10 States Where Residents Enjoy the Lowest Utility Bills

The cost of utilities varies widely depending on your state, which can make or break your financial situation. Having low utility bills is a great way to lower your financial stress, since you'll have more money leftover at the end of each month.

Below is a list of the top 10 states with the lowest combined utility costs, according to data compiled by Move.org. This includes internet, phone service, trash, sewer, natural gas, water, and electricity.

Average monthly utility cost: $464

With a low population density and a diverse energy portfolio, Kansas residents enjoy cheap and affordable utility bills.

Given the state's lack of mountains, Kansas is set up to handle significant wind energy production, which helps keep costs low. The small population also means reduced strain on the electrical grid and reduced infrastructure and maintenance costs.

Average monthly utility cost: $460

One of the main reasons utilities are cheap in the Keystone State is the Marcellus and Utica Shale formations, which provide ample natural gas. Additionally, the governor of Pennsylvania has taken steps to reduce utility prices and focus more on producing renewable energy systems.

Average monthly utility cost: $439

As the national leader in wind energy production, Iowa has cheaper electricity costs than most states. Additionally, the mild summers mean residents rely less on air conditioning to keep cool. As an added bonus, the Iowa Utilities Commission regulates the rates of most of the state, which keeps utility companies from overcharging customers.

Average monthly utility cost: $424

With a mild climate for part of the year, abundant water resources, and proactive legislation, Michigan has lower utility costs than most other states. In recent years, the state government has also passed bills to lower utility prices and provide energy assistance programs to residents in need.

Average monthly utility cost: $422

Minnesota has low utility costs, with 29% of its energy coming from renewables and plenty of freshwater reserves. The state government has enacted several measures over the years to improve efficiency and keep rates low, creating an environment where residents have lower costs than the average Midwestern state.

Average monthly utility cost: $410

As one of the most sparsely populated states, residents benefit from the decreased demand and strain on utility infrastructure. This is helped by the abundance of wind energy, which accounts for approximately 55% of the state's electricity production. While the cold winters require a lot of energy to warm residences, that is balanced out by the relatively mild summers.

Average monthly utility cost: $408

Illinois produces the most nuclear power of any state in the country, with 11 operational power plants. Nuclear accounted for 54% of the state's energy generation in 2023, resulting in lower overall utility costs.

The state also has many energy efficiency initiatives, such as the Illinois Energy Efficiency Loan Program, which allows utility customers to finance energy improvements through utility bills.

Average monthly utility cost: $405

North Dakota benefits from a deregulated energy market and a diverse energy portfolio like its southern neighbor. The majority of energy generation comes from coal, which keeps costs low. A focus on renewables in recent years has also helped, with 36% of North Dakota's electricity in 2023 coming from wind power.

All of that, coupled with one of the lowest populations of any state in the country, makes for cheap utilities.

Average monthly utility cost: $382

For many decades, the state of Wisconsin has focused on energy efficiency programs, regulatory oversight, and investments in renewables. This has created cheap utilities for most residents.

Many energy providers purchase natural gas in the summer when it's cheaper to store for the winter, further reducing costs. The state has also benefited from significant clean energy investments from the federal government, which is expected to reduce costs in the long run.

Average monthly utility cost: $374

New Mexico has the cheapest utilities because of its perfect combination of low population density, vast renewable power generation capability, and temperate climate. The state has committed to building wind and solar power plants, which have paid big dividends.

In 2023, renewables provided 43% of electricity generation in the state, a six-fold increase from 2015. With solar cells increasing in efficiency yearly, a sunny state like New Mexico is poised to have even lower electricity rates.

Reducing your monthly costs and utilities can be a game-changer for your finances, so you won't have to live paycheck to paycheck any longer. So, if you're looking to save on monthly utility bills, heading to the Midwest or Southwest might be your best bet. Those states benefit from a combination of low population density, abundant natural resources, and investments in renewable energy that help keep electric, gas, and water costs manageable.

Avoid moving to isolated states that have to import their energy from other sources, like Hawaii. Due to its remote location and dependence on imported oil, you'll spend much of your paycheck just on utilities.