Nevada Ranks Third-Lowest in Electricity Prices, 151% Cheaper Than California
Nevada ranks third-lowest in residential electricity prices at 12.57¢ a kilowatt-hour, below the national average of 17.62¢. Only Idaho (12.07¢) and Louisiana (12.46¢) are lower. Hawaii has the highest electricity rates in the nation at 38.90¢. California follows at 31.58¢, which is 151% higher than Nevada. The disparity in commercial electricity rates is even more pronounced: California's average rate of 29.31¢ is 197% higher than Nevada's 9.86¢.
Nevada enjoys low electricity costs thanks to its abundant geothermal, hydroelectric, and solar resources. Local generation reduces transmission needs and further lowers expenses. NV Energy, Nevada's primary electricity provider, serves 2.4 million residential and commercial customers statewide. The company formed in 1999 from the merger of Sierra Pacific Power and Nevada Power. NV Energy holds franchise agreements for a regulated monopoly in its service areas. Nevada's 2016 ballot initiative to end electric monopolies passed initially but failed on its second election in 2018 when voters rejected it, preserving NV Energy's monopoly due to its low prices and high reliability.
NV Energy is regulated by the Nevada Public Utilities Commission (PUCN), which oversees utilities providing electricity, natural gas, telecommunications, and water. The PUCN originated as Nevada's Public Service Commission in 1911, merging with Nevada’s Railroad Commission. In 1919, duties were consolidated under a single body, which was renamed in 1997 after the transfer of transportation regulation responsibilities. The PUCN consists of three commissioners, appointed by the governor to four-year terms. Each must have relevant experience and no more than two can share the same political party or profession. Its role is to ensure fair rates and safe, reliable service. It interacts with NV Energy by reviewing rate-increase applications, resource plans, service standards, and infrastructure projects.
In 2025, NV Energy requested a $215.7 million rate increase from the PUCN to meet demand from data centers, electric vehicles, and industrial growth. The proposal funds solar, battery storage, and natural gas capacity to support Nevada's 50% renewables by 2030 and 100% carbon-free by 2050 goals. The PUCN partially approved NV Energy’s request, denying a 9% overall rate increase and basic service charge hikes, but approved a new daily peak demand charge. As a result, Southern Nevada residential customers will see increases in 2026.
The bipartisan PUCN, as designed, consistently prioritizes consumer energy costs and the impact of rates on Nevadans and the state's economy. Even with new peak demand charges, Nevada's low rates draw data centers, EV manufacturing, and industries, creating jobs and tax revenue. Affordable power advances renewable goals and strengthens economic competitiveness.
