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.
Where Alabama power comes from
Alabama generated 142 TWh in 2025, the 8th largest output of any state. Natural gas supplied 45.6% of it. Renewables accounted for 9%, against 23.8% nationally, which ranks Alabama #41 of 51.
- Natural gas 45.6% 65 TWh
- Nuclear 30% 43 TWh
- Coal 15.3% 22 TWh
- Hydroelectric 5.8% 8 TWh
- Wood and biomass 2.3% 3 TWh
- Solar 0.9% 1 TWh
Source: U.S. Energy Information Administration, Electric Power Operational Data, net generation, all sectors. Net generation across all sectors. Nuclear counts as carbon-free but not renewable, so the two shares differ.
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 Alabama households actually pay
Alabama looks cheaper on paper than it is in practice. It has the 28th cheapest rate in the country but only the 4th highest bill from the bottom, because households there use 1,128 kWh a month against a national average of 871. See how every state compares on bills.
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.
Heating in Alabama: gas, heat pump or resistance
Residential natural gas in Alabama averaged $18.63 per thousand cubic feet in 2024, about $1.80 per therm, against a national average of $14.50. Put on the same scale as the state's electricity rate, the cost of delivering one million BTU of heat works out as follows.
In Alabama, a heat pump is cheaper to run than a gas furnace by about $3.59 per million BTU at these assumptions. Over a 60 million BTU heating season that is roughly $215, before counting the cooling a heat pump also provides.
Gas price: U.S. Energy Information Administration, Natural Gas Prices, price delivered to residential consumers, 2024. Assumptions are adjustable in the heating cost guide, and every state is compared on the gas price page.
What each Alabama utility charges
The statewide average hides a wide spread. Across the 42 Alabama utilities reporting to the EIA, rates run from 9.66¢ at City of Troy to 16.77¢ at Alabama Power Co . Together they serve 2.3 million residential customers.
| Utility | ¢/kWh | Bill | kWh | Customers |
|---|---|---|---|---|
| Alabama Power Co | 16.77 | $189 | 1,129 | 1.3 million |
| City of Huntsville | 11.45 | $134 | 1,173 | 197,537 |
| Baldwin County El Member Corp | 13.87 | $156 | 1,126 | 83,005 |
| City of Athens | 12.24 | $139 | 1,137 | 50,985 |
| Foley Board of Utilities | 13.48 | $167 | 1,236 | 50,954 |
| Central Alabama Electric Coop | 16.64 | $194 | 1,164 | 45,036 |
| City of Florence | 11.61 | $148 | 1,273 | 41,594 |
| Cullman Electric Coop, Inc | 13.26 | $164 | 1,239 | 39,779 |
| Joe Wheeler Elec Member Corp | 14.49 | $195 | 1,343 | 36,973 |
| Tallapoosa River Elec Coop Inc | 14.39 | $166 | 1,156 | 29,578 |
| Sand Mountain Electric Coop | 12.55 | $148 | 1,176 | 27,298 |
| City of Dothan | 10.72 | $126 | 1,175 | 26,752 |
| Covington Electric Coop, Inc | 16.65 | $189 | 1,135 | 23,281 |
| Decatur Utilities | 11.15 | $131 | 1,172 | 22,820 |
| Wiregrass Electric Coop, Inc | 15.45 | $189 | 1,222 | 22,401 |
| Dixie Electric Coop | 15.05 | $177 | 1,179 | 22,054 |
| Southern Pine Elec Coop, Inc | 13.90 | $147 | 1,061 | 20,645 |
| Black Warrior Elec Member Corp | 13.24 | $147 | 1,111 | 20,053 |
| Cherokee Electric Coop | 15.06 | $168 | 1,117 | 18,830 |
| Clarke-Washington E M C | 15.76 | $155 | 984 | 18,708 |
| Marshall-De Kalb Electric Coop | 12.49 | $155 | 1,241 | 17,318 |
| South Alabama Elec Coop, Inc | 15.44 | $158 | 1,021 | 16,801 |
| Sheffield Utilities | 12.35 | $154 | 1,246 | 15,663 |
| Coosa Valley Electric Coop Inc | 15.71 | $190 | 1,212 | 15,612 |
| Pea River Electric Coop | 16.77 | $192 | 1,145 | 14,922 |
Showing the 25 largest of 42. Utilities with fewer than 1,000 residential customers are not published.
Source: U.S. Energy Information Administration, Form EIA-861 annual electric power industry report, 2024.
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.
Alabama sits in The Southeast. Vertically integrated utilities, no retail choice, moderate rates and the highest household consumption in the country. Read the regional analysis.
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 the average monthly electric bill in Alabama?
The average Alabama household paid $185 a month across the twelve months to May 2026, using an average of 1,128 kWh. That is +18.7% against the U.S. average bill of $155, and it ranks 4th highest of the 51 jurisdictions. Your own bill depends on the size of your home, your heating and cooling equipment and your rate schedule.
Why is the Alabama bill ranking different from its rate ranking?
A bill is the rate multiplied by usage, and usage varies between states more than price does. Alabama ranks #24 of 51 on price but 4th on the actual bill, because households there use about 1,128 kWh a month against a national average of 871. Climate and heating fuel drive most of that difference.
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.