Average Electric Bill in Tennessee — May 2026
The average residential electric bill in Tennessee is $130/mo as of May 2026, at an average price of 14.47¢/kWh — +5.4% versus a year earlier.
Tennessee at a glance
Price history (last 12 months)
| Month | Avg residential price |
|---|---|
| May 2026 | 14.47¢/kWh |
| April 2026 | 14.94¢/kWh |
| March 2026 | 15.08¢/kWh |
| February 2026 | 12.82¢/kWh |
| January 2026 | 13.10¢/kWh |
| December 2025 | 12.87¢/kWh |
| November 2025 | 13.47¢/kWh |
| October 2025 | 13.06¢/kWh |
| September 2025 | 13.29¢/kWh |
| August 2025 | 13.02¢/kWh |
| July 2025 | 13.21¢/kWh |
| June 2025 | 13.82¢/kWh |
| May 2025 | 13.73¢/kWh |
Residential average retail price by month. Source: U.S. EIA (public domain).
Why your bill is rising
Tennessee is in the PJM Interconnection footprint, and PJM capacity prices for the next delivery years have already cleared at auction. These are contract results, not forecasts — they flow into residential bills as a capacity charge, on top of whatever fuel and distribution costs do.
Only part of Tennessee is in PJM: Largely TVA; retail choice minimal.
- locked2026/2027 delivery year (Jun 2026 - May 2027)+0.41¢/kWh · ≈+$3.67/mo
Monthly impact at the state-average usage of 896 kWh/mo.
Locked PJM capacity change vs the 2025/2026 auction ($269.92/MW-day) already in the bill, RTO-wide clearing price converted at a 60% system load factor. Several utility zones cleared higher - treat as a floor. Applies only to the PJM-served part of Tennessee. source · 2025-07-22
- locked2027/2028 delivery year (Jun 2027 - May 2028)+0.44¢/kWh · ≈+$3.94/mo
Monthly impact at the state-average usage of 896 kWh/mo.
Locked PJM capacity change vs the 2025/2026 auction ($269.92/MW-day) already in the bill, RTO-wide clearing price converted at a 60% system load factor. Several utility zones cleared higher - treat as a floor. Applies only to the PJM-served part of Tennessee. source · 2025-12-17
- locked2028/2029 delivery year (Jun 2028 - May 2029)+0.38¢/kWh · ≈+$3.40/mo
Monthly impact at the state-average usage of 896 kWh/mo.
Locked PJM capacity change vs the 2025/2026 auction ($269.92/MW-day) already in the bill, RTO-wide clearing price converted at a 60% system load factor. Several utility zones cleared higher - treat as a floor. Applies only to the PJM-served part of Tennessee. source · 2026-07-14
- trendIf the last 12 months' trend continues+0.78¢/kWh · ≈+$6.99/mo
Monthly impact at the state-average usage of 896 kWh/mo.
Extends the observed year-over-year residential price change (EIA) one more year. Context, not a promise - fuel and distribution costs can move either way. source · 2026-05
Not sure if your own bill jump is price, usage, or both? Our diagnostic guide walks through both checks.
Run your own numbers
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Tennessee average: $130/mo at 14.47¢/kWh (+5.4% YoY)
Your bill is 15.7% above the state average (≈1,037 kWh/mo at the state average price).
Where your bill is headed:
- locked2027/2028 delivery year (Jun 2027 - May 2028)+$0.31/mo
- locked2028/2029 delivery year (Jun 2028 - May 2029)-$0.31/mo
- trendIf the last 12 months' trend continues+$8.09/mo
“Locked” = PJM capacity auction prices already cleared (a floor - several utility zones cleared higher). “Trend” = the observed 12-month EIA trend extended, not a promise.
Three ways to fight it:
- Find your energy hogs. See what each appliance actually costs to run at Tennessee rates: cost-to-run guides.
- Get a home energy audit. DOE guide to professional and DIY audits.
Estimate only, based on official data as of May 2026 (U.S. EIA residential averages; PJM auction results). Your actual plan price differs.
Get the Tennessee rate alert
One email a month when the Tennessee numbers update from the EIA refresh - price, average bill and trend, sourced and dated.
Can you switch plans in Tennessee?
No. Tennessee's residential electricity market does not offer retail supplier choice, so you cannot cut the bill by switching plans. Largely TVA; retail choice minimal.
What you can do instead: cut the usage side of the bill. See what each appliance actually costs to run at Tennessee rates in our cost-to-run guides, and target the biggest loads first.
Frequently asked questions
- What is the average electric bill in Tennessee?
- The average residential electric bill in Tennessee is $130/mo as of May 2026, at an average price of 14.47¢/kWh (+5.4% versus a year earlier), per official U.S. EIA data.
- Why are electric bills changing in Tennessee?
- Tennessee is partly in the PJM Interconnection footprint, where capacity prices for upcoming delivery years have already cleared at auction - a contract result, not a forecast, that flows into residential bills as a capacity charge on top of fuel and distribution costs.
- Can I switch electricity suppliers in Tennessee?
- No. Tennessee's residential electricity market does not offer retail supplier choice. Largely TVA; retail choice minimal.
Estimate only, based on official data as of May 2026. Source: U.S. Energy Information Administration, residential retail sales (public domain), refreshed monthly. PJM capacity figures are Base Residual Auction clearing prices. Your actual plan price differs.