Memphis has the lowest utilities in the state, according to a recent analysis from MLGW.
The largest three-service municipal utility system in the nation, MLGW delivers electricity, natural gas and water throughout Memphis and Shelby County. Historically, Memphis has had some of the lowest winter utility bills in the country.
The study, done by MLGW, measures 40 cities including many that are geographically close to Memphis, as well as utilities that are similar in size to MLGW. All costs covered in this survey are based on published rates effective January 2026 for the year 2025 and the 2025-2026 winter season.
The 2026 ranking includes what a homeowner would pay for 1,000 kilowatt-hours (kWh) of electricity, 200 cubic feet (CCF) of gas and 10
CCF of water.
Here is what the study found.
Memphis has the cheapest utilities among Tennessee's major cities
According to MLGW, winter utility bills from 2025 were the cheapest in Memphis. Between Memphis and Knoxville, the most expensive of the measured Tennessee cities, there was a difference of more than $150.
- Memphis: $304.02
- Jackson: $375.02
- Chattanooga: $424.53
- Nashville: $454.28
- Knoxville: $460.62
How do MLGW rates compare to other cities?
MLGW covers a total population of 929,755, which includes 633,104 residents from Memphis and 296,640 from Shelby County. In 2025, Memphis residents on average saved approximately $400 on their utility bills annually between electricity, gas and water.
Memphis electricity users saved $562 compared to the typical utility user in the United States in 2025. A typical MLGW residential electric customer spent about 13 cents per kilowatt hour (kWh), whereas a typical U.S. user spent 17 cents per kWh.
Gas users in Memphis saved $415 compared to a typical utility user in the U.S. A typical MLGW residential gas customer spent about $8.76 per one thousand cubic feet (MCF), whereas a typical U.S. user spent $15.34 per MCF.
Here is the price for typical utility bills in Memphis over the last ten years:
- 2026: $304, No. 2 in MLGW ranking
- 2025: $287, No. 1 in MLGW ranking
- 2024: $246, No. 1 in MLGW ranking
- 2023: $254, No. 1 in MLGW ranking
- 2022: $292, No. 2 in MLGW ranking
- 2021: $234, No. 2 in MLGW ranking
- 2020: $227, No. 1 in MLGW ranking
- 2019: $261, No. 3 in MLGW ranking
- 2018: $227, No. 1 in MLGW ranking
- 2017: $236, No. 2 in MLGW ranking
Which cities have the cheapest utilities according to the study?
Memphis has remained in the top three of MLGW's annual study for the past decade, but this 2026 marks the first year since 2022 that Memphis was not No. 1.
Of the 40 measured cities, these are the least expensive:
- Reno, Nevada: $269.48
- Memphis, Tennessee: $304.02
- Omaha, Nebraska: $324.07
- Oklahoma City, Oklahoma: $340.42
- Springfield, Missouri: $342.11
- Indianapolis, Indiana: $355.38
- Salt Lake City, Utah: $366.76
- Las Vegas, Nevada: $369.44
- Jackson, Tennessee: $375.02
- Huntsville, Alabama: $387.64
Jordan Green covers trending news for The Commercial Appeal. She can be reached at jordan.green@commercialappeal.com.
This article originally appeared on Memphis Commercial Appeal: Memphis has Tennessee's lowest utility bills, MLGW study finds
