Alabama electricity rates
As of May 2026, the average residential electricity rate in Alabama is 16.77 cents per kilowatt-hour, 9.1% below the U.S. average of 18.44¢. That is the 24th highest rate of the 50 states and the District of Columbia.
- Year over year
- ▲ +3.8% from 16.15¢ in May 2025
- Vs. U.S. average
- -9.1% U.S. average 18.44¢
- National rank
- #24 of 51 · #28 cheapest
- Supply market
- Southeast (non-RTO) / TVA Regulated monopoly
Why Alabama pays what it pays
Alabama is one of the more balanced generation states in the country. Alabama Power operates a large hydro system on the Coosa and Tallapoosa rivers, shares in nuclear generation, runs modern combined-cycle gas plants, and retains some coal. TVA serves the north of the state from its own diversified fleet. That mix means no single fuel price dominates the bill.
The state's rate sits slightly below the national average and has moved modestly. Alabama Power's rates are adjusted through a set of formula mechanisms rather than periodic full rate cases, which produces smaller, more frequent changes and a smoother path than states that litigate large cases every few years.
Summer cooling load is high, and the state's residential usage per household is among the highest in the country, so an average-looking rate still produces a large bill.
How Alabama compares
Alabama ranks #24 of 51 jurisdictions by residential price, making it the 28th cheapest. Within the East South Central division, every other state is cheaper.
| State | ¢/kWh | YoY | Rank |
|---|---|---|---|
| Tennessee | 14.47 | +5.4% | #40 |
| Kentucky | 14.98 | +8.2% | #36 |
| Mississippi | 16.16 | +8.9% | #29 |
| Alabama | 16.77 | +3.8% | #24 |
Source: U.S. Energy Information Administration, Electric Power Monthly, Table 5.6.A: Average Price of Electricity to Ultimate Customers by End-Use Sector, by State. Data period May 2026. Retrieved 2026-08-19.
What a bill looks like at this rate
The figures below apply the May 2026 Alabama average to four usage levels. They are arithmetic, not quotes. A real bill also carries fixed customer charges, taxes and any rider specific to your utility.
Estimate your Alabama bill
Multiply your own usage by the May 2026 state average. Enter the kilowatt-hours from your last statement. This is a supply-and-delivery blended average, not a utility quote.
Rate used: …. U.S. average 18.44¢/kWh, May 2026. Source: U.S. Energy Information Administration, Electric Power Monthly Table 5.6.A.
Who sells electricity in Alabama
Alabama Power, a Southern Company subsidiary, serves most of the state. TVA supplies northern Alabama through local distributors including Huntsville Utilities, and electric co-operatives serve much of the rural south.
There is no residential retail choice. The Alabama Public Service Commission regulates Alabama Power through formula rate mechanisms, and TVA distributors operate under federal contracts.
What you can actually do about it
Alabama's high per-household usage means efficiency work returns more here than the rate alone suggests. Duct sealing and attic insulation are the standard high-return items in the Southeast's building stock.
Budget billing options smooth seasonal swings but do not reduce the total. They help cash flow, not cost.
Closest states by price
These jurisdictions charge within a fraction of a cent of Alabama, which is useful if you are comparing a move or a multi-state operating cost.
Alabama electricity rates: common questions
What is the average electricity rate in Alabama?
The average residential electricity rate in Alabama is 16.77 cents per kilowatt-hour as of May 2026, according to the U.S. Energy Information Administration. That is -9.1% relative to the national average of 18.44¢/kWh.
How much is a typical monthly electric bill in Alabama?
At the May 2026 average rate of 16.77¢/kWh, a household using 900 kWh a month would pay about $151, and one using 1,500 kWh about $252. Actual bills vary with usage, rate schedule, fixed customer charges and taxes.
Have electricity rates in Alabama gone up?
Alabama rates rose 3.8% over the year to May 2026, from 16.15¢ in May 2025 to 16.77¢.
Can I choose my electricity supplier in Alabama?
Regulated monopoly. Alabama households buy both supply and delivery from their local regulated utility or co-operative; there is no competitive residential supplier market.
Where does this Alabama rate figure come from?
It is the residential-sector average revenue per kilowatt-hour reported by utilities to the U.S. Energy Information Administration on Form EIA-861M and published in the Electric Power Monthly, Table 5.6.A. It blends supply and delivery across every residential customer in the state, so it is a statewide average rather than a quote for any individual household.