Tennessee electricity rates
As of May 2026, the average residential electricity rate in Tennessee is 14.47 cents per kilowatt-hour, 21.5% below the U.S. average of 18.44¢. That is the 40th highest rate of the 50 states and the District of Columbia.
- Year over year
- ▲ +5.4% from 13.73¢ in May 2025
- Vs. U.S. average
- -21.5% U.S. average 18.44¢
- National rank
- #40 of 51 · #12 cheapest
- Supply market
- TVA Regulated monopoly
Why Tennessee pays what it pays
Every electricity customer in Tennessee is ultimately supplied by the Tennessee Valley Authority. TVA is a federal corporation that generates power and sells it wholesale to local distributors, and its portfolio of a large nuclear fleet, the Tennessee River hydro system, gas and a shrinking coal fleet produces a low and remarkably stable wholesale price.
TVA is self-financing rather than shareholder-owned, so there is no return on equity in the price, and it is not rate-regulated by a state commission or by FERC in the way an investor-owned utility would be. Its board sets rates.
What varies within Tennessee is the local distributor's markup, which covers poles, wires, meters and local operations. That is why Memphis, Nashville and Chattanooga bills differ despite an identical wholesale source.
How Tennessee compares
Tennessee ranks #40 of 51 jurisdictions by residential price, making it the 12th cheapest. Within the East South Central division, no state is 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 Tennessee 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 Tennessee 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 Tennessee
Local power companies distribute TVA power: Nashville Electric Service, Memphis Light Gas and Water, EPB in Chattanooga, Knoxville Utilities Board and roughly a hundred and fifty others, most of them municipal or co-operative.
There is no retail choice and no state rate regulation of TVA. Distributor rates are set by local boards under contracts with TVA.
What you can actually do about it
TVA publishes its wholesale rate changes in advance and most distributors pass them through directly, so the federal announcement is the real early warning for a Tennessee bill.
Several Tennessee distributors, EPB most prominently, offer time-of-use options and demand-response programmes with genuine savings. They are opt-in and lightly advertised.
Closest states by price
These jurisdictions charge within a fraction of a cent of Tennessee, which is useful if you are comparing a move or a multi-state operating cost.
Tennessee electricity rates: common questions
What is the average electricity rate in Tennessee?
The average residential electricity rate in Tennessee is 14.47 cents per kilowatt-hour as of May 2026, according to the U.S. Energy Information Administration. That is -21.5% relative to the national average of 18.44¢/kWh.
How much is a typical monthly electric bill in Tennessee?
At the May 2026 average rate of 14.47¢/kWh, a household using 900 kWh a month would pay about $130, and one using 1,500 kWh about $217. Actual bills vary with usage, rate schedule, fixed customer charges and taxes.
Have electricity rates in Tennessee gone up?
Tennessee rates rose 5.4% over the year to May 2026, from 13.73¢ in May 2025 to 14.47¢.
Can I choose my electricity supplier in Tennessee?
Regulated monopoly. Tennessee households buy both supply and delivery from their local regulated utility or co-operative; there is no competitive residential supplier market.
Where does this Tennessee 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.