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ElectricityRatePerKWh

Electricity Rate in Tennessee (2026): 14.47c/kWh Average

The EIA residential electricity price in Tennessee is 14.47 cents per kWh as of May 2026, 3.97c below the US average of 18.44c/kWh. The Tennessee commercial rate is 13.52c/kWh and the industrial rate is 6.45c/kWh (EIA Electric Power Monthly, Table 5.6.A).

Residential Rate
14.47¢
per kWh
vs US Avg
-22%
3.97c below
Avg Monthly Bill
$159
1205 kWh
Provider Choice
No
Regulated monopoly

Tennessee Electricity Rate: What You Need to Know

Tennessee electricity averages 14.47 cents per kWh for residential customers as of May 2026, according to the EIA Electric Power Monthly. This is 3.97c below the US average of 18.44c/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 - 14.47c/kWh (May 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 5.4% 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

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 14.47c)$174.36
Fixed customer charge (estimated)~$10.00
Estimated monthly total$184.36
Tennessee Rate by Sector - May 2026
Residential (US 18.44c)14.47c
Commercial (US 13.54c)13.52c
Industrial (US 8.71c)6.45c
Source: EIA Electric Power Monthly, Table 5.6.A.
Dominant Utility
TVA (via local co-ops and municipal utilities)
Adjacent States
Kentucky14.98c
Virginia17.61c
North Carolina15.09c
Georgia15.84c
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Tennessee Electricity: Frequently Asked Questions

What is the electricity rate in Tennessee in 2026?+
The average residential electricity rate in Tennessee is 14.47 cents per kWh as of May 2026, according to the EIA Electric Power Monthly. This is 3.97c below the US average of 18.44c/kWh (-22%). 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 13.52 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 Tennessee?+
The average industrial electricity rate in Tennessee is 6.45 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 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 14.47c/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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