The Energy Information Administration projects that the average U.S. household will pay 18.7 cents a kilowatt-hour for electricity in 2027. That would be up from 18.2 cents in 2026 and 17.3 cents in 2025. The figure is a forecast of the annual average, not a price on any bill today.
The projection is in the agency’s October Short-Term Energy Outlook electricity tables, released October 6. The same table shows 16.5 cents in 2024, so the residential price is on track to rise three years in a row.
What 18.7 cents means for a month of electric bills
The change from 17.3 cents to 18.7 cents is 1.4 cents per kilowatt-hour, or about 8% over two years. A household that uses 1,000 kilowatt-hours in a month would pay $187 at the 2027 price, compared with $173 at the 2025 price. The increase from 2026 to 2027 is smaller, half a cent per kilowatt-hour.
The forecast is a national annual average, so it hides large gaps. Prices differ by state, utility and season, and a household’s own rate is printed on its bill. Anyone on electric heat, or running air conditioning most of the summer, feels a price change more than a household that uses little power.
Households that want to know where they stand can compare the cents per kilowatt-hour on their latest statement with 18.7 cents, then ask the utility whether a rate increase is pending. The question matters most for people on fixed incomes, where a half-cent change repeats on every bill for a year.
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Why wholesale power is only part of the forecast
The EIA expects wholesale electricity prices to average $52 per megawatt-hour across 11 trading hubs in 2026, about 11% above 2025. It expects them to ease slightly to $49 in 2027. The sharpest rise is in the PJM region, where wholesale prices are forecast to rise 41% over 2025, the largest jump of any region.
The agency stresses that wholesale prices are just one component of what households pay. In its words, retail prices also reflect transmission and distribution upgrades and, in some regions, capacity market auction prices. Wholesale prices are strongly influenced by natural gas prices and weather.
That is why a flat or falling wholesale price in 2027 does not mean a falling bill. The EIA projects the residential price still edging up to 18.7 cents even as wholesale power gets slightly cheaper.
How the forecast compares with what households pay now
The government’s measured price today is higher than the forecast average. The Bureau of Labor Statistics reported that electricity averaged 19.6 cents a kilowatt-hour in September, up from 18.8 cents a year earlier. In the South region the September average was 16.3 cents.
The two numbers measure different things. The BLS figure is a monthly average in the cities it samples, while the EIA figure is a national annual average that blends all months and all parts of the country. A September price above 18.7 cents does not contradict the forecast.
The BLS consumer price report adds the direction of travel. The electricity index rose 0.2% in September and 4.4% over the 12 months ending in September. The same report put the natural gas index up 5.0% over 12 months.
Winter bills depend on the fuel in the furnace
For the coming winter, the EIA said it forecasts that homes using electricity as the main heating source will spend slightly more than last winter. Homes that heat with natural gas or propane are expected to spend less on average than last winter, and heating oil homes face the largest increase, about 21%, according to the same October outlook.
The EIA projects natural gas at the Henry Hub trading point to average $3.16 per million British thermal units in 2027, down from $3.48 in 2026. Cheaper gas helps households that heat with it, and the agency notes that natural gas prices strongly influence wholesale power prices.
The outlook also shows electricity use rising. Third-quarter 2026 consumption was up 4% from a year earlier, led by 6% growth in the residential sector. For 2027 the EIA expects commercial demand to grow 2.8% and industrial demand 2.7%, with residential demand roughly flat.
Where federal help with energy bills starts
The Low Income Home Energy Assistance Program, known as LIHEAP, is the main federal source of help. The Administration for Children and Families describes it as a federally funded program that helps low-income households with their home energy bills.
The agency’s page refers to the HHS poverty guidelines and state median income estimates for eligibility, and it points to the LIHEAP Clearinghouse for where and how to apply for help.
Because electricity is forecast to cost more each year through 2027, applying early in the heating season, rather than waiting for a shutoff notice, is the safer approach for any older household that expects to struggle with the bills.
Worried about electric bills climbing through 2027?
With the EIA projecting the residential price at 18.7 cents in 2027, a household that waits for a shutoff notice before looking for help pays the higher price on every bill in the meantime. Help with heating and cooling costs exists, but it takes applications that vary by state.
The Senior Property Tax & Home-Cost Relief Kit puts heating, cooling and home-repair help in one place, so an older household can see what is available before the winter bills arrive. It is a 64-page kit with a part on utilities and home costs and another on repairs, insurance and staying put.
Get the kit’s heating, cooling and home-repair help for rising electric bills →
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This article was produced with AI assistance and edited for accuracy against the sources linked above.
