Utility Costs in Tennessee (TN)

The average household in Tennessee pays $233 per month for utilities, which breaks down to $135/mo for electricity (at 11.5¢/kWh), $60/mo for natural gas, and $38/mo for water. This is $14 (5.67%) below the national average of $247/mo. TVA provides affordable power. Hot summers drive AC usage. Low overall utility costs.

Electric Bill $135/mo 11.5¢/kWh
Gas Bill $60/mo $-5 vs avg
Water Bill $38/mo $-7 vs avg
Total Monthly $233/mo $2,796/year
vs. National Avg -$14 5.67% below avg
Cost Tier Moderate $2,796/yr

Utility Costs by City in Tennessee

The table below shows average monthly utility costs for 4 cities in Tennessee, sorted by total cost from highest to lowest. Costs can vary within a state due to different utility providers, local water systems, and microclimates. Nashville is the most expensive at $240/mo, while Chattanooga is the most affordable at $222/mo.

City Electric Gas Water Total/Mo Annual vs. State Avg
Nashville $138 $62 $40 $240 $2,880 +$7
Knoxville $132 $55 $38 $225 $2,700 -$8
Memphis $130 $58 $35 $223 $2,676 -$10
Chattanooga $128 $58 $36 $222 $2,664 -$11
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How Tennessee Compares to Other States

Below is a comparison of Tennessee with five states that have similar total monthly utility costs. This comparison helps illustrate where Tennessee stands nationally and shows how the cost breakdown (electric vs. gas vs. water) can differ even when totals are similar.

State Electric Rate Gas Water Total/Mo
Tennessee (TN) $135 11.5¢/kWh $60 $38 $233
North Carolina (NC) $130 12.0¢/kWh $60 $42 $232
Illinois (IL) $115 14.5¢/kWh $80 $40 $235
Louisiana (LA) $140 11.8¢/kWh $55 $40 $235
Missouri (MO) $125 12.5¢/kWh $70 $40 $235
Colorado (CO) $115 14.2¢/kWh $65 $50 $230

Utility Cost Breakdown for Tennessee

Electricity in Tennessee

The average electricity bill in Tennessee is $135/month, with a rate of 11.5¢/kWh. This is well below the national average rate of about 16 cents per kWh, making Tennessee one of the more affordable states for electricity. The total bill of $135/mo is below the national average of $137/mo.

Natural Gas in Tennessee

Natural gas costs average $60/month in Tennessee. This is near the national average, reflecting moderate heating needs and gas pricing. The national average gas bill is approximately $65/month.

Water in Tennessee

Water and basic sewer service averages $38/month in Tennessee. This is near the national average for residential water service. The national average water bill is approximately $45/month.

Frequently Asked Questions About Utilities in Tennessee

What is the average utility bill in Tennessee?

The average household in Tennessee pays approximately $233 per month for utilities, or $2,796 per year. This includes $135 for electricity, $60 for natural gas, and $38 for water. This is $14 below the national average.

How much is electricity per kWh in Tennessee?

The average residential electricity rate in Tennessee is 11.5¢/kWh, which translates to an average monthly electric bill of $135. This is well below the national average of approximately 16 cents per kWh.

Which city in Tennessee has the highest utility costs?

Among the cities tracked, Nashville has the highest average utility costs at $240/month, while Chattanooga has the lowest at $222/month. Costs can vary further depending on your specific utility provider and usage.

How can I lower my utility bills in Tennessee?

To reduce your utility costs in Tennessee, consider: upgrading to energy-efficient appliances (look for ENERGY STAR ratings), improving home insulation and sealing air leaks, using a programmable or smart thermostat, switching to LED lighting, and fixing any water leaks promptly. Check with your local utility for rebate programs and energy audit services.

Are utility costs in Tennessee going up?

Utility costs nationwide have been increasing at approximately 2-4% per year due to infrastructure investments, fuel costs, and growing demand. In Tennessee, trends depend on local factors including energy source mix, regulatory decisions, and weather patterns. States with hydropower or wind energy tend to see more stable pricing. Contact your local utility provider for rate change notices and budget billing options.

Compare Utility Costs Across States

Use our utility cost lookup tool to compare Tennessee with any other state, or browse all 50 states ranked by cost to see where Tennessee stands nationally. Understanding utility costs can help with budgeting, relocation decisions, and identifying savings opportunities.