Climate Costs: How Your Zip Code Shapes Your Power Bill – A Decade of Energy Price Trends by Climate Zone (2015–2025)

According to the U.S. Energy Information Administration (EIA), relative to prices in 2022, residential electricity costs are projected to climb 18% by 2026. As energy prices increase and extreme weather becomes more common, utility costs will continue to play a bigger role in your household finances. Based on the latest Cost of Living Index (COLI) 2025 first quarter data, where you live, especially your climate zone, can dramatically affect how much you pay to power your home.

We tracked the average Quarter 1 monthly energy bill of 135 urban areas from 2015 to 2025 by climate region. Climate regions are divided into seven zones (very cold, cold, marine, humid-mixed, hot-humid, hot-dry) based on the U.S. Department of Energy. Each climate zone experienced increases in average energy prices, but COLI data shows that more extreme climate zones tend to have higher energy bills.

Source: Building America Best Practices Series Volume 7.3 High-Performance Home Technologies: Guide to Determining Climate Regions by County

(Cold / Very Cold is separated into two climate regions: “Cold” and “Very Cold”. Hot-Dry/Mixed-Dry is combined into one: “Hot-Dry”)

Key Takeaways

• Very Cold regions (e.g., Alaska and North Dakota) bear the highest average energy bills, largely due to prolonged heating needs.
• Hot-Dry regions (e.g., parts of Arizona and Nevada) come next, where summer cooling dominates energy demand, followed closely by Marine regions (e.g. San Francisco, Portland, Seattle), which consist of West Coast cities associated with high cost of living.
• Mixed-humid regions have consistently reported lower utility costs compared to other climate zones. Located in lower cost of living states like Arkansas and Oklahoma, these areas generally avoid the extreme cold of the North and the intense heat of the South, leading to reduced overall energy consumption.

Conclusion

Climate not only affects your wardrobe or weekend plans — but it also influences your household expenses. This matters whether you’re relocating, budgeting, or evaluating salary offers from different parts of the country. It also adds an additional layer to how we think about affordability—not just by city, but by weather-driven cost patterns. So next time you look at your energy bill, remember: your climate zone might be doing more talking than your thermostat.

Note: COLI Index is not inherently a time series, but by controlling for participation it can be used as such.