In July 2026, homes in Tennessee paid an average of 13.71¢ per kWh, the 5th cheapest of the 50 states and DC and 25.1% below the U.S. average of 18.31¢.
That price is up 3.8% from a year earlier.
Over the past 12 months the average home in Tennessee used 1,198 kWh a month, for an average bill of $162 (U.S.: $157).
About electricity in Tennessee
Almost every home in Tennessee gets power from a city-owned utility or electric cooperative that buys its electricity from the Tennessee Valley Authority. In-state generation comes mainly from nuclear, coal and natural gas, and Tennessee imports part of what it uses.
- nuclear 39%
- coal 24%
- natural gas 24%
- hydropower 11%
- other 2%
The Tennessee Valley Authority sets the rates its local power companies charge, while the Tennessee Public Utility Commission regulates the state's few investor-owned utilities.
What drives electricity prices in Tennessee
Almost every Tennessee home buys electricity from a city-owned utility or an electric cooperative, and almost all of those buy their power from the Tennessee Valley Authority, a federal corporation. TVA's board sets wholesale rates without review by a state utility commission, and each local power company sets its own retail rates within its contract with TVA.
TVA's mix of nuclear power, coal, natural gas and hydropower from its dams keeps prices well below the national average. Tennessee also buys a share of its power from neighboring parts of the TVA system.
Low prices do not mean low bills. Tennessee homes use more electricity than homes in almost any other state, because many are heated with electricity, often heat pumps, as well as cooled with it through long, humid summers. TVA is planning major new generation as demand grows, including from data centers.
Average electric bill in Tennessee
Over the last 12 months the average Tennessee home paid $162 a month for electricity, the 17th highest of the 50 states and DC. In July 2026 the average bill was $205 for 1,494 kWh.
Over the last 12 months, homes in Tennessee used the most electricity in February, when electric heating drives usage up: an average of 1,602 kWh and a $205 bill. The lightest month was November, at 894 kWh and $120.
What would I pay?
| Monthly use | Per month | Per year |
|---|---|---|
| 500 kWh × 13.71¢ | $68.55 | $823 |
| 1,000 kWh × 13.71¢typical | $137.10 | $1,645 |
| 1,500 kWh × 13.71¢ | $205.65 | $2,468 |
| 2,000 kWh × 13.71¢ | $274.20 | $3,290 |
Estimate your own bill
Cost of electricity in Tennessee by month
Businesses in Tennessee paid 13.43¢ per kWh in July 2026 (the 24th most expensive for business power), and industrial users paid 7.13¢.
Electric companies in Tennessee
87 utilities deliver electricity to homes in Tennessee. The largest is Nashville Electric Service, serving 424,808 homes.
| Utility | Homes served | Avg. home rate |
|---|---|---|
| Nashville Electric Service | 424,808 | 14.04¢ |
| City of Memphis | 385,015 | 13.24¢ |
| Middle Tennessee E M C | 311,520 | 12.47¢ |
| Knoxville Utilities Board | 196,674 | 13.83¢ |
| City of Chattanooga | 164,914 | 12.89¢ |
| Volunteer Electric Coop | 105,248 | 13.08¢ |
| Cumberland Elec Member Corp | 101,734 | 13.76¢ |
| City of Clarksville | 77,509 | 13.67¢ |
| Johnson City | 72,729 | 13.22¢ |
| Duck River Elec Member Corp | 71,969 | 13.59¢ |
"Avg. home rate" is what each utility's full-service residential customers paid on average in 2025 (revenue ÷ kWh sold). Delivery-only utilities have no full-service rate.
Can you choose your electricity supplier in Tennessee?
No. Households in Tennessee buy electricity from the utility that serves their address. Rates are set by the state utility commission (for investor-owned utilities) or by the utility's own board (for co-ops and city-owned utilities).
Tennessee compared with neighboring states
| State | Price per kWh | Avg. monthly bill (12 mo.) |
|---|---|---|
| Tennessee | 13.71¢ | $162 |
| Kentucky | 13.81¢ | $154 |
| Arkansas | 14.33¢ | $141 |
| Mississippi | 14.54¢ | $171 |
| North Carolina | 15.16¢ | $152 |
| Missouri | 16.09¢ | $145 |
| Georgia | 16.27¢ | $162 |
| Alabama | 16.40¢ | $185 |
| Virginia | 17.55¢ | $173 |
Tennessee electricity FAQ
What is the average electric bill in Tennessee?
The average home in Tennessee paid $162 a month over the last 12 months, using 1,198 kWh. That is the 17th highest of the 50 states and DC. In July 2026 alone, the average bill was $205.
How much does electricity cost per kWh in Tennessee?
Homes paid an average of 13.71¢ per kWh in July 2026, 25.1% below the U.S. average of 18.31¢. Businesses paid 13.43¢ per kWh.
Which month has the highest electric bills in Tennessee?
February, in the last 12 months of data: the average bill reached $205 (1,602 kWh), compared with $120 in November, the lowest month.
Can I choose my electricity provider in Tennessee?
No. Households in Tennessee buy electricity from the utility that serves their address, at rates set by regulators or the utility's board.
What are the largest electric companies in Tennessee?
By number of residential customers in 2025: Nashville Electric Service (424,808), City of Memphis (385,015), Middle Tennessee E M C (311,520).
Latest TN electric rates, bills and usage: U.S. Energy Information Administration retail sales data (forms EIA-861M and EIA-861), latest month July 2026. Utilities and suppliers: EIA-861 (2025). Bills and usage are revenue and sales divided by customers. Last updated 2026-10-20.