Tennessee's retail energy price is 19th in the nation and cheaper than half of its neighboring states, according to an analysis from the American Legislative Exchange Council.
The Energy Affordability 2026 report shows the Volunteer State's average price in cents is 10.60 per kilowatt hour, higher than Arkansas, which ranked 9th with a cost of 9.59. Kentucky also had a lower cost at 10.07
Four of Tennessee’s neighbors have higher costs. Alabama had the highest among the three states at 11.90, followed by North Carolina at 11.65, Georgia at 11.40 and Mississippi at 10.93, according to the report.

