Get ready to crank up your air conditioner, Connecticut residents — and your utility budget.
With July tending to be the hottest month of the year on average, the news that Connecticut has the highest energy costs in the nation according to the personal financial website WalletHub, turning up the air could burn a hole in most residents' wallets.
Typically, energy costs eat between 5 and 22 percent of families’ total after-tax income, with the poorest residents paying the highest of that range. For instance, electricity might be cheap in southern Louisiana, but the state's scorching summer temperatures could still result in higher costs than, say, the more temperate and expensive Northern California, where air conditioners aren't needed most of the year, said WalletHub.
To better understand the impact of energy on finances, WalletHub conducted an in-depth analysis of 2016's Most & Least Energy-Expensive States in which it compared the average monthly energy bills in each of the 50 states and the District of Columbia using a special formula that accounts for the following residential energy types: electricity, natural gas, motor fuel and home heating oil.
When all the numbers shook out, Connecticut came in as the most expensive state in the country for overall energy costs of $404 a month.
How the state ranked in other energy areas:
- Price of electricity -- 11th place.
- Price of natural gas -- 30th place.
- Natural gas consumption per consumer -- 14th place.
- Price of motor fuel -- third place.
- Price of home heating oil -- second place.
The least expensive state was Washington with an average monthly energy bill of $218.