Tennessee electricity rates
As of May 2026, the average residential electricity rate in Tennessee is 14.47 cents per kilowatt-hour, 21.5% below the U.S. average of 18.44¢. That is the 40th highest rate of the 50 states and the District of Columbia.
- Year over year
- ▲ +5.4% from 13.73¢ in May 2025
- Vs. U.S. average
- -21.5% U.S. average 18.44¢
- National rank
- #40 of 51 · #12 cheapest
- Supply market
- TVA Regulated monopoly
Why Tennessee pays what it pays
Every electricity customer in Tennessee is ultimately supplied by the Tennessee Valley Authority. TVA is a federal corporation that generates power and sells it wholesale to local distributors, and its portfolio of a large nuclear fleet, the Tennessee River hydro system, gas and a shrinking coal fleet produces a low and remarkably stable wholesale price.
TVA is self-financing rather than shareholder-owned, so there is no return on equity in the price, and it is not rate-regulated by a state commission or by FERC in the way an investor-owned utility would be. Its board sets rates.
What varies within Tennessee is the local distributor's markup, which covers poles, wires, meters and local operations. That is why Memphis, Nashville and Chattanooga bills differ despite an identical wholesale source.
Where Tennessee power comes from
Tennessee generated 75 TWh in 2025, the 20th largest output of any state. Nuclear supplied 39.3% of it. Renewables accounted for 13.5%, against 23.8% nationally, which ranks Tennessee #30 of 51.
- Nuclear 39.3% 29 TWh
- Coal 24.2% 18 TWh
- Natural gas 23.5% 18 TWh
- Hydroelectric 11.2% 8 TWh
- Solar 1.8% 1 TWh
- Wood and biomass 0.5% 383 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 Tennessee compares
Tennessee ranks #40 of 51 jurisdictions by residential price, making it the 12th cheapest. Within the East South Central division, no state is 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 Tennessee households actually pay
Estimate your Tennessee 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 Tennessee: gas, heat pump or resistance
Residential natural gas in Tennessee averaged $10.75 per thousand cubic feet in 2024, about $1.04 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 Tennessee, gas remains cheaper to run than a heat pump by about $2.62 per million BTU at these assumptions, roughly $157 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 Tennessee utility charges
The statewide average hides a wide spread. Across the 83 Tennessee utilities reporting to the EIA, rates run from 10.34¢ at City of Newbern to 14.33¢ at Forked Deer Electric Coop, Inc . Together they serve 3.2 million residential customers.
| Utility | ¢/kWh | Bill | kWh | Customers |
|---|---|---|---|---|
| Nashville Electric Service | 13.47 | $138 | 1,021 | 417,640 |
| City of Memphis | 12.16 | $139 | 1,139 | 380,286 |
| Middle Tennessee E M C | 11.76 | $148 | 1,261 | 307,370 |
| Knoxville Utilities Board | 12.54 | $137 | 1,093 | 193,707 |
| City of Chattanooga | 12.32 | $137 | 1,110 | 164,417 |
| Volunteer Electric Coop | 12.19 | $144 | 1,183 | 104,387 |
| Cumberland Elec Member Corp | 12.99 | $177 | 1,362 | 100,585 |
| City of Clarksville | 12.77 | $143 | 1,121 | 75,953 |
| Johnson City | 12.41 | $143 | 1,156 | 72,205 |
| Duck River Elec Member Corp | 12.50 | $169 | 1,349 | 71,342 |
| City of Lenoir | 11.95 | $146 | 1,221 | 62,455 |
| Upper Cumberland E M C | 12.77 | $151 | 1,179 | 45,560 |
| Southwest Tennessee E M C | 12.90 | $167 | 1,290 | 43,750 |
| Appalachian Electric Coop | 12.93 | $158 | 1,222 | 43,709 |
| Kingsport Power Co | 12.84 | $158 | 1,228 | 43,159 |
| Sevier County Electric System | 11.33 | $128 | 1,133 | 35,626 |
| Sequachee Valley Electric Coop | 12.97 | $148 | 1,143 | 33,206 |
| City of Greeneville | 11.90 | $144 | 1,209 | 32,388 |
| City of Jackson | 11.97 | $128 | 1,067 | 31,856 |
| Columbia Power System | 12.00 | $131 | 1,088 | 31,166 |
| City of Dickson | 11.65 | $143 | 1,232 | 30,808 |
| Fort Loudoun Electric Coop | 12.11 | $162 | 1,341 | 30,527 |
| Meriwether Lewis Electric Coop | 13.68 | $161 | 1,180 | 30,319 |
| Caney Fork Electric Coop, Inc | 12.89 | $149 | 1,160 | 29,631 |
| City of Bristol | 10.81 | $135 | 1,251 | 29,622 |
Showing the 25 largest of 83. 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 Tennessee
Local power companies distribute TVA power: Nashville Electric Service, Memphis Light Gas and Water, EPB in Chattanooga, Knoxville Utilities Board and roughly a hundred and fifty others, most of them municipal or co-operative.
There is no retail choice and no state rate regulation of TVA. Distributor rates are set by local boards under contracts with TVA.
Tennessee 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
TVA publishes its wholesale rate changes in advance and most distributors pass them through directly, so the federal announcement is the real early warning for a Tennessee bill.
Several Tennessee distributors, EPB most prominently, offer time-of-use options and demand-response programmes with genuine savings. They are opt-in and lightly advertised.
Closest states by price
These jurisdictions charge within a fraction of a cent of Tennessee, which is useful if you are comparing a move or a multi-state operating cost.
Tennessee electricity rates: common questions
What is the average electricity rate in Tennessee?
The average residential electricity rate in Tennessee is 14.47 cents per kilowatt-hour as of May 2026, according to the U.S. Energy Information Administration. That is -21.5% relative to the national average of 18.44¢/kWh.
How much is the average monthly electric bill in Tennessee?
The average Tennessee household paid $162 a month across the twelve months to May 2026, using an average of 1,199 kWh. That is +4.0% against the U.S. average bill of $155, and it ranks 17th 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 Tennessee bill ranking different from its rate ranking?
A bill is the rate multiplied by usage, and usage varies between states more than price does. Tennessee ranks #40 of 51 on price but 17th on the actual bill, because households there use about 1,199 kWh a month against a national average of 871. Climate and heating fuel drive most of that difference.
Have electricity rates in Tennessee gone up?
Tennessee rates rose 5.4% over the year to May 2026, from 13.73¢ in May 2025 to 14.47¢.
Can I choose my electricity supplier in Tennessee?
Regulated monopoly. Tennessee households buy both supply and delivery from their local regulated utility or co-operative; there is no competitive residential supplier market.