Wholesale vs retail electricity prices

Why a wholesale market price is different from the rate on your household electricity bill.

Two different transactions

Wholesale prices describe electricity traded in markets. Retail prices describe electricity sold to customers. The EIA monthly state series is an average revenue per unit sold, not a plan you can sign up for.

Keep the units straight

A wholesale quote of $50/MWh is equivalent to 5 cents/kWh in units alone. That conversion does not turn the market quote into a household tariff.

Compare like with like

Use the same month and customer sector when comparing state averages. For a home estimate, start with your own tariff. Check fixed fees, usage tiers and time-of-use periods before comparing a calculated number with a bill.