Report: La. has least affordable electricity nationwide
17th February 2025 · 0 Comments
By Fritz Esker
Contributing Writer
A recent report by Home Energy Club found that Louisiana had the least affordable electricity in the country.
The report measured electricity costs against local median income. The average U.S. electricity bill is $137 per month. Hawaii has the highest average monthly energy bill at $213 and Utah has the lowest at $85. But Louisiana residents spend 3.45 percent of their median household income on energy, making it the least affordable in the country. Utah had the most affordable with residents spending 1.09 percent of their median household income on energy bills.
Southern states in general fared poorly in the report. Alabama was the 2nd least affordable, spending 3.37 percent of their median household income on energy. Mississippi was the 3rd least affordable at 3.35 percent.
The study noted that U.S. electricity prices remained stable from 2014-2020 with only a five-percent increase during that period. However, costs jumped 21.5 percent from 2020-2023. Prices increased largely due to a rise in natural gas prices in 2022 and a 13.7 percent inflation rate among electricity services in 2022. Weather events and natural disasters like Louisiana endured in the 2020s also play a role. They cause grid stress and infrastructure damage, which lead to higher maintenance costs and higher bills for customers.
Nathan Schluter, content manager at Home Energy Club, said energy rates per kilowatt of usage in Louisiana are competitive compared to the rest of the country. However, he said the usage rates are much higher. The long, hot summers are a major reason why. He also said Louisiana’s regulated energy market results in higher rates than Texas’ deregulated market. Texas customers can compare energy companies and choose a different one if they do not like their existing provider. New Orleanians, however, have to deal with Entergy.
Melanie Spencer lived in New Orleans for many years before recently moving to southwestern Florida for a year. She returned to New Orleans last year. She said she now uses even billing with Entergy and averages $111-123 for a five bedroom apartment in Broadmoor. In Southwestern Florida, which has a very similar climate to New Orleans, her bills ranged from $58 to $72 for a five bedroom apartment. When she lived in a shotgun in Uptown prior to her move to Florida, Spencer said the energy bills averaged about $200 a month.
Richard Pinney moved from New Orleans to Colorado in 2019. He said he usually paid anywhere from $100-200 in energy bills in Mid-City. In Colorado, he said he pays about $30 a month now. He said one thing that helps him keep energy bills low in Colorado is owning a wood-burning stove. When the weather gets cold, he uses that and is able to rely less on his heater. Colorado’s summers being significantly shorter and less oppressively humid help, too. Colorado ranked as the 3rd most affordable state for energy in the Home Energy Club report.
Evan Landry moved from New Orleans to North Carolina in 2022. He said he has not noticed much of a difference in his energy bills since moving, but noted that his North Carolina home has higher ceilings and larger windows than his home in New Orleans. He added that the disparity in his car insurance and internet bills since moving to North Carolina was much more noticeable than anything in his energy bill.
According to Zip Recruiter, the average salary in Colorado is $56,726 per year. The average salary in Florida is $49,261 per year. The average salary in North Carolina is $52,948 per year. The average salary in Louisiana is $52,284 per year.
What can customers do? The report cited many energy-saving tips.
Solar panels will help a home consume less grid energy. They typically last over 25 years, and the energy savings from the panels usually pay for their installation within 6-10 years. However, Schluter noted that solar panels typically cost $20,000-$40,000 to install and this can be beyond the reach of many homeowners.
In a place like New Orleans with sweltering summers, upgrading AC units is also a good idea. Air conditioning accounts for 22 percent of typical U.S. home electricity use according to the U.S. Energy Information Administration. Installing a modern ENERGY STAR-certified unit can save homeowners money. Other ENERGY STAR-certified appliances like refrigerators and washers & dryers can help as well. They can reduce electricity consumption by 10-50 percent.
Replacing appliances may not be as expensive as installing solar panels, but they are still expensive. Schluter said there are a number of smaller things people can do to mitigate costs. Using LED bulbs with ENERGY STAR certification can reduce lighting costs by over 25 percent compared to fluorescent lamps and over 80 percent compared to incandescent or halogen bulbs. He also said people should remember to turn off lights when they are not in a room and unplug devices that are not in use, such as toasters, coffee makers and gaming systems.
“It may seem small but all of those things do add up,” Schluter said.
In a place like New Orleans with older houses, improving home insulation can make a big difference as well. Sealing air leaks around windows, doors and other openings can prevent temperature loss and reduce heating and cooling costs by 15 percent.
“Louisiana homes are outdated in terms of energy efficiency updates,” Schluter said.
A spokesperson from City Councilman J.P. Morrell, chair of the council’s Utility, Cable, Telecommunications, and Technology Committee, said they did not have the capacity to respond to a request for comment due to two city council meetings last week. Councilmember Helena Moreno’s office and Entergy both did not respond to requests for comment as of press time.
This article originally published in the February 17, 2025 print edition of The Louisiana Weekly newspaper.
