KWh Desk

Commercial electricity rates in Tennessee

What businesses in Tennessee actually paid per kilowatt-hour, from EIA's monthly utility filings. Updated monthly.

13.13¢per kWh
Average commercial price, August 2026 · 9% below the US average of 14.47¢ · up 2.1% from August 2025

The last 36 months

Range over the period shown: 11.43¢ to 14.54¢ per kWh. Each point is a monthly state average, not an offered rate.

Tennessee by the numbers

Commercial accounts
572,986
billed in August 2026
Commercial sales
3,716M kWh
total for August 2026
Average use per account
6,485 kWh
computed: sales divided by accounts, August 2026
Commercial revenue
$488.0M
total for August 2026
Share of US commercial sales
2.5%
computed, August 2026
Rank of 51
#25
1 = cheapest

How commercial compares with other sectors

SectorPrice per kWh
Commercial13.13¢
Residential13.42¢
Industrial6.92¢

All figures are August 2026 averages for Tennessee.

Commercial customers in Tennessee pay 2% less per kWh than households there. Nationally the commercial price sits 20% below residential, so the gap here is narrower than usual.

A monthly average of what was actually billed, not a rate on offer — how it is calculated. Your own rate class and demand charges will differ; your state regulator is the authority on them.

What this costs a typical account

The average commercial account in Tennessee used 6,485 kWh in August 2026. At 13.13¢ per kWh that is about $851 for the month — computed from EIA totals, so it is the average account, mixing a large facility with a corner shop.

How the price has moved

Over the 36 months to August 2026, Tennessee's commercial price rose 13.1%, from 11.61¢ in September 2023 to 13.13¢. The high point was 14.54¢ in March 2026 and the low 11.43¢ in May 2024 — a spread of 27% between the cheapest and dearest month, which is unusually volatile for a state-level average.

Across the same period the dearest month on average was March (13.51¢) and the cheapest October (11.93¢), a seasonal swing of 13%.

Tennessee against its region

Tennessee is in EIA's East South Central division, where the commercial average was 13.41¢ in August 2026. Tennessee is 2% below that, and 2 of 4 on price within the region.

Others in the region: Kentucky, Mississippi, Alabama.

States priced near Tennessee

State¢/kWhRank
Missouri12.63¢23
Arizona13.05¢24
Indiana13.29¢26
Minnesota13.41¢27

Source

EIA Electric Power Monthly, retrieved 2026-11-02 · methodology · all 51 states