U.S. Electricity Prices Rise in April 2026: Causes and State-Level Variations

Electricity prices in the United States continued their upward trend in April 2026, according to data from Heatmap and MIT’s Electricity Price Hub. On average, prices in April 2026 were 6.7% higher than in April 2025, while the 12-month trailing average—a metric that reduces seasonal volatility—rose by 6.5% compared to the previous year.

These increases mark new peaks in electricity pricing, consistent with long-term trends. However, the growth rate in April was not unusual. National average electricity prices have been rising at a similar pace over the past five years, with the exception of 2022, when natural gas costs spiked significantly. Natural gas plants supply the largest share of U.S. power, making fuel costs a primary driver of electricity prices.

Despite the ongoing conflict between the U.S. and Iran, which has driven up gasoline and other crude oil-based product prices, U.S. electricity prices have remained unaffected. Unlike Europe and Asia, where the war has disrupted natural gas supplies and caused price surges, the U.S. is largely self-sufficient in natural gas. The only potential impact on U.S. power prices would occur if the conflict led to increased natural gas exports, thereby tightening domestic supply. However, this scenario is unlikely in the near term, as U.S. export facilities are already operating at full capacity.

“We couldn't export more gas, even if we wanted to.”

Ryan Kellogg, energy economist at the University of Chicago

While national trends remain stable, a closer examination of state-level data reveals significant variations. Some states are experiencing much sharper price increases than the national average. For example, New Jersey and Washington, D.C. saw their 12-month trailing averages rise by 21% and 25%, respectively, between May 2025 and April 2026—far exceeding the national average increase of 6%. These states are part of the PJM Interconnection market, where electricity demand has outpaced supply, contributing to faster price growth.

The latest data also highlights how electricity prices can fluctuate due to temporary and often arbitrary factors. In California, rates were relatively stable in the first three months of 2026 compared to 2025, but surged by more than 50% in April. This spike was attributed to the state’s carbon tax, which provided residents with a bill credit in April 2025. Regulators shifted the payment to August 2026, when electricity bills typically rise due to increased air conditioning usage.

Similarly, Massachusetts experienced one of the largest month-to-month price jumps in the dataset, with utility provider Eversource increasing electric rates by 36% between March and April 2026. The utility had previously agreed to artificially