We dug into the U.S. Energy Information Administration’s data to look at the average monthly electric bill for Kentucky residential households. These averages are for the full year of 2018, not any specific month of 2019, given that electricity usage & prices fluctuate month-to-month.
Why Are Electric Bills in Kentucky Comparatively High?
The two factors that make up the cost an electric bill are (1) cost and (2) consumption. Looking at each, it’s easy to notice the low electricity rates of Kentucky when compared to the national average (17.6%), but it’s even easier to notice the high rate of electricity consumption in the state (27.6%).
Reasons for Low Electricity Rates in Kentucky
Even though the electricity rates in Kentucky are much lower than the national average (17.6%), it’s important to understand what makes electricity more or less expensive. The factors affecting this number are:
- Supply – an increase in the supply of energy brings costs down. For example, weather events such as high amounts of rain or high wind speeds can temporarily increase the supply of energy where there are hydropower plants or wind turbines to take advantage, and as a result, lower electricity rates.
- Demand – an increase in the demand for energy causes costs to rise. This is because the use of more costly fuels, such as natural gas, help “fill in” for the rise in demand. For example, a heat wave might temporarily increase the demand for cooling and the subsequent need for fuels, and as a result, raise electricity rates.
Additional factors that impact electricity rates include state & federal regulations, global markets and even financial speculation.
Reasons for High Electricity Consumption in Kentucky
And given that Kentucky residents consume much more electricity than most other states (27.6%), it’s important to understand exactly what electricity is used for. The EIA looked at the end uses of electricity in the average American household and found the following breakdown:
“Other uses” includes small electric devices, heating elements, exterior lights, outdoor grills, pool and spa heaters, backup electricity generators, and motors not listed above. Does not include electric vehicle charging.
Tips for Lowering Electric Bill
- Reduce space heating/cooling – given that heating & cooling make up a large part of the average electric bill, increasing energy efficiency in this area can have arguably the biggest impact on your bill. Here are some things you can do to reduce your usage in this area:
- Use a programmable thermostat (can reduce heating/cooling by ~10%)
- Use extra insulation
- Dress up/down to the temperature
- Replace your air filter more often
- Check seals on windows/doors/appliances for openings/leaks
- Reduce water heating – one of the next biggest portions of the average electric bill is from water heating, which can be reduced by showering at lower temperatures, taking shorter hot showers and by lowering the temperature on the water heater itself (ideally to 120 degrees Fahrenheit).
- Adjust fridge & freezer temperatures – ideally, your fridge should be at 38 degrees and your freezer at 5 degrees Fahrenheit.
Where Does Kentucky Get Its Electricity From?
‘Limited’ is how I’d describe Kentucky’s electricity sources. While the state does draw electricity from a multitude of sources, such as natural gas, ethanol, and biomass, coal runs the show in Kentucky. In fact, Kentucky is the fifth-largest coal producer in the nation, according to the EIA.
The EIA also reports that, in 2018, 75% of Kentucky’s electricity was generated by coal. However, the state does take advantage of hydroelectric installations, and 6% of the state’s electricity was generated by hydroelectric means.
 Data from: https://www.eia.gov/electricity/data.php#sales