Which state has the most expensive utilities? Florida ranks low, despite long, hot summers

Lianna Norman, USA TODAY NETWORK - Florida
·3 min read

Last summer brought record-breaking heat across the country and this summer is anticipated to be even hotter. And as your air conditioning unit gets a workout for a few months, your wallet might feel it too.

But spending more on energy in the summer months doesn't necessarily equate to spending more on energy throughout the year. The energy Floridians save in the winter months (compared to northern states) makes Florida one of the most affordable states for energy costs.

WalletHub just released a study ranking all 50 states by how much they pay for energy sources. The study surprisingly revealed that Floridians are saving more than most states when it comes to year-round energy costs – despite consistently being one of the hottest states each summer.

Here’s which states residents pay the most for utilities year-round and where Florida ranked on WalletHub’s list of the states with the highest and lowest energy costs.

Which state has the most expensive utilities?

To find the states with the highest and lowest cost of energy consumption, WalletHub compared the average monthly energy bills in each state using the following equation:

  • (Average monthly Consumption of Electricity x Average Retail Price of Electricity) + (Average Monthly Consumption of Natural Gas x Average Residential Price of Natural Gas) + (Average Monthly Consumption of Home Heating Oil x Average Residential Price of Home Heating Oil) + (Average Motor-Fuel Price x (Miles Traveled/Average Motor-Fuel Consumption/Number of Drivers in the State)) = Average Monthly Energy Bill in the State

  • The data WalletHub used for this equation came from: The U.S. Census Bureau, U.S. Energy Information Administration, Federal Highway Administration, American Automobile Association, National Highway Traffic Safety Administration, and the United States Environmental Protection Agency.

According to WalletHub’s study, the state where energy bills cost the most each year is Wyoming, where residents’ average monthly energy bill hits a whopping $1,591 during winter months.

“This is due in part to the fact that Wyoming has the highest gas consumption per capita and the highest residential oil consumption per capita. Coupled with relatively high prices for heating oil and natural gas, this makes Wyoming a particularly costly state,” WalletHub’s study said.

“Considering Wyoming’s extremely cold winters, however, this isn’t too much of a surprise.”

North Dakota and Iowa took second and third places on the list of states where residents pay the most for energy consumption throughout the year.

Florida ranked at the bottom of the list (which is a good thing), placing as the state with the seventh-lowest average yearly energy costs.

Here are WalletHub’s top 10 states where the cost of energy consumption is the highest:

  1. Wyoming

  2. North Dakota

  3. Iowa

  4. Montana

  5. Minnesota

  6. Massachusetts

  7. Connecticut

  8. Alaska

  9. South Dakota

  10. Virginia

Here are WalletHub’s top 10 states where the cost of energy consumption is the lowest:

  1. New Mexico

  2. Arizona

  3. Kansas

  4. Texas

  5. Nebraska

  6. Mississippi

  7. Florida

  8. Colorado

  9. Louisiana

  10. California

What is the average electric bill in Florida?

Even though Floridians rely on air conditioning for relief in the long, sweltering summer months, most Florida residents have a cheaper average electric bill price than the average energy costs of 43 other states.

According to WalletHub’s study, the average monthly electric bill in Florida costs around $462 – that’s almost $1,000 cheaper than the most expensive state’s monthly bill.

Here’s a quick look at how Florida ranked in WalletHub’s individual categories:

  • 22nd – Price of electricity

  • 49th – Natural-gas consumption per consumer

  • 31st – Motor-fuel consumption per driver

  • 44th – Home heating-oil consumption per consumer

Is FPL lowering rates?

And for some Floridians, energy costs got even cheaper this year. Florida Power & Light Company (FPL), which provides utilities for more than 12 million people, reduced rates during April and May. This rate reduction brought residential customers’ bills down around $14 cheaper than when the year started.

This article originally appeared on Florida Today: Florida AC, energy costs rank low in list despite summer heat