Indiana electricity rates
As of May 2026, the average residential electricity rate in Indiana is 18.15 cents per kilowatt-hour, 1.6% below the U.S. average of 18.44¢. That is the 20th highest rate of the 50 states and the District of Columbia.
- Year over year
- ▲ +7.4% from 16.90¢ in May 2025
- Vs. U.S. average
- -1.6% U.S. average 18.44¢
- National rank
- #20 of 51 · #32 cheapest
- Supply market
- MISO / PJM Regulated monopoly
Why Indiana pays what it pays
For decades Indiana had among the lowest industrial and residential rates in the country, built on mine-mouth coal generation. That fleet is being retired, some units on economics and some on environmental compliance, and the replacement is a mix of gas, wind, solar and storage that requires new capital rather than fuel from next door.
Utilities have been filing regular rate cases to recover that capital, and Indiana's regulatory framework includes trackers that let certain investments recover between cases. The result is a rate that has been climbing steadily rather than in single large steps.
Indiana also has a large industrial load in steel, refining and manufacturing, which historically helped spread fixed costs across a big base. As some of that load has flattened, more of the fixed cost sits with everyone else.
How Indiana compares
Indiana ranks #20 of 51 jurisdictions by residential price, making it the 32nd cheapest. Within the East North Central division, no state is cheaper.
| State | ¢/kWh | YoY | Rank |
|---|---|---|---|
| Indiana | 18.15 | +7.4% | #20 |
| Ohio | 19.52 | +14.2% | #18 |
| Wisconsin | 19.74 | +4.2% | #17 |
| Michigan | 22.01 | +8.8% | #14 |
| Illinois | 23.85 | +28.4% | #12 |
Source: U.S. Energy Information Administration, Electric Power Monthly, Table 5.6.A: Average Price of Electricity to Ultimate Customers by End-Use Sector, by State. Data period May 2026. Retrieved 2026-08-19.
What a bill looks like at this rate
The figures below apply the May 2026 Indiana average to four usage levels. They are arithmetic, not quotes. A real bill also carries fixed customer charges, taxes and any rider specific to your utility.
Estimate your Indiana bill
Multiply your own usage by the May 2026 state average. Enter the kilowatt-hours from your last statement. This is a supply-and-delivery blended average, not a utility quote.
Rate used: …. U.S. average 18.44¢/kWh, May 2026. Source: U.S. Energy Information Administration, Electric Power Monthly Table 5.6.A.
Who sells electricity in Indiana
AES Indiana serves Indianapolis, Duke Energy Indiana covers a large central and southern territory, NIPSCO serves the northwest, Indiana Michigan Power the northeast, and CenterPoint Energy Indiana South the southwest. Rural electric membership corporations cover much of the countryside.
There is no residential retail choice in Indiana. Utilities are vertically integrated and rates are set by the Indiana Utility Regulatory Commission.
What you can actually do about it
Rate-case filings are the thing to watch. Indiana's commission publishes proposed increases well before they take effect, and the consumer counselor's office files public analyses that are readable and specific about which cost is driving which increase.
Several Indiana utilities offer optional time-of-use and EV-specific rates. They are not the default and have to be requested.
Closest states by price
These jurisdictions charge within a fraction of a cent of Indiana, which is useful if you are comparing a move or a multi-state operating cost.
Indiana electricity rates: common questions
What is the average electricity rate in Indiana?
The average residential electricity rate in Indiana is 18.15 cents per kilowatt-hour as of May 2026, according to the U.S. Energy Information Administration. That is -1.6% relative to the national average of 18.44¢/kWh.
How much is a typical monthly electric bill in Indiana?
At the May 2026 average rate of 18.15¢/kWh, a household using 900 kWh a month would pay about $163, and one using 1,500 kWh about $272. Actual bills vary with usage, rate schedule, fixed customer charges and taxes.
Have electricity rates in Indiana gone up?
Indiana rates rose 7.4% over the year to May 2026, from 16.90¢ in May 2025 to 18.15¢.
Can I choose my electricity supplier in Indiana?
Regulated monopoly. Indiana households buy both supply and delivery from their local regulated utility or co-operative; there is no competitive residential supplier market.
Where does this Indiana rate figure come from?
It is the residential-sector average revenue per kilowatt-hour reported by utilities to the U.S. Energy Information Administration on Form EIA-861M and published in the Electric Power Monthly, Table 5.6.A. It blends supply and delivery across every residential customer in the state, so it is a statewide average rather than a quote for any individual household.