Electricity Rate in Tennessee (2026): 13.14c/kWh Average
Tennessee Electricity Rate: What You Need to Know
Tennessee electricity averages 13.14 cents per kWh for residential customers as of April 2026, according to the EIA Electric Power Monthly. This is 4.51c below the US average of 17.65c/kWh. The average monthly bill for Tennessee households is $168 based on typical usage of 1282 kWh.
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 3.5% year-over-year as of April 2026. This compares to the US average increase of 5.4% 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.
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