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ElectricityRatePerKWh

Electricity Rate in Tennessee (2026): 14.07c/kWh Average

The EIA residential electricity price in Tennessee is 14.07 cents per kWh as of June 2026, 4.27c below the US average of 18.34c/kWh. The Tennessee commercial rate is 13.94c/kWh and the industrial rate is 6.87c/kWh (EIA Electric Power Monthly, Table 5.6.A).

Residential Rate
14.07ยข
per kWh
vs US Avg
-23%
4.27c below
Avg Monthly Bill
$159
1205 kWh
Provider Choice
No
Regulated monopoly

Tennessee Electricity Rate: What You Need to Know

Tennessee electricity averages 14.07 cents per kWh for residential customers as of June 2026, according to the EIA Electric Power Monthly. This is 4.27c below the US average of 18.34c/kWh. The average monthly bill for Tennessee households is $159 based on typical usage of 1205 kWh.

Tennessee has some of the cheaper electricity in the country - 14.07c/kWh (June 2026), below the US average - but relatively high bills because households use a lot of it. The state has a one-of-a-kind structure: essentially all of Tennessee's power comes from the Tennessee Valley Authority (TVA), the federal corporation created in 1933, which generates and transmits the electricity and sells it wholesale to roughly 150 local power companies - municipal utilities and rural electric cooperatives such as Nashville Electric Service, Memphis Light Gas and Water, and Knoxville Utilities Board - that handle local distribution. There is no investor-owned utility and no residential retail choice: every local power company buys from TVA at the same wholesale rate and adds its own distribution margin, so rate differences between towns are small. TVA uses a seasonal rate structure, with higher energy charges in summer (June-September) and winter (December-March) than in the transition months. Tennessee's high average usage of 1,205 kWh per month - driven by widespread electric heating plus summer air conditioning - pushes the typical monthly bill to about $159 despite the low per-kWh price. TVA's generation mix is led by nuclear and natural gas, with significant hydro and a declining coal share.

Generation mix: Natural gas 30%, nuclear 35%, hydro 20%, coal 10%. 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: Tennessee rates rose 1.8% year-over-year as of June 2026. This compares to the US average increase of 5% over the same period.

Regulated: You Cannot Switch Electricity Suppliers

TVA (via local co-ops and municipal utilities) operates as the regulated utility in Tennessee. 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 Tennessee Electricity Bill Components

Energy charge (1205 kWh x 14.07c)$169.54
Fixed customer charge (estimated)~$10.00
Estimated monthly total$179.54
Tennessee Rate by Sector - June 2026
Residential (US 18.34c)14.07c
Commercial (US 14.19c)13.94c
Industrial (US 9.17c)6.87c
Source: EIA Electric Power Monthly, Table 5.6.A.
Dominant Utility
TVA (via local co-ops and municipal utilities)
Adjacent States
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Electric Utilities in Tennessee: 88 Listed (2024 EIA-861)

EIA's Form 861 census records 88 entities with 2024 retail electricity sales in Tennessee: 88 distribution utilities filing the full form, 0 small utilities filing the short form (EIA-861S). By ownership: 60 municipal, 25 cooperative, 2 investor owned, 1 federal. The state-wide average realised residential price in 2024 was 12.42 cents per kWh across 3,166,103 residential customers and 43,827,503 MWh of sales; EIA's latest monthly figure is 14.07c (June 2026). The largest utility by residential accounts served (bundled plus delivery-only) is Nashville Electric Service with 417,640 (13.47c per kWh, 11.7% of state residential sales by MWh). 87 of the 88 distribution utilities have a detail page; the rest are listed here only.

Distribution utilities (88), ranked by residential accounts served (bundled + delivery-only), 2024; residential price = bundled service where offered
#UtilityOwnershipRes. accountsResidentialCommercialCounties
1Nashville Electric ServiceMunicipal417,64013.47c12.03c7
2City of Memphis (TN)Municipal380,28612.16c12.01c1
3Middle Tennessee E M CCooperative307,37011.76c11.45c8
4Knoxville Utilities BoardMunicipal193,70712.54c11.91c7
5City of Chattanooga (TN)also GAMunicipal164,41712.32c11.85c6
6Volunteer Electric CoopCooperative104,38712.19c12.65c15
7Cumberland Elec Member CorpCooperative100,58512.99c12.94c6
8City of Clarksville (TN)Municipal75,95312.77c12.11c1
9Johnson City (TN)Municipal72,20512.41c11.37c4
10Duck River Elec Member CorpCooperative71,34212.50c13.36c14
11City of Lenoir (TN)Municipal62,45511.95c11.75c3
12Upper Cumberland E M CCooperative45,56012.77c13.67c9
13Southwest Tennessee E M CCooperative43,75012.90c14.35c9
14Appalachian Electric CoopCooperative43,70912.93c12.93c4
15Kingsport Power CoInvestor Owned43,15912.84c13.81c3
16Sevier County Electric SystemMunicipal35,62611.33c11.65c2
17Sequachee Valley Electric CoopCooperative33,20612.97c12.37c8
18City of Greeneville (TN)Municipal32,38811.90c12.58c1
19City of Jackson (TN)Municipal31,85611.97c11.58c1
20Columbia Power System (TN)Municipal31,16612.00c11.47c2
21City of DicksonMunicipal30,80811.65c12.53c5
22Fort Loudoun Electric CoopCooperative30,52712.11c13.53c3
23Meriwether Lewis Electric CoopCooperative30,31913.68c14.68c5
24Caney Fork Electric Coop, IncCooperative29,63112.89c15.70c8
25City of Bristol (TN)Municipal29,62210.81c12.16c1
26Gibson Electric Members Corpalso KYCooperative29,33113.00c12.83c9
27City of Cleveland (TN)Municipal29,33112.53c11.88c1
28City of Alcoa UtilitiesMunicipal28,18312.21c11.54c1
29City of Clinton (TN)Municipal26,23012.99c13.23c6
30Holston Electric Coop, IncCooperative25,77313.05c14.36c2
31Tri-County Elec Member Corp (TN)also KYCooperative24,82412.33c12.93c7
32City of Elizabethton (TN)Municipal23,34411.82c11.62c4
33City of Gallatin (TN)Municipal23,20411.78c10.56c1
34Powell Valley Electric Coopalso VACooperative21,14711.49c12.66c5
35Maryville UtilitiesMunicipal19,97111.28c11.72c1
36City of LaFolletteMunicipal19,93413.51c11.43c3
37City of Newport (TN)Municipal19,85913.83c14.03c3
38Chickasaw Electric Coop, IncCooperative19,57611.00c11.27c3
39City of LawrenceburgMunicipal18,07612.22c14.10c1
40City of Lexington (TN)Municipal17,96112.04c12.90c4
41Tennessee Valley Electric CoopCooperative16,80412.41c12.69c2
42City of FayettevilleMunicipal16,66711.93c13.18c4
43Pickwick Electric CoopCooperative16,60912.67c14.35c4
44City of Paris (TN)Municipal16,26311.55c12.04c1
45City of Cookeville (TN)Municipal15,94611.29c10.91c1
46City of Oak RidgeMunicipal15,49712.47c12.02c1
47Weakley County Mun Elec SysMunicipal15,31511.29c11.76c3
48Plateau Electric CooperativeCooperative14,33113.21c13.11c2
49City of Morristown (TN)Municipal13,45912.74c11.42c1
50Loudon Utilities BoardMunicipal12,69811.45c11.49c1
51Mountain Electric Coop, Incalso NCCooperative12,53912.34c13.91c3
52City of Pulaski (TN)Municipal12,43213.31c13.42c2
53Carroll County (TN)Municipal12,34411.92c12.13c3
54City of Rockwood (TN)Municipal12,04212.71c13.90c1
55Athens Utility BoardMunicipal11,65111.77c12.82c1
56City of Shelbyville (TN)Municipal9,87711.33c11.57c1
57City of DyersburgMunicipal9,47511.15c11.51c1
58City of Harriman (TN)Municipal9,33513.44c14.83c2
59Tullahoma Board-Public UtilsMunicipal9,27811.18c11.28c3
60City of Dayton (TN)Municipal9,05311.98c12.77c2
61Bolivar Energy AuthorityMunicipal8,92913.50c14.56c2
62Benton CountyMunicipal8,77513.88c15.18c1
63Forked Deer Electric Coop, IncCooperative8,34514.33c19.66c4
64City of Springfield (TN)Municipal7,67511.47c9.50c1
65Town of Erwin (TN)Municipal7,61812.23c13.17c3
66City of SweetwaterMunicipal7,53411.62c12.14c1
67City of Milan (TN)Municipal6,90212.09c12.21c3
68McMinnville Electric SystemMunicipal6,64611.83c12.42c1
69City of Winchester (TN)Municipal5,29211.81c12.02c1
70City of Union CityMunicipal5,20311.31c11.84c1
71City of Ripley (TN)Municipal5,10612.35c13.14c1
72City of Lewisburg (TN)Municipal4,98111.22c11.73c1
73City of EtowahMunicipal4,44313.61c14.48c1
74City of BrownsvilleMunicipal4,06711.43c12.19c1
75City of Covington (TN)Municipal3,72711.11c11.13c1
76City of HumboldtMunicipal3,52911.36c11.15c1
77City of Mt Pleasant (TN)Municipal3,52413.06c13.84c2
78Tri-State Electric Member Corpalso GA, NCCooperative2,81214.03c15.11c1
79City of Smithville (TN)Municipal2,40812.11c12.52c1
80City of SpartaMunicipal2,25811.94c11.90c1
81City of Trenton (TN)Municipal1,95612.88c12.44c1
82City of Jellicoalso KYMunicipal1,62013.06c14.16c1
83City of NewbernMunicipal1,49510.34c10.88c1
84French Broad Elec Member Corpalso NCCooperative99414.91c14.41c2
85South Kentucky Rural E C Calso KYCooperative15213.77c13.86c2
86Cumberland Valley Electric, Inc.also KYCooperative7814.31cn/a2
87Entergy Arkansas LLCalso ARInvestor Owned111.94c18.33c1
88Tennessee Valley Authorityalso AL, KY, MS, NCFederal0n/a6.86c-
Source and method

Source: U.S. Energy Information Administration, Form EIA-861 Annual, 2024 final data (public domain), retrieved 28 August 2026; prices are average realised revenue per kWh, not tariffs. Final 2024 file f8612024.zip (released 3 December 2025) from the EIA-861 detailed data files. Preliminary 2025 figures come from the early-release file f8612025er.zip (4 August 2026), which EIA has not yet validated; they are labelled as such wherever shown and never mixed into a final figure.

Tennessee Electricity: Frequently Asked Questions

What is the electricity rate in Tennessee in 2026?+
The average residential electricity rate in Tennessee is 14.07 cents per kWh as of June 2026, according to the EIA Electric Power Monthly. This is 4.27c below the US average of 18.34c/kWh (-23%). The average monthly electricity bill in Tennessee is approximately $159 based on 1205 kWh typical monthly usage.
What is the commercial electricity rate in Tennessee?+
The average commercial electricity rate in Tennessee is 13.94 cents per kWh as of June 2026, according to the EIA Electric Power Monthly (Table 5.6.A). That compares with the US commercial average of 14.19c/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 Tennessee?+
The average industrial electricity rate in Tennessee is 6.87 cents per kWh as of June 2026, according to the EIA Electric Power Monthly (Table 5.6.A), versus a US industrial average of 9.17c/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 Tennessee?+
No - Tennessee operates a regulated electricity market. TVA (via local co-ops and municipal utilities) 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 Tennessee?+
The average Tennessee household uses approximately 1205 kWh per month. At 14.07c/kWh plus approximately $10 in fixed charges, the average monthly bill is $159. This varies by season (higher in summer for cooling-dominant states like Tennessee, higher in winter for heating-dominant states).
What is the primary electricity source in Tennessee?+
Tennessee's generation mix is primarily Natural gas 30%, nuclear 35%, hydro 20%, coal 10%. 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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