California is one of the most expensive states to live in, but in terms of energy costs, it is surprisingly one of the most affordable in the country.
A study done by WalletHub has revealed that the state ranks 46th out of the 50 states and the District of Columbia in total energy costs for 2023. California residents pay, on average, $408 per month for electricity, natural gas, motor vehicle fuel and, if they use it, home heating oil.
The most expensive? Another surprise, it’s Wyoming.
The high cost is driven mainly by home heating oil. With its frigid winters, heating a home in Wyoming, as well as in North Dakota and Alaska, has made these states the top three most expensive energy. California, with its milder climate, uses very little heating oil.
To determine the costs for each state, WalletHub researchers collected data from the Census Bureau, Energy Information Administration, Federal Highway Administration, AAA, National Highway Traffic Safety Administration, and Environmental Protection Agency. The costs were then calculated using the following formula:
- Electricity cost = Average monthly consumption of electricity x average retail price of electricity
- Natural gas cost = Average monthly consumption of natural gas x average residential price of natural gas
- Motor vehicle fuel cost = Average motor vehicle fuel price x (Miles traveled/average motor vehicle fuel consumption/Number of drivers in the state)
- Heating oil cost = Average monthly consumption of home heating oil X average residential price of home heating oil
The total energy cost is the sum of electricity, natural gas, motor vehicle fuel and heating oil costs.
The following map and the table below will allow you to evaluate how California compares to other states.