Home electricity cost 18.31 cents a kWh in July, up 4.9%, and EIA sees PJM wholesale power up 41%

The average U.S. household paid 18.31 cents per kilowatt-hour for electricity in July 2026, up from 17.45 cents a year earlier, a rise of 4.9%, according to the Energy Information Administration's Electric Power Monthly, released Sept. 24. EIA marks the figures as preliminary.

What the 4.9% is, and is not

It is an average of revenue divided by kilowatt-hours sold, not a rate card and not any family's bill. Bills also move with usage, local tariffs, fees and billing dates. A household's total can therefore move differently from the average price.

The wholesale forecast

In its October Short-Term Energy Outlook, EIA says wholesale prices at the 11 hubs it tracks will average about $52 per megawatt-hour in 2026, 11% above 2025. It attributes much of the rise to weather, including winter storm Fern and high summer temperatures, especially in July. The spread is wide: PJM is forecast up 41%, the largest increase, while Northwest Mid-Columbia is forecast down 23%.

That is a wholesale forecast, not a retail one. Retail rates also include transmission, distribution and capacity costs, and state regulators approve many of them. A national hub average cannot tell a customer in any one state what comes next.

DOE's pipeline announcement

On Oct. 19 the Energy Department announced up to $42 million in Defense Production Act Title III funding for Constitution Pipeline Company, LLC, for a proposed 125-mile natural gas pipeline from Pennsylvania to New York. DOE says the money can go to pre-construction and permitting work such as environmental review, engineering and site preparation.

DOE says the project will "dramatically lower" electricity and home heating costs. Its announcement does not give figures supporting that claim, and the pipeline has not been built. We have not seen an independent price analysis, and we did not contact DOE or the company.

What to watch

• EIA's next monthly electricity release, which will update the retail comparison.
• Whether the wholesale gap between PJM and the rest of the country shows up in state-approved retail rates.
• Permitting status, total cost and which customers could see any savings from the pipeline.

For business owners, electricity is a line item that varies by utility and tariff; check your own bill for the energy, demand and delivery charges rather than relying on a national average.

Sources: EIA Electric Power Monthly (July 2026 data); EIA Short-Term Energy Outlook, October 2026; U.S. Department of Energy, Oct. 19, 2026. This is a news brief based on published agency data. It is market information, not investment advice.