Where does your state rank on this month’s Choose Energy Business Electricity Index?
Oklahoma ranks first in the October Choose Energy Business Electricity Index
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The blended Business Electricity index gives some insight into the strength of a state’s business infrastructure and its desirability as a recruiting destination, though other factors also play a role.
Based on an analysis of July 2020 data compiled by the U.S. Energy Information Administration, Oklahoma claims the top spot in the rankings by virtue of having the lowest average rates for industrial electricity – 4.76 cents per kilowatt hour (kWh), and the third- and fourth-lowest residential electricity and commercial electricity rates at 10.12 and 7.87 cents/kWh, respectively.
Louisiana finished second in the index, by virtue of having the second-lowest industrial rate, the seventh-lowest commercial rate, and the lowest residential rate.
How the Business Electricity Index is calculated
ChooseEnergy.com data analysts crunched the numbers on electricity prices by state to find an index that gives the best representation of electricity needs for businesses. Our index includes equally weighted values for commercial and industrial electricity based on monthly state average prices as calculated by the U.S. Energy Information Administration. State average residential electricity prices also are included, because a company’s employees have to live somewhere, but they are given a much lower weight in the index.