Kentucky electricity rates
As of May 2026, the average residential electricity rate in Kentucky is 14.98 cents per kilowatt-hour, 18.8% below the U.S. average of 18.44¢. That is the 36th highest rate of the 50 states and the District of Columbia.
- Year over year
- ▲ +8.2% from 13.85¢ in May 2025
- Vs. U.S. average
- -18.8% U.S. average 18.44¢
- National rank
- #36 of 51 · #16 cheapest
- Supply market
- PJM / MISO / TVA Regulated monopoly
Why Kentucky pays what it pays
Kentucky built part of its economy on cheap coal-fired electricity, and it retains a meaningful piece of that advantage: an old, largely depreciated coal fleet close to the mines, and no clean-energy mandate forcing early retirement.
The advantage is shrinking. Environmental compliance capital, maintenance on ageing units, and the rising cost of coal itself have all pushed costs up, and utilities have filed to retire units and replace them with gas and solar. Kentucky's legislature has made retirements harder by requiring commission approval, which slows the transition without lowering the underlying cost.
Parts of Kentucky sit in PJM and parts are served by TVA, so different corners of the state experienced different pressure over the past year.
Where Kentucky power comes from
Kentucky generated 74 TWh in 2025, the 22th largest output of any state. Coal supplied 66% of it, enough that the price of that fuel largely sets the price of electricity here. Renewables accounted for 7.8%, against 23.8% nationally, which ranks Kentucky #42 of 51.
- Coal 66% 49 TWh
- Natural gas 25.9% 19 TWh
- Hydroelectric 5.3% 4 TWh
- Solar 2.1% 2 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 Kentucky compares
Kentucky ranks #36 of 51 jurisdictions by residential price, making it the 16th cheapest. Within the East South Central division, 1 of 3 neighbouring states are cheaper.
| State | ¢/kWh | YoY | Rank |
|---|---|---|---|
| Tennessee | 14.47 | +5.4% | #40 |
| Kentucky | 14.98 | +8.2% | #36 |
| Mississippi | 16.16 | +8.9% | #29 |
| Alabama | 16.77 | +3.8% | #24 |
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 Kentucky households actually pay
Kentucky looks more expensive on paper than it is in practice. Its rate ranks #36 of 51, but the average bill ranks only 27th, because households there use 1,119 kWh a month against a national average of 871. See how every state compares on bills.
Estimate your Kentucky 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 Kentucky: gas, heat pump or resistance
Residential natural gas in Kentucky averaged $13.61 per thousand cubic feet in 2024, about $1.31 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 Kentucky, a heat pump and a gas furnace cost close enough to the same to run that fuel cost does not decide it. Cooling needs, equipment age and available incentives will.
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 Kentucky utility charges
The statewide average hides a wide spread. Across the 44 Kentucky utilities reporting to the EIA, rates run from 9.04¢ at City of Berea Municipal Utility to 16.07¢ at Grayson Rural Electric Coop Corp . Together they serve 2.0 million residential customers.
| Utility | ¢/kWh | Bill | kWh | Customers |
|---|---|---|---|---|
| Kentucky Utilities Co | 11.85 | $130 | 1,097 | 450,673 |
| Louisville Gas & Electric Co | 12.28 | $112 | 911 | 384,902 |
| Duke Energy Kentucky | 13.44 | $120 | 889 | 139,405 |
| Kentucky Power Co | 15.07 | $178 | 1,183 | 130,852 |
| South Kentucky Rural E C C | 12.92 | $130 | 1,006 | 64,877 |
| Owen Electric Coop Inc | 12.55 | $139 | 1,108 | 63,984 |
| Warren Rural Elec Coop Corp | 11.98 | $151 | 1,262 | 60,701 |
| Blue Grass Energy Coop Corp | 12.32 | $144 | 1,167 | 60,641 |
| Salt River Electric Coop Corp | 10.88 | $131 | 1,200 | 53,479 |
| Jackson Energy Coop Corp | 13.66 | $153 | 1,122 | 49,423 |
| Kenergy Corp | 15.15 | $179 | 1,181 | 47,292 |
| Pennyrile Rural Electric Coop | 13.16 | $156 | 1,185 | 40,645 |
| Nolin Rural Electric Coop Corp | 13.08 | $149 | 1,141 | 35,855 |
| West Kentucky Rural E C C | 13.46 | $156 | 1,157 | 32,062 |
| Meade County Rural E C C | 14.27 | $139 | 974 | 29,248 |
| City of Bowling Green | 11.48 | $102 | 890 | 27,181 |
| Inter County Energy Coop Corp | 13.74 | $150 | 1,095 | 26,655 |
| Clark Energy Coop Inc | 13.25 | $139 | 1,046 | 26,203 |
| Taylor County Rural E C C | 13.27 | $134 | 1,008 | 24,985 |
| Farmers Rural Electric Coop Corp | 13.08 | $136 | 1,043 | 24,889 |
| Jackson Purchase Energy Corporation | 15.64 | $184 | 1,178 | 23,979 |
| Fleming-Mason Energy Coop Inc | 13.05 | $132 | 1,009 | 23,666 |
| City of Owensboro | 13.42 | $103 | 768 | 23,286 |
| Cumberland Valley Electric, Inc. | 12.87 | $140 | 1,084 | 22,478 |
| Tri-County Elec Member Corp (TN) | 12.52 | $144 | 1,147 | 20,529 |
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 Kentucky
Louisville Gas and Electric and Kentucky Utilities, both PPL companies, serve the largest share of the state. Kentucky Power, an AEP company, serves the east. Big Rivers Electric and East Kentucky Power Cooperative supply co-operatives, and several communities in the west take power from TVA.
There is no residential retail choice. The Kentucky Public Service Commission sets rates for investor-owned utilities and for the generation and transmission co-operatives.
Kentucky sits in The Southeast. Vertically integrated utilities, no retail choice, moderate rates and the highest household consumption in the country. Read the regional analysis.
What you can actually do about it
Electric resistance heating is common in Kentucky and is the most expensive way to heat a home at any rate. A heat pump conversion is usually the single largest saving available.
Kentucky Power's territory in eastern Kentucky has materially higher rates than the state average. A household there should compare against its own utility rather than the statewide figure.
Closest states by price
These jurisdictions charge within a fraction of a cent of Kentucky, which is useful if you are comparing a move or a multi-state operating cost.
Kentucky electricity rates: common questions
What is the average electricity rate in Kentucky?
The average residential electricity rate in Kentucky is 14.98 cents per kilowatt-hour as of May 2026, according to the U.S. Energy Information Administration. That is -18.8% relative to the national average of 18.44¢/kWh.
How much is the average monthly electric bill in Kentucky?
The average Kentucky household paid $154 a month across the twelve months to May 2026, using an average of 1,119 kWh. That is -0.8% against the U.S. average bill of $155, and it ranks 27th 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 Kentucky bill ranking different from its rate ranking?
A bill is the rate multiplied by usage, and usage varies between states more than price does. Kentucky ranks #36 of 51 on price but 27th on the actual bill, because households there use about 1,119 kWh a month against a national average of 871. Climate and heating fuel drive most of that difference.
Have electricity rates in Kentucky gone up?
Kentucky rates rose 8.2% over the year to May 2026, from 13.85¢ in May 2025 to 14.98¢.
Can I choose my electricity supplier in Kentucky?
Regulated monopoly. Kentucky households buy both supply and delivery from their local regulated utility or co-operative; there is no competitive residential supplier market.