Independent resource. Not affiliated with any utility or energy provider. Data sourced from the U.S. Energy Information Administration.Verified June 2026
Tennessee Electricity Cost 2026: 14.94¢/kWh
Tennessee residential electricity rates average 14.94 cents per kWh in 2026, -20.7% vs the 18.83¢ US national average. The state operates a regulated retail market with nuclear/hydroelectric as the primary generation source.
State Rate
14.94
cents/kWh
Monthly Bill
$129
at 863 kWh
vs National
-20.7%
national avg 18.83¢
Rank (cheapest first)
15/50
YoY change +7.4%
Market Type
Regulated
Supply rate set by state PUC
Primary Generation
Nuclear/Hydroelectric
per EIA State Energy Profile
Annual Bill (avg usage)
$1,547
vs national $1,950
Tennessee electricity market
Regulated state served entirely by the Tennessee Valley Authority at the wholesale level, with local distribution by city-owned utilities (Memphis Light Gas and Water, Nashville Electric Service, Knoxville Utilities Board, Chattanooga EPB) and electric cooperatives. Generation mix is nuclear (Sequoyah, Watts Bar), hydro (Norris, Wheeler, Pickwick), and natural gas.
Where Tennessee residents save
No retail competition. EnergyRight (the TVA-administered program) offers heat-pump rebates, weatherization, and the Home Uplift program for low-income households. Local distributors also run their own efficiency programs.
Primary utilities
- Tennessee Valley Authority (wholesale)
- Memphis Light Gas and Water
- Nashville Electric Service
Tennessee bill estimates by usage
| Home Profile | Monthly kWh | Monthly Bill | Annual Bill |
|---|---|---|---|
| Apartment | 500 | $75 | $896 |
| Small house | 750 | $112 | $1,345 |
| Average household | 863 | $129 | $1,547 |
| Large house | 1200 | $179 | $2,151 |
| Large house + EV | 1500 | $224 | $2,689 |
Estimates use the Tennessee state-average rate of 14.94¢/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.