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ElectricityRatePerKWh

Electricity Rate in Indiana (2026): 18.15c/kWh Average

The EIA residential electricity price in Indiana is 18.15 cents per kWh as of May 2026, 0.29c below the US average of 18.44c/kWh. The Indiana commercial rate is 13.88c/kWh and the industrial rate is 9.08c/kWh (EIA Electric Power Monthly, Table 5.6.A).

Residential Rate
18.15¢
per kWh
vs US Avg
-2%
0.29c below
Avg Monthly Bill
$154
950 kWh
Provider Choice
No
Regulated monopoly

Indiana Electricity Rate: What You Need to Know

Indiana electricity averages 18.15 cents per kWh for residential customers as of May 2026, according to the EIA Electric Power Monthly. This is 0.29c below the US average of 18.44c/kWh. The average monthly bill for Indiana households is $154 based on typical usage of 950 kWh.

Indiana's 18.15c/kWh rate (May 2026) is below the US average of 18.44c, but Hoosier bills have risen sharply - statewide residential bills jumped about 17.5% in a single year - and rate increases have become a major political issue, with the governor and lawmakers pressing the Indiana Utility Regulatory Commission for relief. Five regulated utilities divide the state: Duke Energy Indiana (the largest), AES Indiana (Indianapolis, formerly IPL), CenterPoint Energy Indiana (the southwest, formerly Vectren), NIPSCO (the northwest), and Indiana Michigan Power (an AEP company). Indiana is essentially a regulated market with no residential retail choice - the lone exception is Indiana Michigan Power's territory, the only part of the state where households can currently shop for a competitive supplier, though 2026 legislation aims to extend choice statewide. The increases trace to a coal-to-gas transition colliding with explosive data-center demand: roughly 9 GW of coal capacity is scheduled to retire through 2038 (Duke pushed its Gibson plant retirement from 2035 to 2038) while proposed data centers could need 9.7 GW, more than the retiring coal. NIPSCO's residential bills alone rose about 26.7% in 2025 after a 17.8% increase in 2024.

Generation mix: Coal 42%, natural gas 39%, wind 11%, solar and biomass 4%. The fuel mix is a primary driver of electricity rates - states with abundant hydro or nuclear tend to have lower rates, while states dependent on imported petroleum (Hawaii) or natural gas pay more.

Year-over-year change: Indiana rates rose 7.4% year-over-year as of May 2026. This compares to the US average increase of 6.2% over the same period.

Regulated: You Cannot Switch Electricity Suppliers

Duke Energy Indiana / AEP Indiana operates as the regulated utility in Indiana. Retail electricity choice is not available for residential customers. Options for reducing your bill include: time-of-use rate optimization, energy efficiency upgrades, and rooftop solar.

Your Indiana Electricity Bill Components

Energy charge (950 kWh x 18.15c)$172.42
Fixed customer charge (estimated)~$10.00
Estimated monthly total$182.42
Indiana Rate by Sector - May 2026
Residential (US 18.44c)18.15c
Commercial (US 13.54c)13.88c
Industrial (US 8.71c)9.08c
Source: EIA Electric Power Monthly, Table 5.6.A.
Dominant Utility
Duke Energy Indiana / AEP Indiana
Adjacent States
Ohio19.52c
Illinois23.85c
Michigan22.01c
Kentucky14.98c
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Indiana Electricity: Frequently Asked Questions

What is the electricity rate in Indiana in 2026?+
The average residential electricity rate in Indiana is 18.15 cents per kWh as of May 2026, according to the EIA Electric Power Monthly. This is 0.29c below the US average of 18.44c/kWh (-2%). The average monthly electricity bill in Indiana is approximately $154 based on 950 kWh typical monthly usage.
What is the commercial electricity rate in Indiana?+
The average commercial electricity rate in Indiana is 13.88 cents per kWh as of May 2026, according to the EIA Electric Power Monthly (Table 5.6.A). That compares with the US commercial average of 13.54c/kWh. Commercial rates apply to businesses, offices, schools, and retail. They are usually lower per kWh than residential rates, but a commercial bill can still be much larger because of higher volume and demand charges.
What is the industrial electricity rate in Indiana?+
The average industrial electricity rate in Indiana is 9.08 cents per kWh as of May 2026, according to the EIA Electric Power Monthly (Table 5.6.A), versus a US industrial average of 8.71c/kWh. Industrial customers such as factories, manufacturers, and large facilities pay the lowest per-kWh price of the three EIA sectors because they buy power at high volume, often at higher voltage, under demand-based rate structures.
Can I switch electricity providers in Indiana?+
No - Indiana operates a regulated electricity market. Duke Energy Indiana / AEP Indiana serves as the regulated monopoly utility. Customers cannot switch electricity generation suppliers. Options for reducing bills include time-of-use rate optimization (where available), energy efficiency upgrades, and solar installation.
What is the average monthly electricity bill in Indiana?+
The average Indiana household uses approximately 950 kWh per month. At 18.15c/kWh plus approximately $10 in fixed charges, the average monthly bill is $154. This varies by season (higher in summer for cooling-dominant states like Florida, higher in winter for heating-dominant states).
What is the primary electricity source in Indiana?+
Indiana's generation mix is primarily Coal 42%, natural gas 39%, wind 11%, solar and biomass 4%. This fuel mix is a key factor in the state's electricity rate - states relying on hydro or nuclear typically have lower rates, while states heavily dependent on natural gas or petroleum (like Hawaii) face higher costs.
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