Utility Costs Are Skyrocketing. These 5 States Will Feel It the Most

These figures will shock you, no pun intended.

Electricity costs rose 15.2% over the last year and natural gas rose a whopping 30.5%, according to the Bureau of Labor Statistics. Few people haven't noticed the extra drain on their wallets, but some are feeling it worse than others. Residents of the five states listed below especially may want to take action to keep their costs down.

These five states have the highest average utility costs in the U.S.

The following five states have the highest average utility costs in the country, according to the Missouri Economic Research and Information Center (MERIC):

1. Alaska (48.4% higher than the national average)
2. Hawaii (41.3% higher)
3. Connecticut (31.4% higher)
4. Rhode Island (25.8% higher)
5. California (25% higher)

Though not technically a state, Puerto Rico also has extremely high utility costs with rates 51.6% higher than the national average. 

It's unclear from the data if this is referring to the average bills residents of these states pay or just the average rate per kilowatt-hour for electricity and per hundred cubic feet for natural gas. If it's the latter, then residents of these states may not see unusually high utility bills unless they're using a lot of electricity or natural gas.

Costs can also vary depending on where a person lives within the state. In areas and seasons when there's high demand, costs are usually higher than they are in places where there's less demand.

How to avoid utility bill sticker shock

You can't control the prices set by the utility company, and unfortunately, it's not usually possible to shop around for a better rate with another company. But if you're willing to make an upfront investment, you could save on your long-term electricity costs by installing solar panels. However, this can require thousands of dollars and it may not be an option if you rent your home.

The best way to reduce utility costs is often just to use less. Turn off lights and electric appliances when they're not in use and drop or raise your thermostat a few degrees, depending on the season. 

If you work outside the home, consider dropping or raising the temperature even further while you're away. Lowering your thermostat by 7 to 10 degrees Fahrenheit for eight hours per day can save you 10% on your heating and cooling costs, according to the U.S. Department of Energy. This is easier to do if you get a programmable thermostat that lets you adjust your home's temperature from anywhere.

Another option to keep costs manageable is to get on a payment plan with your utility provider. This won't change what you owe, but it will spread your costs out evenly throughout the year so you don't have sky-high bills in winter. 

The utility company will estimate your annual cost based on the data it has from previous years and divide that by 12 to give you a regular monthly payment. Then, it'll recalculate this payment once per year. If costs were significantly underestimated, you may have to pay some extra at this time. But you could also see your bill drop if you're using less electricity and natural gas than expected.

Unless you dream of living off the grid, utility bills are a reality we all have to deal with. But it doesn't have to cost you a fortune. Try the tips above that make sense for you for a few months. You should notice a difference in your monthly bills.