How we adjust electricity prices for inflation
In one sentence
A real price is the printed price restated in the dollars of one year, here 2025, so that prices from different years can be compared. From 2001 to 2025 the U.S. home electricity price went +102% as printed and +11% after inflation.
A worked example
The CPI-U was 177.1 on average in 2001 and 321.9 in 2025: general prices rose 82%. A U.S. home paid 8.58 ¢ per kWh in 2001. Multiply by 321.9 / 177.1 = 1.818 and the 2001 price becomes 15.60 ¢ in 2025 dollars. The 2025 price is 17.30 ¢, so the real change is +10.9%, while the printed change is +101.6%.
| Year | CPI-U annual average | Factor to 2025 dollars | U.S. home price as printed | U.S. home price in 2025 dollars |
|---|---|---|---|---|
| 2001 | 177.1 | 1.818 | 8.58 ¢ | 15.60 ¢ |
| 2005 | 195.3 | 1.648 | 9.45 ¢ | 15.58 ¢ |
| 2010 | 218.1 | 1.476 | 11.54 ¢ | 17.04 ¢ |
| 2015 | 237.0 | 1.358 | 12.65 ¢ | 17.18 ¢ |
| 2019 | 255.7 | 1.259 | 13.01 ¢ | 16.38 ¢ |
| 2021 | 271.0 | 1.188 | 13.66 ¢ | 16.23 ¢ |
| 2023 | 304.7 | 1.057 | 16.00 ¢ | 16.91 ¢ |
| 2025 | 321.9 | 1.000 | 17.30 ¢ | 17.30 ¢ |
Why it matters
A price that rose 50% sounds alarming; if everything else rose 80% over the same years, the real cost fell. The opposite also holds: a price that looks flat can be a real cut or a real rise depending on the period. The state pages show both lines side by side.
The adjustment uses one national index. It does not know about local price levels, so a state with faster local inflation than the nation would look slightly better here than it feels.
What this page does not do
- It uses the average residential price: total revenue divided by kWh sold. Fixed charges are inside the average, so it is not a per-plan rate.
- It does not adjust for how many kWh households use. A state can have a flat price and a rising bill if use grows; the bill and income page covers that.
- 2025 is preliminary in the EIA files.
Sources and dates
| Source | Period | Retrieved | Used for |
|---|---|---|---|
| EIA, Average Price by State by Provider, 1990-2020 | 2001 to 2009 (residential, Total Electric Industry) | 5 Oct 2026 | State home price, early years |
| EIA-861 annual survey and EIA retail sales | 2010 to 2025; 2025 is a preliminary year | as built on this site | State home price, 2010 on |
| BLS, CPI-U all items, U.S. city average, not seasonally adjusted (CUUR0000SA0) | annual averages 2001 to 2025 | 5 Oct 2026 | Inflation adjustment to 2025 dollars |
The 2010 to 2020 values in the two EIA files agree to within 0.01 cent in every state, so the join in 2010 adds no step. Real price = printed price x CPI of 2025 divided by CPI of the year. How the adjustment works.
Questions
What is CPI-U?
The Consumer Price Index for All Urban Consumers, published by the Bureau of Labor Statistics. We use the U.S. city average for all items, not seasonally adjusted, as an annual average.
Why 2025 dollars?
2025 is the latest year with a full set of state prices. Restating older prices in 2025 dollars lets you compare them directly with today's.
Can I use a different base year?
Yes: divide any real price by its 2025 factor and multiply by the factor of the year you prefer. The CSV carries the CPI and both prices so you can do it in a spreadsheet.
Does the calculator forecast my bill?
No. It multiplies a price by a monthly use and, for the future line, extends a yearly rate that you set. That rate starts at the place's own 2015 to 2025 sticker-price trend.