Co-ops, city utilities and investor-owned utilities: who charges less?
In 2025, homes served by electric cooperatives paid an average of 14.10¢ per kWh, homes on public power 14.49¢ per kWh and customers of investor-owned utilities 17.78¢ per kWh1. Most of that gap is geography: compared inside the same state it narrows, and in South Carolina, Kentucky and Oklahoma co-op members paid more per kWh than investor-owned customers. A lower price per kWh does not always mean a lower bill either.
Published November 14, 2026.
Every home in the United States gets its power from one of three kinds of distribution utility. EIA's definitions are short: investor-owned utilities "issue stock owned by shareholders"; cooperatives "are not-for-profit member-owned utilities"; publicly owned utilities "include federal-, state-, and municipal-run utilities", a group that also covers public utility districts. Which one serves you depends only on your address, so the useful question is not which type to pick but what each type's customers actually paid, and how much of the difference is about ownership at all.
The national averages for 2025
EIA's annual survey of every utility (Form EIA-861, final 2025 data released October 7, 2026) gives the totals. Each figure below is average revenue per kWh: what full-service residential customers paid in total, fixed charges and fuel adjustments included, divided by the kWh they used. It is not a tariff rate.
- Investor-owned utilities: 17.78¢ per kWh, across 81,897,613 residential customers.
- Electric cooperatives: 14.10¢ per kWh, across 18,637,750 customers.
- Public power: 14.49¢ per kWh, across 18,508,1581 customers.
Source: EIA-861 annual electric power industry report, 2025 final. Bundled (full-service) residential revenue divided by kWh, summed over every utility of each type (EIA-861 2025). Small utilities filing the short form report no residential split and are not included.
Show the numbers
| Type | ¢/kWh | Residential customers |
|---|---|---|
| Investor-owned utilities | 17.78¢ | 81,897,613 |
| Electric cooperatives | 14.10¢ | 18,637,750 |
| Public power (municipal, districts, state) | 14.49¢ | 18,508,158 |
Investor-owned utilities serve far more homes than the other two types combined, so they set the national average for residential electricity (17.23¢ per kWh2 in 2025). Co-ops and public power averaged close to each other and well below it.
Why the national gap overstates the difference
The three types do not serve the same places. EIA notes that investor-owned utilities "are most prevalent in heavily populated areas on the East and West coasts", while "co-ops are still most prevalent in rural areas today". The coastal states with the highest prices are investor-owned territory, and that pulls the investor-owned average up regardless of how any single utility is run.
California shows the effect at its largest. Its investor-owned utilities averaged 33.91¢ per kWh in 2025 across 5,389,278 customers, while its public power systems averaged 22.74¢ per kWh. New York, New Jersey, Connecticut and Massachusetts have no co-op averages at all in EIA's data, so their high investor-owned prices (26.95¢ per kWh in New York, 28.80¢ per kWh1 in Massachusetts) count against investor-owned utilities with nothing on the co-op side to balance them.
The ranking of large utilities (100,000 or more residential customers) shows the same split. The highest 2025 averages belonged to SDG&E (California) (45.77¢ per kWh), Hawaiian Electric (Hawaii) (40.54¢ per kWh) and PG&E (California) (37.52¢ per kWh1). The cheapest of the 177 were mostly co-ops and public power, but not only: the Type column below lists an investor-owned utility among them.
| 1 | Magic Valley Electric Cooperative | Texas | Cooperative | 10.51¢ | $140.46 | 1,336 | 129,596 |
|---|---|---|---|---|---|---|---|
| 2 | Clark Public Utilities | Washington | Public power district | 10.63¢ | $104.50 | 983 | 223,119 |
| 3 | Lincoln Electric System | Nebraska | Municipal | 11.15¢ | $93.59 | 839 | 136,859 |
| 4 | MidAmerican Energy | Iowa | Investor-owned | 11.21¢ | $92.85 | 828 | 639,558 |
| 5 | Tacoma Public Utilities | Washington | Municipal | 11.45¢ | $105.14 | 919 | 177,554 |
| 6 | Cobb EMC | Georgia | Cooperative | 11.55¢ | $128.80 | 1,115 | 203,131 |
| 7 | SLEMCO | Louisiana | Cooperative | 11.57¢ | $162.40 | 1,404 | 109,628 |
| 8 | Bluebonnet Electric Cooperative | Texas | Cooperative | 11.59¢ | $144.15 | 1,244 | 119,030 |
| 9 | EnergyUnited | North Carolina | Cooperative | 11.61¢ | $141.14 | 1,215 | 124,446 |
| 10 | City Utilities of Springfield | Missouri | Municipal | 11.65¢ | $100.80 | 866 | 105,859 |
| 11 | Lakeland Electric | Florida | Municipal | 11.73¢ | $136.09 | 1,160 | 122,506 |
| 12 | Idaho Power | Idaho | Investor-owned | 11.78¢ | $105.89 | 899 | 540,032 |
| 13 | Avista | Idaho | Investor-owned | 11.84¢ | $106.63 | 900 | 129,181 |
| 14 | Jackson EMC | Georgia | Cooperative | 11.87¢ | $143.77 | 1,211 | 245,849 |
| 15 | Entergy Louisiana | Louisiana | Investor-owned | 11.90¢ | $146.76 | 1,233 | 961,871 |
Source: EIA-861 annual electric power industry report, 2025 final. Bundled (full-service) residential customers, EIA-861 2025 final: revenue divided by kWh, all charges included. In retail-choice states only default-service customers are included; Texas delivery utilities have no bundled price and are not ranked.
Inside one state, the order changes
Comparing types within a state removes most of the geography, and the clear national order breaks down.
Where co-ops averaged more than investor-owned utilities. In South Carolina, co-op members paid 15.96¢ per kWh in 2025 and investor-owned customers 14.96¢ per kWh; the state-run Santee Cooper averaged 12.91¢ per kWh, the lowest of the large utilities there. Kentucky co-ops averaged 13.60¢ per kWh against 12.83¢ per kWh, Oklahoma co-ops 13.41¢ per kWh against 13.21¢ per kWh, and Arkansas co-ops 13.57¢ per kWh against 13.09¢ per kWh. Alaska has the widest gap in this direction: its co-ops, which serve most of the state's customers (247,933), averaged 27.15¢ per kWh, against 17.80¢ per kWh1 for its small investor-owned segment.
Source: EIA-861 annual electric power industry report, 2025 final. Bundled (full-service) residential revenue divided by kWh, summed over every utility of each type (EIA-861 2025). Small utilities filing the short form report no residential split and are not included.
Show the numbers
| Type | ¢/kWh | Residential customers |
|---|---|---|
| Investor-owned utilities | 14.96¢ | 1,443,586 |
| Electric cooperatives | 15.96¢ | 806,913 |
| Public power (municipal, districts, state) | 12.90¢ | 303,515 |
Where co-ops averaged far less. In the Northwest and the Mountain West the gap runs the other way and is wide. Washington co-ops averaged 10.68¢ per kWh in 2025 and its public power 11.06¢ per kWh, against 16.24¢ per kWh for investor-owned utilities. Wyoming co-ops averaged 9.86¢ per kWh against 15.19¢ per kWh, Utah co-ops 9.70¢ per kWh against 13.52¢ per kWh, and Oregon co-ops 11.71¢ per kWh against 17.15¢ per kWh1.
Source: EIA-861 annual electric power industry report, 2025 final. Bundled (full-service) residential revenue divided by kWh, summed over every utility of each type (EIA-861 2025). Small utilities filing the short form report no residential split and are not included.
Show the numbers
| Type | ¢/kWh | Residential customers |
|---|---|---|
| Investor-owned utilities | 16.24¢ | 1,466,495 |
| Electric cooperatives | 10.68¢ | 150,169 |
| Public power (municipal, districts, state) | 11.06¢ | 1,728,859 |
Where it hardly matters. In North Carolina, co-ops (14.13¢ per kWh) and investor-owned utilities (14.11¢ per kWh) averaged almost the same in 2025. Missouri's three types were within a fraction of a cent: 13.24¢ per kWh, 13.28¢ per kWh and 13.32¢ per kWh. Iowa's co-ops (13.61¢ per kWh) and investor-owned utilities (13.64¢ per kWh1) were equally close.
Public power averaged the least of the three types in most states, but not everywhere. Tennessee, where city utilities and co-ops serve almost all homes, is the clearest exception: public power averaged 13.27¢ per kWh and co-ops 13.17¢ per kWh in 2025, while its few investor-owned customers (43,365) paid 12.28¢ per kWh. In Kansas, public power (14.30¢ per kWh) sat between investor-owned utilities (14.13¢ per kWh) and co-ops (14.54¢ per kWh1).
A lower price per kWh is not always a lower bill
The averages above are prices. A bill is price multiplied by use, and in several states co-op homes used more electricity than homes on a city or investor-owned system nearby. Pairs of large utilities serving the same state in 2025:
- North Carolina. EnergyUnited members paid 11.61¢ per kWh, less than Duke Energy Carolinas customers (13.41¢ per kWh). But they used 1,215 kWh a month against 996 kWh, so the average EnergyUnited bill ($141.14) was higher than Duke's ($133.63).
- Tennessee. Middle Tennessee Electric, a co-op, averaged 12.47¢ per kWh against 14.04¢ per kWh at the city-owned Nashville Electric Service. With 1,295 kWh a month against 1,040 kWh, the co-op bill averaged $161.57 and the city utility's $146.00.
- Georgia. Jackson EMC members paid 11.87¢ per kWh and used 1,211 kWh; Georgia Power customers paid 16.28¢ per kWh and used 990 kWh. Here the price gap was large enough that the co-op bill ($143.77) stayed below Georgia Power's ($161.13).
- Washington. Seattle City Light averaged 14.74¢ per kWh, less than Puget Sound Energy at 17.01¢ per kWh, and its homes used only 594 kWh a month against 863 kWh: an average bill of $87.48 against $146.741.
Source: EIA-861 annual electric power industry report, 2025 final. EIA-861 2025 final. Average revenue per kWh is all charges divided by kWh; it is not a tariff rate.
Show the numbers
| Utility | average monthly residential bill |
|---|---|
| EnergyUnited (NC) | $141.14 |
| Duke Energy Carolinas (NC) | $133.63 |
| Middle Tennessee Electric (TN) | $161.57 |
| Nashville Electric Service (TN) | $146.00 |
| Jackson EMC (GA) | $143.77 |
| Georgia Power (GA) | $161.13 |
| Seattle City Light (WA) | $87.48 |
| Puget Sound Energy (WA) | $146.74 |
Part of the difference in a price per kWh is itself a matter of use: a fixed monthly customer charge spread over more kWh lowers the average price without lowering the bill. For a household comparing two addresses, the bill and the kWh behind it are the better guide.
What the investor-owned average covers in retail-choice states
In states with retail choice, an investor-owned utility's bundled average includes only customers who buy supply from the utility (default service). Customers who chose a competitive supplier pay the utility for delivery and the supplier for energy, and they are in none of the figures on this page. Texas is the extreme case: 55.5% of its residential customers were served by retail providers in 2025, so the state's investor-owned average (13.70¢ per kWh) covers only the 1,170,218 customers of investor-owned utilities outside the competitive market, such as Entergy Texas and El Paso Electric. Texas co-ops (13.17¢ per kWh, 2,498,461 customers) and city utilities (12.63¢ per kWh1) are mostly outside the competitive market too. In Pennsylvania, Ohio, Maryland or New York the investor-owned average is likewise a default-service average, not what every customer of those utilities paid.
Checking your own utility
Ownership type is a weak predictor on its own; the utility is what matters. Each utility page on this site compares the utility with its state and with the national average for its type. Cobb EMC, for instance, averaged 18.1% below the national average for electric cooperatives in 2025, and Seattle City Light 1.7% above the national average for public power1. To find which utilities serve an area, start from your state's page or the list of utilities; the utility's own service-area map decides for a specific address.
Method
Prices are EIA-861 2025 final data: residential revenue divided by residential kWh for full-service (bundled) customers, summed over every utility of each type in the United States or in a state. Public power combines municipal utilities, public power districts and state authorities; federal power agencies sell mostly wholesale and serve few homes directly. Utilities that file EIA's short form report no residential split and are not included in the type averages. Bills and kWh per home are averages per residential account for each utility. State comparisons use the types present in each state; a type with very few customers in a state (Tennessee's investor-owned segment, California's co-ops) can sit far from the rest. Revenue per kWh includes fixed charges, fuel and other riders and excludes most taxes, so it is not the rate printed in any tariff.
Co-ops, public power and investor-owned utilities: questions
Are electric co-ops cheaper than investor-owned utilities?
On national averages, yes: co-op homes paid 14.10¢ per kWh in 2025 against 17.78¢ per kWh for investor-owned utilities. Within a state the answer varies. In South Carolina co-ops averaged 15.96¢ per kWh and investor-owned utilities 14.96¢ per kWh; in Washington co-ops averaged 10.68¢ per kWh and investor-owned utilities 16.24¢ per kWh1.
Are municipal electric utilities cheaper?
Public power (city utilities, public utility districts and state authorities) averaged 14.49¢ per kWh1 for residential customers in 2025, below investor-owned utilities nationally and below them in most states. Tennessee, Kansas and Missouri were exceptions where public power did not average less.
Can I switch from an investor-owned utility to a co-op?
No. The utility that owns the wires at an address is fixed by its service territory, whatever its ownership. In retail-choice states some customers can buy supply from a competitive supplier, but delivery stays with the local utility.
More insights
Sources
- EIA-861 annual electric power industry report, 2025 final; table Sales_Ult_Cust_2025; 2025, final; released October 7, 2026. www.eia.gov
- EIA, Historical state data, annual sales, revenue and customers; table HS861 2010-.xlsx; 2010-2025, final; released October 7, 2026. www.eia.gov
How every figure is built: methodology. Found an error? Write to [email protected]; corrections are listed on the updates page.