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According to from the ND Monitor, North Dakota has been ranked as the most affordable state for electricity in the nation, with rates nearly 42% below the national average, according to a new report from the American Legislative Exchange Council (ALEC).
Though the 2026 data shows price increases, the report says North Dakota still leads the country in energy affordability for both residential and industrial consumers.
North Dakotans paid an average of 7.93 cents per kilowatt-hour in 2024. As of January of this year, that rate has risen to 8.47 cents per kWh, but North Dakota still holds onto its #1 spot, followed by New Mexico as the second-cheapest.
Utilities like MDU Resources and Otter Tail Power tell the ND Monitor that the low rates are due to an energy mix that leverages local resources, like coal power, which is responsible for 54% of power generation, and wind energy, which is low-cost and renewable, accounting for 35% of total generation.
As new energy-intensive industries move to the state, the PSC is monitoring the grid impact. With concerns that data center operations and other projects will increase costs for consumers, the commission says that those companies commit to handling the infrastructure costs associated, instead of consumers. However, costs are still rising, albeit at lower rates than the rest of the country. The PSC says that this is due to rising material costs for building new transformers and replacing outdated infrastructure, which comes with increasing industrial demands in the state.
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