What’s the Average Cost of Utilities, Really?

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One of the biggest factors when it comes to choosing where to live is the cost. And a significant percentage of that cost is taken up by utilities the basic services needed to keep your home functioning and comfortable. These include electricity, gas, water, sewer, trash, internet, phone, and streaming services.

If you’re planning to relocate, it’s important to know how much costs for utilities run on average. Not to mention, the state you’re moving to might have much higher or lower costs than the national average.  Read on for a full breakdown of utility costs nationally, state by state (link to table), and a bunch of tips on how to save money on your next bill.


The US National Average for Monthly Utility Costs 

The average monthly cost of natural gas

People rely on natural gas to heat their water, cook, dry their clothes, keep their homes warm, and more. The national average price of residential gas is $14.75 per thousand cubic feet, according to the U.S. Energy Information Administration (EIA).

a pair of hands putting sealant on a window, showing how plugging gaps with insulation can save on your natural gas utility costs

However, the amount you personally spend on natural gas depends on several factors, including which appliances in your home use gas to operate, how large your home is, and the actual rate your gas company charges.

Also, gas usage varies by time of year. If you live in a colder climate, you’ll be using significantly more natural gas during those months compared to someone living in a place that’s close to 70 degrees all year. Because of this, the national average can be a little misleading. Be sure to keep this in mind when estimating your costs.

  • The state with the highest monthly natural gas bill is Hawaii ($275.76)
  • The state with the lowest monthly natural gas bill is Idaho ($51.90)

How to save money on natural gas

  • Weather-proof your house: Look carefully for leaks around windows, doors, outlets, etc., so you can insulate better and rely less on heating.
  • Use space heaters: These can easily warm you up while sitting on the couch or in the office, instead of heating your whole house.
  • Get a smart thermostat: It can automatically adjust the temperature in your home when you’re away or sleeping.
  • Upgrade to energy-efficient appliances: Old and inefficient appliances (such as your furnace, water heater, or oven) could be using up more natural gas than necessary. Consider upgrading to energy-efficient models, which will save you money in the long run.

The average monthly cost of electricity

The EIA reports that the national average electricity rate was $0.1366 cents per kWh in 2021, which is the most recent data available. (FYI: A kilowatt-hour equals the amount of energy you would use by keeping a 1,000-watt appliance running for one hour.) That equates to an average monthly bill of $121.01.

 

“It might not seem like much water, but a faucet that lets out one drip per second wastes over 3,000 gallons a year.”

 

Much like natural gas, how big your electricity bill gets depends on where you live and what you do for a living. People who work from home can pay up to 10% more, since they’re using computers or other office equipment throughout the day. Those who live in hot climates also tend to have more expensive bills, since they typically run air conditioning and fans for longer periods.

However, some states have much cheaper electricity prices. So even if you end up someplace scorching hot, or you need to have a 3-monitor setup for your job, your bill might not be that bad in the end.

  • The state with the highest monthly electricity bill is Hawaii ($177.78)
  • The state with the lowest monthly electricity bill is Utah ($80.87)

How to save money on electricity

  • Unplug appliances that draw “phantom energy”: These appliances make up 23% of a household’s electricity use when they’re not in use; we’re talking toasters, coffee makers, computers, gaming consoles, phone chargers, and more.
  • Adjust the temperature of your refrigerator: The recommended setting is 35°-38°F.
  • Only run appliances when they’re full: Partially full dishwasher, washing machine, and dryer runs are killer on the wallet.
  • Switch to LED light bulbs: LED bulbs use 90% less electricity than traditional incandescent bulbs and last 25 times longer.

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The average monthly cost of water

Most people use a lot of water in their daily lives. There’s taking showers, brushing your teeth, watering the lawn, flushing the toilet, washing dishes and laundry, filling the dog’s bowl… you get the picture. And you might use a lot more water than you realize the average American household uses about 300 gallons of water per day.

a drawing of a person in a yellow bathrobe watering their lawn with a hose at night, showing that watering plants in the very early morning or late evening will prevent evaporation and save water Aside from water in your home, you also probably help pay for the maintenance of your city’s sewer system, and this cost can vary widely depending on where you live. They’re typically based on average household water use for your area, and will show up as a separate line item on your total water bill.

Compared to other utilities, the cost of water isn’t much. And if you rent, there’s a good chance your landlord foots this bill. But if not, it’s a good idea to know how much you might spend. The price of water has been increasing rapidly, and the average household water bill rose by 3.6% last year for a monthly bill of $72.93.

  • The state with the highest monthly electricity bill is West Virginia ($91)
  • The state with the lowest monthly natural gas bill is tied between Vermont and Wisconsin ($18)

How to save money on your water bill

  • Shorten your showers: Showering accounts for about 17% of residential water use.
  • Fix your leaky faucets (seriously): It might not seem like much water, but a faucet that lets out one drip per second wastes over 3,000 gallons a year.
  • Time your gardening right: Water your outdoor plants and lawn in the morning or evening rather than the middle (aka the hottest time) of the day so you don’t lose water to evaporation.
  • Install low-flow fixtures: Low-flow faucets, showerheads, and toilets can save a lot of water without compromising on performance.
  • Use a rain barrel: Collecting rainwater can be a great way to reduce your water usage for outdoor activities like watering plants or washing your car.

The average cost of waste services

Another utility bill that you may be responsible for is waste disposal. Often, the cost of waste removal is rolled into your water/sewage bill, factored into local taxes, or covered by your landlord, but not always. If you’re expected to foot the bill, here’s what you can expect to pay for various waste disposal services.

a drawing depicting a calendar showing that trash day is march first City trash pickup/residential garbage collection: This is the weekly garbage collection service provided that most people living in residential areas receive every week. It typically costs anywhere from $35 to $75 per month, depending on the size of your bins and the amount of waste that needs to be picked up.

Junk removal: Sometimes, you might be in a situation where you have large pieces of trash that can’t be collected by the weekly trash service. For instance, you might be moving and have some older pieces of furniture and appliances that need to be thrown away. In this case, you’ll need to schedule a one-time junk removal service and pay a fee.

The cost of a removal service will ultimately depend on the type and amount of waste you need removed. Prices typically range between $100 and $600, though you can expect to pay about $225 for residential junk removal, on average.

How to save money on waste services

  • Adjust your pick-up schedule: If you don’t produce a lot of trash, Google your city or township and find out if you can swap for a smaller trash bin, or have your garbage picked up less often (such as biweekly or monthly).
  • Separate glass and plastic: Take your cans, glass, and plastic containers to a recycling center, where you can get paid for them.
  • Compare pricing: If you have to pay a private company for trash pickup, shop around and see if you can find a lower rate.

The average cost of a cell phone plan

Considering that cell phones these days are an all-in-one computer, camera, GPS system, and…well, an actual phone, most people rely on one to get by in their daily lives. And companies know they’re willing to pay a good chunk of change to do so.

 

“People who work from home can pay up to 10% more [on electricity], since they’re using computers or other office equipment throughout the day.”

 

Like most utilities, the cost of cell phone service has been on the rise. In fact, the Consumer Price Index of telephone services has increased by 7% since Jan. 2019. According to JD Power, the average cell phone bill is now $144.

How to save money on your cell phone plan

  • Sign up for autopay or paperless billing: Many phone companies will knock $5 to $10 off your bill for having payments automatically deducted from your bank account or charged to a credit card, or for opting to receive your statements electronically.
  • Switch to a prepaid plan: These provide all the minutes and data you need for a lot less per month, by design.
  • Ask about discounts: Special discounts typically include ones for students, active duty and veterans, government workers, and employees of certain companies (ask your employer what phone discounts they have!).

The average cost of internet, cable, and streaming

It’s especially hard to get by without internet these days, considering how much we rely on it for work, school, news, and entertainment. And it’s a fairly substantial monthly cost, though as you might have guessed, it varies quite a bit. Factors that impact your internet costs include the type of connection, speed, and location.

Data compiled by Reviews.org found the average monthly price for various types of internet services as of 2021:

  • DSL: $51/mo.
  • Cable: $51/mo.
  • Fiber: $64/mo.
  • Satellite: $86/mo.
  • All connection types: $61/mo.

If you’re one of the few who has yet to cut the cord on cable, this is another potentially hefty bill to add to your budget. According to CableTV.com, prices range between $54.99–$250.00 per month, or an average of $83.35 per month.

a drawing of a cable connector twisted up in a knotFinally, you probably want to factor some at-home entertainment into your budget, whether that’s binge-watching Netflix shows or catching new releases on Amazon Prime. Today, streaming services are a standard part of overall utility costs. And while many subscriptions cost around $15 or less for basic plans, the rising number of platform-exclusive content means you probably subscribe to many.

The amount you ultimately spend on streaming will depend on how many services you subscribe to and at what tier. At premium tier, four popular streaming services (Netflix, HBO+, Hulu, and Disney+) will cost you $68 a month. Add in music services like Spotify and Apple Music, online game subscriptions, or Live TV, and you’re looking at a bill well over 100$.

How to save money on internet, cable, and streaming

  • Bundle when possible: If you haven’t already, ask your provider about bundle discounts since you can usually get a good deal by bundling your cable and internet service together. You can also save by bundling streaming services, such as the Disney bundle that includes Disney Plus, Hulu, and ESPN Plus.
  • Get your provider to match another rate: Look up quotes from competitors and ask if your provider will match a lower rate; they’d rather give you the discount than lose a customer. And if they won’t, just switch to the cheaper plan!
  • Get real about what you watch: Review your bill and cut extra services that you don’t use, such as premium channels you rarely watch.
  • Lower the screen quality: You can often opt for a plan with ads and/or lower resolution for less money.
  • See if you qualify for a free trial: If you buy a new phone plan, laptop, or smart device, find out if the service provider offers free trials of any streaming platforms.

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The State-by-State Breakdown of Utility Bills

National averages are well and good, but you might have noticed a pattern: the cost of your bill ultimately depends on where you live. Below, you’ll find a table outlining the cost of utilities in each state. If you know you’re moving to one in particular, take a look to see how much different it will be compared to your current costs.

Natural Gas Electricity Water Waste Phone Internet Streaming Total
US Average $88.50 $121.01 $72.93 $40.00 $144.00 $61.00 $78.00 $605.44
Alabama $109.68 $147.75 $30.00 $40.00 $144.00 $61.00 $78.00 $610.43
Alaska $63.36 $133.89 $68.00 $40.00 $144.00 $61.00 $78.00 $588.25
Arizona $98.46 $131.35 $64.00 $40.00 $144.00 $61.00 $78.00 $616.81
Arkansas $108.12 $123.69 $26.00 $40.00 $144.00 $61.00 $78.00 $580.81
California $136.62 $123.67 $77.00 $40.00 $144.00 $61.00 $78.00 $660.29
Colorado $78.30 $91.96 $39.00 $40.00 $144.00 $61.00 $78.00 $532.26
Connecticut $112.86 $156.21 $69.00 $40.00 $144.00 $61.00 $78.00 $661.07
Delaware $101.94 $118.85 $26.00 $40.00 $144.00 $61.00 $78.00 $569.79
District of Columbia $102.90 $92.42 $46.00 $40.00 $144.00 $61.00 $78.00 $564.32
Florida $159.42 $130.40 $33.00 $40.00 $144.00 $61.00 $78.00 $645.82
Georgia $90.48 $134.11 $28.00 $40.00 $144.00 $61.00 $78.00 $575.59
Hawaii $275.76 $177.78 $64.00 $40.00 $144.00 $61.00 $78.00 $840.54
Idaho $51.90 $97.62 $38.00 $40.00 $144.00 $61.00 $78.00 $510.52
Illinois $73.38 $95.86 $26.00 $40.00 $144.00 $61.00 $78.00 $518.24
Indiana $68.28 $126.51 $30.00 $40.00 $144.00 $61.00 $78.00 $547.79
Iowa $67.32 $109.63 $32.00 $40.00 $144.00 $61.00 $78.00 $531.95
Kansas $82.56 $115.53 $27.00 $40.00 $144.00 $61.00 $78.00 $548.09
Kentucky $89.58 $124.67 $49.00 $40.00 $144.00 $61.00 $78.00 $586.25
Louisiana $85.74 $131.37 $21.00 $40.00 $144.00 $61.00 $78.00 $561.11
Maine $120.54 $99.44 $24.00 $40.00 $144.00 $61.00 $78.00 $566.98
Maryland $105.66 $127.62 $46.00 $40.00 $144.00 $61.00 $78.00 $602.28
Massachusetts $139.62 $136.37 $34.00 $40.00 $144.00 $61.00 $78.00 $632.99
Michigan $71.82 $117.57 $29.00 $40.00 $144.00 $61.00 $78.00 $541.39
Minnesota $68.76 $104.76 $28.00 $40.00 $144.00 $61.00 $78.00 $524.52
Mississippi $82.92 $135.31 $23.00 $40.00 $144.00 $61.00 $78.00 $564.23
Missouri $81.18 $118.50 $39.00 $40.00 $144.00 $61.00 $78.00 $561.68
Montana $63.90 $97.84 $38.00 $40.00 $144.00 $61.00 $78.00 $522.74
Nebraska $74.28 $108.09 $23.00 $40.00 $144.00 $61.00 $78.00 $528.37
Nevada $78.60 $110.17 $26.00 $40.00 $144.00 $61.00 $78.00 $537.77
New Hampshire $149.10 $125.24 $27.00 $40.00 $144.00 $61.00 $78.00 $624.34
New Jersey $86.94 $112.39 $72.00 $40.00 $144.00 $61.00 $78.00 $594.33
New Mexico $68.10 $87.31 $32.00 $40.00 $144.00 $61.00 $78.00 $510.41
New York $100.50 $116.70 $30.00 $40.00 $144.00 $61.00 $78.00 $570.20
North Carolina $99.60 $120.38 $30.00 $40.00 $144.00 $61.00 $78.00 $572.98
North Dakota $63.06 $112.93 $31.00 $40.00 $144.00 $61.00 $78.00 $529.99
Ohio $68.40 $112.21 $27.00 $40.00 $144.00 $61.00 $78.00 $530.61
Oklahoma $72.78 $119.69 $35.00 $40.00 $144.00 $61.00 $78.00 $550.47
Oregon $81.06 $106.49 $76.00 $40.00 $144.00 $61.00 $78.00 $586.55
Pennsylvania $93.12 $117.11 $31.00 $40.00 $144.00 $61.00 $78.00 $564.23
Rhode Island $120.18 $130.40 $32.00 $40.00 $144.00 $61.00 $78.00 $605.58
South Carolina $76.08 $138.65 $33.00 $40.00 $144.00 $61.00 $78.00 $570.73
South Dakota $54.36 $124.50 $26.00 $40.00 $144.00 $61.00 $78.00 $527.86
Tennessee $69.96 $130.98 $43.00 $40.00 $144.00 $61.00 $78.00 $566.94
Texas $96.24 $132.40 $37.00 $40.00 $144.00 $61.00 $78.00 $588.64
Utah $70.68 $80.87 $38.00 $40.00 $144.00 $61.00 $78.00 $512.55
Vermont $98.10 $109.24 $18.00 $40.00 $144.00 $61.00 $78.00 $548.34
Virginia $97.38 $130.92 $36.00 $40.00 $144.00 $61.00 $78.00 $587.30
Washington $78.66 $99.45 $75.00 $40.00 $144.00 $61.00 $78.00 $576.11
West Virginia $76.26 $129.61 $91.00 $40.00 $144.00 $61.00 $78.00 $619.87
Wisconsin $74.10 $100.18 $18.00 $40.00 $144.00 $61.00 $78.00 $515.28
Wyoming $82.02 $96.82 $53.00 $40.00 $144.00 $61.00 $78.00 $554.84
Data for natural gas, electricity, and water. The cost of waste management was taken from an average. The cost of internet is the average of all possible types (broadband, fiber optic, satellite, etc.) of services. The streaming price was determined to be the total price of 4 major premium services (Netflix, Hulu, HBO+, and Disney+), in addition to a premium subscription to the music service Spotify.

Illustrations by Alissa Thaler

How to Inspect Wiring (Without Doing Much Work) Before Buying a Home

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Buying a new home can be exciting, but it can also be a prelude to spending money on things you weren’t expecting. From experience, this is typically where a house’s wiring comes up.

Not many young homeowners realize the importance of proper electrical wiring in a new home. It might be because electricals (e.g., wires, plugs, outlets, etc.) aren’t as obvious as the rest of the problems you may encounter.

I’ll explain the telltale signs of common electrical problems that will tip you off that your prospective new home has faulty wiring, and then what to do about it.

Bad Outlets

The most straightforward checks to perform when visiting a potential home is the electrical outlets. Ideally, they should be pristine, with no cracks within the plastic housing. They should also have a ground, since ungrounded outlets may present a fire hazard.

Grounded outlets are the ones that have a third prong (or hole). They act as a way to discharge excess electricity to the ground. 

If you’ve ever plugged in an appliance or device into a two-prong outlet and seen sparks jump out, you’d realize why they’re so dangerous! Electricity takes the easiest path to ground, and the grounded outlet gives electrical currents a simple, safe way to travel to earth. Ungrounded outlets do not have this extra safety precaution and could potentially lead to fire and injury in older homes.

How can I tell an outlet is bad?

Besides cracking, faulty outlets stand out because there may be a smoky smell hanging around them

This could be hidden by home sellers. How can you tell? The walls around the outlet may be lacking paint or might be newly painted and not match with the rest of the wall. When this happens, the repainting is usually done to cover a blackened wall which resulted from an electrical fire.

If these signs are present in one or two outlets, consult a professional electrician because it may be possible to fix the issues. However, if you see these signs in a handful of outlets, it’s a clue that the building’s wiring may be at fault. Cracked or broken wall plates may be replaceable, but it’s important to note that these may be signs of a larger problem. But being aware that the problem exists early on prevents potential long-term issues.

Word of caution: Replacing ungrounded outlets is not a DIY project. Enlist the help of a qualified electrician to run a ground wire to the electrical panel. Simply replacing a two-prong outlet with a three-prong outlet does nothing to fix the problem, and trying to ground a wire yourself is very hazardous.

Please use extreme caution when dealing with electrical wires.

How much does it cost to replace an outlet?

You can expect to pay anywhere from $100 to $200 to replace 2-prong outlets with 3-prong outlets. If the electrician needs to ground the wiring, then the costs will at least double.

Obsolete or Outdated Wiring

Some buyers see older houses as attractive antiques. However, from an electrician’s standpoint, older housing means older wiring. Old wiring has seen its share of use and is likely to be heavily weathered. Old wiring can be dangerous since they don’t follow the strictures of modern safety practices.

While you can plug your modern electrical appliances into sockets connected to older wiring, you’re taking a chance by doing so.

Knob-and-tube wiring

Believe it or not, there are still homes all over the US that use knob-and-tube wiring, which fell out of fashion in the 1930s. Knob-and-tube wiring is easy to spot because of the tell-tale ceramic spool-like knobs and the tubes that support single-strand wiring through joists. Knob-and-Tube wiring is considered to be an obsolete and unsafe method of wiring for residential properties. As the wires age, they tend to deteriorate, creating fire hazards throughout the house. Knob-and-Tube wiring also doesn’t typically support grounding, so they present a significant risk of electric shock.

Aluminum wiring

Alternatively, some relatively newer homes still use aluminum wiring, which was the norm in the ‘60s and ‘70s. While aluminum wiring doesn’t present a safety hazard when it’s been properly installed, when the wires age, they start to deteriorate, leading to similar problems that could become dangerous if left unchecked. Aluminum expands more than copper and the constant heating and cooling of the wires sometimes force them out of the screws used to connect them, leading to short circuits and risk of an electrical fire.

How can I tell if there is outdated wiring?

If you’re simply doing a home visit, keep your ears out and listen for potential buzzing noises. Older wiring may also release sparks from switches or outlets, so maybe try and plug something in (safely). If the person showing you the home notes that the property occasionally suffers from blown fuses or tripped breakers, it’s another clue about the wiring.

You can spot aluminum wiring by checking the electrical panel. If the wires are labeled with “AL”, “ALUM”, or “ALUMINUM,” you’re dealing with this type of wiring.

How much does it cost to upgrade electrical wiring?

If the wiring is obsolete, getting an electrician to rewire the house to current standards would be your only recourse. On average, you may have to pay anywhere from $1,500 to $10,000 (depending on the square footage of your home) to replace the old wiring. For some new homeowners, the expense just isn’t worth it.

Bad Electrical Panels

Electrical panels (or “breaker boxes”) are the heart of a home’s electrical system. Every electrical appliance in your home gets its power distributed through the electrical panel. Asking to see the breaker box can help you to gauge whether you’ll need to invest in repairs. 

How do I inspect an electrical panel/breaker box?

Electrical panels are often referred to as a “breaker box”

Ideally, the breaker box should be arranged neatly, with wires in their proper place. It should be easy to trace where they’re leaving the panel. If you find stray wires within the box, that’s a bad sign. Stray wires can lead to shorts, which may damage your electrical appliances.

Additionally, you should check that the lights are being appropriately supplied. If you find that the little lights inside the box are flickering, it may be a sign that the breaker box doesn’t have the right amperage. What does this mean? Amperage simply means the strength of the current in the circuit, and different homes have different needs when it comes to how much amps they can support. Modern homes that have 60-amp breakers need an upgrade since that’s too small a load to support modern appliances. Typically, newer homes would go for 100-amp or 200-amp installations. 

Old houses primarily relied on lower amperage for distribution. The rest of the world moved on, but those breaker boxes still use lowered amperage for their electrical needs. If the breaker box demonstrates fuses instead of circuit breakers, it’s definitely time for an upgrade. 

How much does it cost to upgrade a breaker box?

Upgrading a panel is a simple process, but might be time-consuming and take you off electrical supply for a few hours, at the very least. It could potentially cost you anywhere from $500 to $4,000 to upgrade or replace an electrical panel. This cost includes the cost of labor and depends on whether the box needs rewiring or if just a circuit or two needs replacing.

Safety in Lights and Switches

Electrical safety could save your life. Electricity is still a wild force, and while we’ve tamed it to a certain extent, we still have to be wary of its impact on our lives. 

How can I tell the house is using electricity safely?

GFCI outlets often have a little red button

You should keep an eye on the lights as you walk through the house for flickering. As I mentioned before, this might be due to a breaker box problem with amperage. However, it might also be due to any number of other unsafe electrical practices because of the original wiring.

Electrical outlets are also a huge tell. Listen for buzzing at electrical sockets, and take a whiff to see if there’s a burning or bleach-like scent. Either one could suggest bad wiring or that the wires on the inside are damaged and need to be replaced. Additionally, you should check to see that there are “Ground-Fault Circuit Interrupter” (or “GFCI”) outlets installed at appropriate locations. These outlets are designed to break a circuit if there’s a short, ensuring that you don’t accidentally become electrocuted. Lack of these sockets is a sign that the building probably isn’t up to code. 

Hiring an electrician to trace those problems is the only way you’ll figure out what’s causing it. The flickering may be subtle and isolated to one room or bathroom, but if it is extremely apparent (such as flickering in multiple or all rooms), then the problems with the electrical system may be dire.

How much does it cost to rewire a home?

Figuring out the amount it would take to upgrade the building and get the inspection certificate may lead you to decide not to invest in the home. On average, homeowners may expect to pay as much as $4,000 to rewire a 1,500-square-foot home. It may be a wise choice since poor electrical safety is a breeding ground for fires.

Still Unsure of the Soundness of the Home’s Electrical Work? 

If you’ve performed these inspections while walking through a prospective home and you’re still wary about the condition of the home’s electrical work, contact a local electrical contractor. The electrician can assess the safety of switches, outlets, and lights and can determine whether wires are grounded or outdated. An on-site inspection completed by a professional electrician can save you thousands of dollars in the long run

As a professional electrician, I’ve had the privilege of helping a lot of people rewire their new home purchases. Several of my past clients have raised the property value of their home by upgrading their electrical wiring. Not only does it make for more secure (and safer) circuitry, but it ensures that they can have peace of mind that their house won’t catch fire due to a power surge or a misplaced wire.

And If you’re intent on buying an older home, being aware of these issues before you sign on the dotted line is crucial. It’s also a great help to your electrician to let him or her know where to start fixing.


Bobby Lynn is the Owner of LiveWire Electrical, a fully licensed and insured residential electrical company serving Charlotte, NC and surrounding areas. Bobby has been in the electrical industry for over 20 years and has a vast knowledge of all things electrical. Learn more about LiveWire’s services here.
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