Independent resource. Not affiliated with any utility or energy provider. Data sourced from the U.S. Energy Information Administration.Verified June 2026
Kentucky Electricity Cost 2026: 15.02¢/kWh
Kentucky residential electricity rates average 15.02 cents per kWh in 2026, -20.2% vs the 18.83¢ US national average. The state operates a regulated retail market with coal as the primary generation source.
State Rate
15.02
cents/kWh
Monthly Bill
$130
at 863 kWh
vs National
-20.2%
national avg 18.83¢
Rank (cheapest first)
16/50
YoY change +9.7%
Market Type
Regulated
Supply rate set by state PUC
Primary Generation
Coal
per EIA State Energy Profile
Annual Bill (avg usage)
$1,555
vs national $1,950
Kentucky electricity market
Regulated state with below-average electricity prices, driven by historically coal-heavy generation that is still cost-competitive, though a 12.7% year-over-year rise in early 2026 has narrowed its advantage. LG&E and Kentucky Utilities (PPL subsidiaries) and Kentucky Power (AEP) are the main investor-owned utilities; the Tennessee Valley Authority serves parts of western Kentucky.
Where Kentucky residents save
No retail competition. Below-average rates mean efficiency savings produce smaller absolute dollars than in high-rate states, but the same percentages apply: smart thermostat, LED retrofit, weatherization. Weatherization Assistance Program supports low-income households.
Primary utilities
- LG&E
- Kentucky Utilities
- Kentucky Power (AEP)
Kentucky bill estimates by usage
| Home Profile | Monthly kWh | Monthly Bill | Annual Bill |
|---|---|---|---|
| Apartment | 500 | $75 | $901 |
| Small house | 750 | $113 | $1,352 |
| Average household | 863 | $130 | $1,555 |
| Large house | 1200 | $180 | $2,163 |
| Large house + EV | 1500 | $225 | $2,704 |
Estimates use the Kentucky state-average rate of 15.02¢/kWh from EIA data. Your actual bill includes delivery charges, customer-service fees, and state/local taxes already blended into this retail rate, plus any locality-specific surcharges not captured at the state-average level.