North Dakota consumers pay less for electricity than any other state in the country, according to a new report. 

The report by the American Legislative Exchange Council found North Dakotans paid an average of 7.93 cents per kilowatt hour for electricity in 2024, the most recent year of complete data. That’s 42% below the national average cost, the report said.

That affordability continued in 2025 and through January of this year, according to the U.S. Energy Information Administration. Monthly data on power prices show that while electricity cost slightly more last year compared to 2024, it was still cheaper in North Dakota than anywhere else in the country.

MDU Resources, one of the utilities that provide electricity in North Dakota, attributed the low rates to North Dakota’s commitment to “reliability, fuel diversity and sound energy policy.”

“This ranking underscores the value of a balanced, reliable energy mix and forward‑looking policies that keep electricity affordable for families, businesses and communities,” said Garret Senger, chief utilities officer for MDU Utilities Group, in a statement.

Stephanie Hoff, director of communications for Otter Tail Power, said the low cost of electricity in North Dakota stems from utilities’ commitment to providing “low cost, reliable service” to communities in the state.

“It really, truly is how we operate as electric utilities in the state of North Dakota, and it is the expectation of our regulators,” Hoff said.