Tennessee residential electricity rates

Analyst note

The Tennessee residential price sat above the U.S. average in 0 of 10 years; the gap was -2.35 ¢ in 2015 and -4.06 ¢ in 2024. In the 2024 ranking Tennessee sits between Wyoming (12.47 ¢) one place above and Arkansas (12.32 ¢) one place below; the top of the list is 30.44 ¢ away and the bottom 0.91 ¢. Tennessee was 43rd in 2015 with 10.30 ¢ and is 43rd now; no move in the table. Tennessee residential prices rose in 6 of 9 years. The largest rise was +10.7% in 2022, and the largest fall -1.0% in 2020. The Tennessee price peaked at 12.42 ¢ in 2024 and bottomed at 10.30 ¢ in 2015; 2024 is the peak and +20.6% from the low. Compounded, that is +2.10% a year in Tennessee, -0.88 points against the U.S. Tennessee buys 2.96% of all U.S. residential electricity with 2.21% of the accounts, so the average Tennessee account uses 1.34 times the national average.

A bottom-ten price: 12.42 ¢/kWh for Tennessee residential accounts, rank 43 of 51, -24.6% against the U.S. Tennessee: +20.6% over nine years, or +2.1% a year, trailing the national +30.3% by 9.7 points; 2022 was the biggest single move (+10.7%) and 2024 the high.

Last year's change in Tennessee was +1.9% and still rising. Against the commercial price of 12.05 ¢ the gap is 0.37 ¢. Residential sales are 42.6% of Tennessee electricity sold, and an average Tennessee account used 1,154 kWh a month, an implied bill near $143.

Counting revenue instead of kWh, Tennessee residential accounts bring in 48.5% of Tennessee sector revenue on 42.6% of the kWh, a premium of 6.0 points that comes from the price level: 12.42 ¢ here against 12.05 ¢ for commercial and 6.21 ¢ for industrial accounts. The average Tennessee residential account uses 1,154 kWh a month, 3 of 51 among states on that measure; a commercial account uses 4.79 times as much and a industrial account 1661.59 times. Residential accounts are 85.34% of the 3,710,074 accounts in Tennessee.