Kentucky electricity rates
As of May 2026, the average residential electricity rate in Kentucky is 14.98 cents per kilowatt-hour, 18.8% below the U.S. average of 18.44¢. That is the 36th highest rate of the 50 states and the District of Columbia.
- Year over year
- ▲ +8.2% from 13.85¢ in May 2025
- Vs. U.S. average
- -18.8% U.S. average 18.44¢
- National rank
- #36 of 51 · #16 cheapest
- Supply market
- PJM / MISO / TVA Regulated monopoly
Why Kentucky pays what it pays
Kentucky built part of its economy on cheap coal-fired electricity, and it retains a meaningful piece of that advantage: an old, largely depreciated coal fleet close to the mines, and no clean-energy mandate forcing early retirement.
The advantage is shrinking. Environmental compliance capital, maintenance on ageing units, and the rising cost of coal itself have all pushed costs up, and utilities have filed to retire units and replace them with gas and solar. Kentucky's legislature has made retirements harder by requiring commission approval, which slows the transition without lowering the underlying cost.
Parts of Kentucky sit in PJM and parts are served by TVA, so different corners of the state experienced different pressure over the past year.
How Kentucky compares
Kentucky ranks #36 of 51 jurisdictions by residential price, making it the 16th cheapest. Within the East South Central division, 1 of 3 neighbouring states are cheaper.
| State | ¢/kWh | YoY | Rank |
|---|---|---|---|
| Tennessee | 14.47 | +5.4% | #40 |
| Kentucky | 14.98 | +8.2% | #36 |
| Mississippi | 16.16 | +8.9% | #29 |
| Alabama | 16.77 | +3.8% | #24 |
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 Kentucky 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 Kentucky 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 Kentucky
Louisville Gas and Electric and Kentucky Utilities, both PPL companies, serve the largest share of the state. Kentucky Power, an AEP company, serves the east. Big Rivers Electric and East Kentucky Power Cooperative supply co-operatives, and several communities in the west take power from TVA.
There is no residential retail choice. The Kentucky Public Service Commission sets rates for investor-owned utilities and for the generation and transmission co-operatives.
What you can actually do about it
Electric resistance heating is common in Kentucky and is the most expensive way to heat a home at any rate. A heat pump conversion is usually the single largest saving available.
Kentucky Power's territory in eastern Kentucky has materially higher rates than the state average. A household there should compare against its own utility rather than the statewide figure.
Closest states by price
These jurisdictions charge within a fraction of a cent of Kentucky, which is useful if you are comparing a move or a multi-state operating cost.
Kentucky electricity rates: common questions
What is the average electricity rate in Kentucky?
The average residential electricity rate in Kentucky is 14.98 cents per kilowatt-hour as of May 2026, according to the U.S. Energy Information Administration. That is -18.8% relative to the national average of 18.44¢/kWh.
How much is a typical monthly electric bill in Kentucky?
At the May 2026 average rate of 14.98¢/kWh, a household using 900 kWh a month would pay about $135, and one using 1,500 kWh about $225. Actual bills vary with usage, rate schedule, fixed customer charges and taxes.
Have electricity rates in Kentucky gone up?
Kentucky rates rose 8.2% over the year to May 2026, from 13.85¢ in May 2025 to 14.98¢.
Can I choose my electricity supplier in Kentucky?
Regulated monopoly. Kentucky households buy both supply and delivery from their local regulated utility or co-operative; there is no competitive residential supplier market.
Where does this Kentucky 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.