Alabama Power Co electricity rates

It is the dominant supplier in Alabama, serving 1.3 million residential customers, so its pricing effectively sets what the state average looks like. At 16.77¢ per kilowatt-hour it tracks the Alabama average of 16.77¢ closely, which is what you would expect from a utility large enough to shape that average itself.

Its customers use more electricity than the national norm, 1,129 kilowatt-hours a month against 871, which amplifies whatever the rate does.

A shareholder-owned company whose rates are set by the state regulator, including an approved return on the capital it has invested. That matters because a bill is not only the cost of generating electricity: it also carries the cost of the network, and who owns that network changes how it is paid for.

In 2024 the average Alabama Power Co customer went 334 minutes without electricity across 2.04 interruptions. The median across the 941 utilities that report this is 185 minutes.

That is worse than typical. Overhead lines through wooded or storm-exposed terrain are the usual explanation, and the fix is vegetation management and circuit automation, both of which are recovered through rates.

Alabama Power Co offers time-of-use pricing and critical peak pricing to residential customers. 4,650 households were enrolled, about 0.3% of its residential base.

These plans are opt-in almost everywhere. They reward households that can move laundry, dishwashing, water heating or electric vehicle charging out of the late-afternoon peak, and they cost more than the standard rate for households that cannot. How to tell which group you are in.