Montana electricity rates
As of May 2026, the average residential electricity rate in Montana is 14.67 cents per kilowatt-hour, 20.4% below the U.S. average of 18.44¢. That is the 39th highest rate of the 50 states and the District of Columbia.
- Year over year
- ▲ +13.9% from 12.88¢ in May 2025
- Vs. U.S. average
- -20.4% U.S. average 18.44¢
- National rank
- #39 of 51 · #13 cheapest
- Supply market
- Western Interconnection Retail choice limited
Why Montana pays what it pays
Montana deregulated in the late 1990s and its utility sold its generating plants. The experiment was reversed after prices rose, but the state never got its cheap hydro back on the original terms. The dams were sold and later repurchased at a much higher price, which was then placed in rate base.
Since then the utility has been buying and building replacement supply: a share of a coal plant, new gas peaking capacity, and market purchases. Each addition raises the revenue requirement, and Montana's small customer base means each addition lands hard.
The state also carries severe geographic cost. Long lines cross mountains and prairie to serve very few customers per mile, with heavy winter weather and wildfire exposure both adding maintenance and mitigation spending.
Where Montana power comes from
Montana generated 29 TWh in 2025, the 40th largest output of any state. Coal supplied 35.2% of it. Renewables accounted for 57.6%, against 23.8% nationally, which ranks Montana #8 of 51.
- Coal 35.2% 10 TWh
- Hydroelectric 34.3% 10 TWh
- Wind 21.9% 6 TWh
- Natural gas 4.6% 1 TWh
- Solar 1.2% 348 GWh
- Other 2.6% 735 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 Montana compares
Montana ranks #39 of 51 jurisdictions by residential price, making it the 13th cheapest. Within the Mountain division, 4 of 7 neighbouring states are cheaper.
| State | ¢/kWh | YoY | Rank |
|---|---|---|---|
| Idaho | 12.35 | +4.0% | #51 |
| Utah | 12.96 | +2.9% | #50 |
| Nevada | 13.60 | +2.3% | #47 |
| New Mexico | 14.12 | -2.6% | #44 |
| Montana | 14.67 | +13.9% | #39 |
| Wyoming | 14.80 | +7.1% | #38 |
| Arizona | 15.23 | -3.1% | #32 |
| Colorado | 16.16 | +3.7% | #28 |
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 Montana households actually pay
Montana looks more expensive on paper than it is in practice. Its rate ranks #39 of 51, but the average bill ranks only 47th, because households there use 824 kWh a month against a national average of 871. See how every state compares on bills.
Estimate your Montana 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 Montana: gas, heat pump or resistance
Residential natural gas in Montana averaged $8.22 per thousand cubic feet in 2024, about $0.79 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 Montana, gas remains cheaper to run than a heat pump by about $5.52 per million BTU at these assumptions, roughly $331 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 Montana utility charges
The statewide average hides a wide spread. Across the 10 Montana utilities reporting to the EIA, rates run from 8.83¢ at Lower Yellowstone R E A, Inc to 15.52¢ at Fergus Electric Coop, Inc . Together they serve 478,892 residential customers.
| Utility | ¢/kWh | Bill | kWh | Customers |
|---|---|---|---|---|
| NorthWestern Energy LLC | 14.23 | $101 | 711 | 328,125 |
| Flathead Electric Coop Inc | 9.67 | $116 | 1,202 | 63,317 |
| Yellowstone Valley Elec Co-op | 13.35 | $121 | 904 | 21,182 |
| Montana-Dakota Utilities Co | 12.89 | $98 | 760 | 19,616 |
| USBIA-Mission Valley Power | 8.91 | $117 | 1,313 | 16,292 |
| Missoula Electric Coop, Inc | 10.50 | $113 | 1,076 | 14,686 |
| Fergus Electric Coop, Inc | 15.52 | $124 | 801 | 6,682 |
| Northern Lights, Inc | 12.52 | $134 | 1,073 | 3,985 |
| Lower Yellowstone R E A, Inc | 8.83 | $104 | 1,183 | 3,499 |
| Fall River Rural Elec Coop Inc | 11.39 | $114 | 1,003 | 1,508 |
Source: U.S. Energy Information Administration, Form EIA-861 annual electric power industry report, 2024.
Who sells electricity in Montana
NorthWestern Energy serves most of the state's population. Montana-Dakota Utilities covers the east, and rural electric co-operatives, many holding low-cost federal hydro allocations from the Western Area Power Administration, serve large areas.
Montana has no meaningful residential retail choice. The limited choice programme left over from restructuring is effectively closed to households. The Public Service Commission, whose five members are elected by district, sets rates.
Montana sits in The Mountain West. Cheap legacy coal and abundant sun, with costs decided by how fast each state is retiring one and building the other. Read the regional analysis.
What you can actually do about it
The gap between co-operative and investor-owned rates in Montana is unusually wide because of those federal hydro allocations. If you have a choice of service territory, it is worth checking.
Montana's rate cases have been contested and consequential, and the Montana Consumer Counsel publishes accessible filings explaining what each proposed increase actually funds.
Closest states by price
These jurisdictions charge within a fraction of a cent of Montana, which is useful if you are comparing a move or a multi-state operating cost.
Montana electricity rates: common questions
What is the average electricity rate in Montana?
The average residential electricity rate in Montana is 14.67 cents per kilowatt-hour as of May 2026, according to the U.S. Energy Information Administration. That is -20.4% relative to the national average of 18.44¢/kWh.
How much is the average monthly electric bill in Montana?
The average Montana household paid $113 a month across the twelve months to May 2026, using an average of 824 kWh. That is -27.2% against the U.S. average bill of $155, and it ranks 47th 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 Montana bill ranking different from its rate ranking?
A bill is the rate multiplied by usage, and usage varies between states more than price does. Montana ranks #39 of 51 on price but 47th on the actual bill, because households there use about 824 kWh a month against a national average of 871. Climate and heating fuel drive most of that difference.
Have electricity rates in Montana gone up?
Montana rates rose 13.9% over the year to May 2026, from 12.88¢ in May 2025 to 14.67¢.
Can I choose my electricity supplier in Montana?
Retail choice limited. Choice in Montana is restricted. Availability depends on your utility, your location and in some cases a programme cap.