Electricity Rate in Montana (2026): 14.67c/kWh Average

Montana electricity averages 14.67 cents per kWh for residential customers as of May 2026, according to the EIA Electric Power Monthly. This is 3.77c below the US average of 18.44c/kWh. The average monthly bill for Montana households is $110 based on typical usage of 847 kWh.

Montana's 14.67c/kWh rate (May 2026) sits below the US average of 18.44c, and its grid still leans on Colstrip coal - coal supplies roughly 37% of in-state generation, hydropower from the Missouri and Clark Fork river dams about 33%, wind around 22%, and natural gas only about 4%. Although Montana partially restructured its electricity market in the late 1990s, retail competition for households effectively collapsed, so in practice residential customers buy from their assigned regulated utility. NorthWestern Energy is by far the largest, serving most of the populated center and west of the state under the oversight of the Montana Public Service Commission; Montana-Dakota Utilities serves the east and a network of cooperatives covers rural areas. Rates have jumped sharply: NorthWestern self-implemented a 17% interim electric increase in May 2025, and in December 2025 the PSC issued a final decision permanently raising residential base rates about 17% - roughly a 12% increase to the typical residential bill - effective February 1, 2026. The decision also began folding roughly $246 million for NorthWestern's new 175-MW natural gas plant near Laurel into customer rates.

Generation mix: Coal 37%, hydro 33%, wind 22%, natural gas 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: Montana rates rose 13.9% year-over-year as of May 2026. This compares to the US average increase of 6.2% over the same period.