State Commercial Rate Comparison

What the table shows

The table above lists seventeen states in descending order of average commercial price. Each row has four columns:

Column	What it means
State	Links to the state hub page with cannabis program notes and utility territories
Avg. commercial price	EIA Table 5.6.A average cents per kWh for the latest published month [eia-epm-5-6-a]
Cannabis market	Whether the state licenses adult-use, medical-only, or low-THC medical production and retail
Energy choice	Whether commercial customers can choose a competitive electricity supplier

The caption under the table names the EIA period. Every state rates page on this site uses the same source id so numbers stay consistent between this tool and pages like Illinois commercial electricity rates.

How to read the price column

EIA's commercial average is a revenue-weighted blend of every non-residential account in the state: corner stores, warehouses, offices, and cannabis facilities together [eia-epm-5-6-a]. A indoor grow with high demand and long run hours often lands above the state average because it sits in a larger rate class with demand charges. A small dispensary on a watt-hour schedule may sit below it.

The average is useful for two jobs. First, it sets a quick budget rate when you only know square footage and hours. The cannabis facility energy cost calculator defaults to this figure unless you override it. Second, it shows whether your actual all-in cents per kWh from a bill is out of line with peers in the same state. If you pay 18 cents in a state averaging 11, the gap is worth investigating before you assume the market is simply expensive.

Assume a facility uses 200,000 kWh per month at the Illinois June 2026 average of 14.53 cents/kWh. Energy charges alone would run about $29,060 per month before demand. That math uses the table rate as an input, not a quote.

What the choice column tells you

Energy choice status comes from each state's regulator and statute notes in our data files. Labels like "full commercial choice" mean non-residential customers can enroll with a competitive supplier while the utility continues delivery [il-plugin-illinois]. Massachusetts restructured its electric industry to allow competitive supply alongside utility default service [ma-dpu-choice]. "Capped commercial choice" means a statewide load limit can close enrollment even when the statute allows choice. "Limited choice" means most cannabis operators stay on bundled utility service.

Before you compare supply offers, run the state deregulation eligibility checker. It pairs cannabis licensing status with choice rules for your facility type. If choice is open, read what is energy deregulation and your state's switching guide for enrollment mechanics.

Limits of a sitewide average

This table does not show:

• Demand charges in dollars per kW, which can be 30 to 70 percent of a cultivation bill on some tariffs
• Time-of-use splits that make the same kWh cheaper at night and costlier when lights ramp
• Utility-specific delivery riders that change month to month
• Competitive supply prices, which move daily

Click through to your state row for territory-level detail. Use the demand charge estimator when you have a billed peak from your statement. Use the supplier contract comparison worksheet when you have quotes to compare on equal terms.

The ranking answers "where does my state sit nationally among cannabis markets?" It does not answer "what will my meter pay next month?" For that you need your tariff sheet and twelve months of bills, broken out the way we describe on understanding your commercial utility bill.

Regional clusters and what they imply

Grouping the table by ISO or market structure helps siting and expansion decisions. Numbers below use June 2026 EIA commercial averages [eia-epm-5-6-a]; confirm current figures in the live table.

Northeast (ISO-NE, NYISO). Massachusetts, Connecticut, Rhode Island, New Hampshire, Maine, and New York show among the highest commercial averages. All allow competitive supply for most commercial customers [ma-dpu-choice]. Savings come from contract structure, capacity pass-through management, and demand work, not from low grid prices.

Mid-Atlantic (PJM). Illinois, Pennsylvania, New Jersey, Maryland, Delaware, and Ohio blend mid-teens averages with full or capped choice. Illinois customers shop through Plug In Illinois [il-plugin-illinois]. Capacity charges link to peak load contribution; read demand charges explained before comparing supply offers.

Southwest and West. Nevada and California averages reflect desert cooling and utility wildfire cost recovery. California direct access and Nevada NV Energy tariffs need state-specific pages, not the national average alone.

Texas (ERCOT). Low average commercial price masks volatile wholesale index products. Cultivation on index contracts can spike in August. Fixed products trade lower headline savings for budget certainty.

Use state hub pages for territory detail: Pennsylvania, New Jersey, Maryland, Connecticut.

Effective rate vs. EIA average on your bill

Compute your effective cents per kWh as total bill dollars divided by total kWh for a month, then compare to the table.

Your effective rate vs. state average	Likely story
Within 1 cent	Normal for your rate class and load shape
2+ cents above	Demand-heavy, wrong class, or high supply contract
2+ cents below	Small-load class, off-peak heavy, or subsidized tariff

Demand charges inflate effective rate per kWh because kWh in the denominator stays large while fixed kW dollars add numerator. Two facilities in the same state at the same EIA average can pay different effective rates.

Split supply from delivery before blaming the grid. Delivery follows rate cases; supply follows contracts or default procurement.

Cannabis market column vs. energy choice column

Licensed cannabis status does not automatically mean low rates or open choice. Texas has cannabis licenses and retail choice but a different market design than Pennsylvania. California has cannabis and high averages with limited classic choice for many cultivators.

Read both columns together. Green on both means procurement plus cultivation-specific state guides apply. High price plus full choice means shopping is essential. High price plus limited choice means efficiency, rate class, and demand dominate.

The state deregulation eligibility checker encodes the same logic with facility-type routing.

Using the table in budgeting and pro formas

Developers often plug 12 cents into a pro forma because it is easy. If the build is in Connecticut or Massachusetts, EIA averages near 20 cents are a better starting stress case [eia-epm-5-6-a]. Texas builds should stress index volatility, not only the low average.

Multiply monthly kWh from engineering load letters by table rate for energy-only first pass. Add $8 to $18 per kW demand placeholder from tariff sheets when service size exceeds small-commercial thresholds.

For facility-specific monthly estimates, use the cannabis facility energy cost calculator with state pre-filled from this table.

Update cadence and data lineage

EIA Table 5.6.A publishes monthly with lag [eia-epm-5-6-a]. State hub commercial rate pages reuse the same source id so numbers match between this tool and pages like Illinois commercial electricity rates and California commercial electricity rates.

Cannabis program notes and choice rules come from data/states/*.json with lastVerified on each hub. When regulators change choice caps or default rate mechanics, we update JSON and narrative together.

If your bill review shows a persistent gap vs. state average, send bills through get started or compare offers on the supplier contract comparison worksheet.

Comparing two candidate states for expansion

Operators siting a second facility often compare two rows in this table. Add these non-price factors before deciding on cents alone:

• Choice status and cap rules (Michigan cap vs. Pennsylvania open market)
• Cannabis energy reporting burden (state cultivation pages document filing rules)
• Utility interconnection timelines for new service
• Climate effects on HVAC kWh per pound
• Local efficiency rebate budgets for horticultural LED

A 3-cent lower average can disappear if demand tariffs ratchet harder or if default supply resets higher each winter.

Run the state deregulation eligibility checker for both states and read each how to switch electricity suppliers guide before lease signing.

Small commercial vs. large power within the same state

EIA averages blend rate classes. Your future facility may land in general service while the table reflects mostly large commercial accounts. State commercial rate pages break out typical utility schedules and demand thresholds.

Dispensaries comparing themselves to the state average often look better than cultivators on cents per kWh because load factor and class differ. Compare like facilities using state dispensary retail energy and cultivation facility energy guides.

Historical context without mistaking trend for quote

EIA averages move with fuel costs, rate cases, and rider true-ups [eia-epm-5-6-a]. A state that ranked fifth highest last year may rank third this year after a delivery case settled.

Use the table for cross-section comparison on one publication month, not as a time series. State rate pages note the EIA period in the caption.

When wholesale gas falls, index supply offers improve before EIA averages fully reflect retail blends. Conversely, capacity auction results in PJM can raise supplier offers before EIA commercial averages tick up.

Pairing the table with facility tools

Workflow for a new director of operations:

1. Find your state row here.
2. Run cannabis facility energy cost calculator with that average as default rate.
3. Replace average with bill-derived rate when bills arrive.
4. If choice column is open, run state deregulation eligibility checker and read switching guide.

This sequence avoids using California averages for an Illinois build because someone bookmarked the wrong tab.