Tennessee commercial electricity rates

Analyst note

The Tennessee commercial price sat above the U.S. average in 0 of 10 years; the gap was -0.48 ¢ in 2015 and -0.70 ¢ in 2024. In the 2024 ranking Tennessee sits between Minnesota (12.15 ¢) one place above and Montana (11.87 ¢) one place below; the top of the list is 26.13 ¢ away and the bottom 4.86 ¢. Tennessee was 23rd in 2015 with 10.16 ¢ and is 22nd now; a rise in the table. Tennessee commercial prices rose in 6 of 9 years. The largest rise was +10.6% in 2022, and the largest fall -1.8% in 2023. The Tennessee price peaked at 12.05 ¢ in 2024 and bottomed at 10.16 ¢ in 2015; 2024 is the peak and +18.6% from the low. Compounded, that is +1.91% a year in Tennessee, -0.12 points against the U.S. Tennessee buys 2.48% of all U.S. commercial electricity with 2.79% of the accounts, so the average Tennessee account uses 0.89 times the national average.

Tennessee commercial customers paid 12.05 ¢ in 2024, which puts the state 22nd of 51, a middle position, 0.70 ¢ under the U.S. Nine years moved the Tennessee commercial price +18.6% (+1.9% a year), level with the U.S. by 1.2 points. The sharpest year was 2022 at +10.6%; the peak came in 2024.

The latest Tennessee year moved +2.1%, so prices are still climbing. The Tennessee residential price of 12.42 ¢ sits 0.37 ¢ above. A Tennessee commercial account uses 5,525 kWh a month; priced at 12.05 ¢ that is about $666, and the sector buys 35.0% of Tennessee's power.

Counting revenue instead of kWh, Tennessee commercial accounts bring in 38.7% of Tennessee sector revenue on 35.0% of the kWh, a premium of 3.7 points that comes from the price level: 12.05 ¢ here against 12.42 ¢ for residential and 6.21 ¢ for industrial accounts. The average Tennessee commercial account uses 5,525 kWh a month, 24 of 51 among states on that measure; a residential account uses 0.21 times as much and an industrial account 346.95 times. Commercial accounts are 14.63% of the 3,710,074 accounts in Tennessee.