What Counts as Utilities
For this analysis, we include the four major household utilities: electricity, natural gas, water/sewer, and internet. Combined, these typically cost $250–$450/month for a typical household, representing 5–8% of the median household budget. While not as impactful as housing, utility costs vary enough between states to affect your total cost of living.
Average Monthly Utility Costs by State (Selected)
| State | Electricity | Gas | Water/Sewer | Internet | Total |
|---|---|---|---|---|---|
| Hawaii | $203 | N/A (rare) | $85 | $65 | $353 |
| Connecticut | $178 | $105 | $70 | $60 | $413 |
| California | $145 | $55 | $75 | $65 | $340 |
| Texas | $155 | $40 | $55 | $55 | $305 |
| Florida | $152 | $25 | $60 | $55 | $292 |
| Ohio | $115 | $65 | $50 | $50 | $280 |
| Idaho | $100 | $50 | $45 | $55 | $250 |
| Utah | $95 | $55 | $40 | $55 | $245 |
| Washington | $105 | $60 | $55 | $60 | $280 |
Why Electricity Bills Vary So Much
Three factors drive electricity cost differences:
- Energy source mix — states relying on cheap hydropower (Washington, Idaho) or natural gas have lower rates than those using oil (Hawaii, New England)
- Climate — hot states (Texas, Florida) have high summer AC costs; cold states have high winter heating costs. Mild climates (Pacific Northwest, coastal California) save on both.
- Deregulation — deregulated markets (Texas, parts of Northeast) can have competitive rates but also price spikes
The Climate Factor
Your total utility bill depends heavily on climate. A household in Phoenix might pay $300/month for electricity in summer (constant AC) but $80/month in winter. A household in Minnesota might pay $200/month for heating in winter but $60/month for electricity in summer. States with mild climates year-round (Oregon, coastal California) have the most predictable and often lowest total utility costs.
How to Reduce Utility Costs Anywhere
- Switch to LED lighting — saves $100–$200/year for an average household
- Programmable thermostat — reduces heating/cooling costs by 10–15%
- Shop electricity plans — in deregulated states, comparing providers can save 15–30%
- Energy audit — many utilities offer free home energy audits that identify $200–$500/year in savings
- Negotiate internet — call annually and ask for promotional rates or threaten to switch providers