North Dakota has the cheapest electricity in the country, data shows

This article reports that North Dakota has the cheapest electricity in the United States, averaging 7.93 cents per kilowatt-hour in 2024, 42% below the national average. This affordability continued into 2025 and January of the current year, according to the U.S. Energy Information Administration. Utility companies MDU Resources and Otter Tail Power attribute these low rates to North Dakota's commitment to reliability, fuel diversity, and sound energy policy. Garret Senger, chief utilities officer for MDU Utilities Group, emphasized the value of a balanced energy mix and forward-looking policies. Stephanie Hoff, director of communications for Otter Tail Power, highlighted the utilities' commitment to providing low-cost, reliable service, noting that their operations are guided by state regulators. The Public Service Commission, through Commissioner Sheri Haugen-Hoffart, scrutinizes any proposed rate increases by investor-owned utilities like Otter Tail and MDU. Coal remains the dominant energy source, accounting for 54% of the state's electricity in 2024, followed by wind at 35%. While there are concerns that large power users, such as data centers, could increase electricity costs for residential consumers, both MDU and Otter Tail representatives expressed hope that these new industries would ultimately benefit existing customers by spreading costs across a larger base. Haugen-Hoffart confirmed that every investor-owned utility in the state requires data center developers to cover the cost of any necessary infrastructure upgrades related to their projects, though she noted that inflationary pressures continue to impact the broader cost of grid upgrades.