $175 | 1,263 | 23,221 |
| Kankakee Valley Rural E M C | 15.20 | $146 | 958 | 18,994 |
| Utilities Dist-Western IN REMC | 16.10 | $171 | 1,064 | 18,898 |
| Boone County Rural EMC | 16.51 | $197 | 1,195 | 18,371 |
| Heartland REMC | 14.72 | $176 | 1,195 | 18,013 |
| NineStar Connect | 15.68 | $194 | 1,237 | 17,770 |
| Kosciusko County Rural E M C | 13.27 | $119 | 897 | 17,435 |
| City of Richmond | 13.12 | $120 | 915 | 16,310 |
| Western Indiana Energy REMC | 14.39 | $169 | 1,173 | 15,017 |
| Carroll-White REMC | 14.93 | $159 | 1,065 | 14,807 |
Showing the 25 largest of 44. Utilities with fewer than 1,000 residential customers are not published.
Source: U.S. Energy Information Administration, Form EIA-861 annual electric power industry report, 2024.
Who sells electricity in Indiana
AES Indiana serves Indianapolis, Duke Energy Indiana covers a large central and southern territory, NIPSCO serves the northwest, Indiana Michigan Power the northeast, and CenterPoint Energy Indiana South the southwest. Rural electric membership corporations cover much of the countryside.
There is no residential retail choice in Indiana. Utilities are vertically integrated and rates are set by the Indiana Utility Regulatory Commission.
Indiana sits in The Midwest. A single wholesale market stretching from Manitoba to the Gulf, containing both the cheapest wind states and some of the highest delivery costs in the country. Read the regional analysis.
What you can actually do about it
Rate-case filings are the thing to watch. Indiana's commission publishes proposed increases well before they take effect, and the consumer counselor's office files public analyses that are readable and specific about which cost is driving which increase.
Several Indiana utilities offer optional time-of-use and EV-specific rates. They are not the default and have to be requested.
Closest states by price
These jurisdictions charge within a fraction of a cent of Indiana, which is useful if you are comparing a move or a multi-state operating cost.
Indiana electricity rates: common questions
What is the average electricity rate in Indiana?
The average residential electricity rate in Indiana is 18.15 cents per kilowatt-hour as of May 2026, according to the U.S. Energy Information Administration. That is -1.6% relative to the national average of 18.44¢/kWh.
How much is the average monthly electric bill in Indiana?
The average Indiana household paid $159 a month across the twelve months to May 2026, using an average of 946 kWh. That is +2.2% against the U.S. average bill of $155, and it ranks 22nd 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 Indiana bill ranking different from its rate ranking?
A bill is the rate multiplied by usage, and usage varies between states more than price does. Indiana ranks #20 of 51 on price but 22nd on the actual bill, because households there use about 946 kWh a month against a national average of 871. Climate and heating fuel drive most of that difference.
Have electricity rates in Indiana gone up?
Indiana rates rose 7.4% over the year to May 2026, from 16.90¢ in May 2025 to 18.15¢.
Can I choose my electricity supplier in Indiana?
Regulated monopoly. Indiana households buy both supply and delivery from their local regulated utility or co-operative; there is no competitive residential supplier market.