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ElectricityRatePerKWh

Electricity Rate in Alabama (2026): 16.40c/kWh Average

The EIA residential electricity price in Alabama is 16.40 cents per kWh as of June 2026, 1.94c below the US average of 18.34c/kWh. The Alabama commercial rate is 14.67c/kWh and the industrial rate is 7.92c/kWh (EIA Electric Power Monthly, Table 5.6.A).

Residential Rate
16.40ยข
per kWh
vs US Avg
-11%
1.94c below
Avg Monthly Bill
$184
1144 kWh
Provider Choice
No
Regulated monopoly

Alabama Electricity Rate: What You Need to Know

Alabama electricity averages 16.40 cents per kWh for residential customers as of June 2026, according to the EIA Electric Power Monthly. This is 1.94c below the US average of 18.34c/kWh. The average monthly bill for Alabama households is $184 based on typical usage of 1144 kWh.

Generation mix: Natural gas 50%, nuclear 20%, coal 15%, renewables 15%. The fuel mix is a primary driver of electricity rates - states with abundant hydro or nuclear tend to have lower rates, while states dependent on imported petroleum (Hawaii) or natural gas pay more.

Year-over-year change: Alabama rates rose 2.1% year-over-year as of June 2026. This compares to the US average increase of 5% over the same period.

Regulated: You Cannot Switch Electricity Suppliers

Alabama Power operates as the regulated utility in Alabama. Retail electricity choice is not available for residential customers. Options for reducing your bill include: time-of-use rate optimization, energy efficiency upgrades, and rooftop solar.

Your Alabama Electricity Bill Components

Energy charge (1144 kWh x 16.40c)$187.62
Fixed customer charge (estimated)~$10.00
Estimated monthly total$197.62
Alabama Rate by Sector - June 2026
Residential (US 18.34c)16.40c
Commercial (US 14.19c)14.67c
Industrial (US 9.17c)7.92c
Source: EIA Electric Power Monthly, Table 5.6.A.
Dominant Utility
Alabama Power
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Adjacent States
Georgia16.36c
Florida15.10c
Tennessee14.07c
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Electric Utilities in Alabama: 62 Listed (2024 EIA-861)

EIA's Form 861 census records 62 entities with 2024 retail electricity sales in Alabama: 46 distribution utilities filing the full form, 16 small utilities filing the short form (EIA-861S). By ownership: 36 municipal, 24 cooperative, 1 investor owned, 1 federal. The state-wide average realised residential price in 2024 was 15.18 cents per kWh across 2,398,172 residential customers and 32,899,071 MWh of sales; EIA's latest monthly figure is 16.40c (June 2026). The largest utility by residential accounts served (bundled plus delivery-only) is Alabama Power Co with 1,332,911 (16.77c per kWh, 54.9% of state residential sales by MWh). 44 of the 46 distribution utilities have a detail page; the rest are listed here only.

Distribution utilities (46), ranked by residential accounts served (bundled + delivery-only), 2024; residential price = bundled service where offered
#UtilityOwnershipRes. accountsResidentialCommercialCounties
1Alabama Power CoInvestor Owned1,332,91116.77c14.84c59
2City of Huntsville (AL)Municipal197,53711.45c11.09c1
3Baldwin County El Member CorpCooperative83,00513.87c11.04c2
4City of Athens (AL)Municipal50,98512.24c11.69c1
5Foley Board of UtilitiesMunicipal50,95413.48c11.79c1
6Central Alabama Electric CoopCooperative45,03616.64c13.80c10
7City of Florence (AL)Municipal41,59411.61c12.31c1
8Cullman Electric Coop, IncCooperative39,77913.26c14.18c4
9Joe Wheeler Elec Member CorpCooperative36,97314.49c14.13c2
10Tallapoosa River Elec Coop IncCooperative29,57814.39c12.92c8
11Sand Mountain Electric CoopCooperative27,29812.55c13.60c3
12City of Dothan (AL)Municipal26,75210.72c10.64c2
13Covington Electric Coop, IncCooperative23,28116.65c13.51c6
14Decatur UtilitiesMunicipal22,82011.15c11.01c1
15Wiregrass Electric Coop, IncCooperative22,40115.45c14.85c6
16Dixie Electric Coop (AL)Cooperative22,05415.05c14.58c8
17Southern Pine Elec Coop, IncCooperative20,64513.90c11.32c5
18Black Warrior Elec Member CorpCooperative20,05313.24c12.17c12
19Cherokee Electric Coop (AL)Cooperative18,83015.06c17.50c5
20Clarke-Washington E M CCooperative18,70815.76c14.75c4
21Marshall-De Kalb Electric CoopCooperative17,31812.49c12.74c3
22South Alabama Elec Coop, IncCooperative16,80115.44c14.41c8
23Sheffield UtilitiesMunicipal15,66312.35c14.16c1
24Coosa Valley Electric Coop IncCooperative15,61215.71c19.13c6
25Pea River Electric CoopCooperative14,92216.77c16.99c4
26Arab Electric Coop IncCooperative14,06211.96c12.30c2
27City of Opelika (AL)Municipal13,55512.83c11.70c1
28North Alabama Electric CoopCooperative13,09912.83c14.83c2
29City of Bessemer UtilitiesMunicipal9,37812.26c12.68c1
30Albertville Municipal Utilities BoardMunicipal8,31810.67c11.06c1
31City of Troy (AL)Municipal7,8559.66c9.16c1
32City of Muscle ShoalsMunicipal7,15411.96c12.34c1
33City of Scottsboro (AL)Municipal7,09012.87c11.88c1
34Cullman Power BoardMunicipal7,04912.64c12.25c1
35Fort Payne Improvement AuthorityMunicipal6,92212.14c12.03c1
36Franklin Electric Coop (AL)Cooperative5,97914.03c9.77c2
37Guntersville Electric BoardMunicipal4,87512.80c12.81c1
38City of HartselleMunicipal4,62912.14c11.83c1
39City of TuscumbiaMunicipal4,03811.81c13.09c1
40City of Russellville (AL)Municipal3,89013.25c13.55c1
41City of AndalusiaMunicipal3,60515.78c17.02c1
42City of TarrantMunicipal2,06913.45c14.04c1
43Diverse Power Incorporatedalso GACooperative58917.27c21.59c1
44City of CourtlandMunicipal55111.91c10.34c1
45Singing River Elec Cooperativealso MSCooperative33613.34c12.33c2
46Tennessee Valley Authorityalso TN, KY, MS, NCFederal0n/a7.23c-
Small utilities filing the EIA-861S short form (16): totals across all sectors, no residential split+
UtilityOwnershipCustomers (all)Avg price (all)Counties
Pioneer Electric Coop, Inc (AL)Cooperative12,87320.36c9
Tombigbee Electric Coop, IncCooperative9,57617.07c3
City of Fairhope (AL)Municipal7,0179.64c1
City of TuskegeeMunicipal6,68812.26c1
Sylacauga Utilities BoardMunicipal6,0618.49c1
City of Alexander CityMunicipal5,65710.43c1
City of RobertsdaleMunicipal3,51011.20c1
City of Lanett (AL)Municipal3,37018.11c1
City of Opp (AL)Municipal3,2068.83c1
City of Elba (AL)Municipal3,00411.99c1
City of Piedmont (AL)Municipal2,11212.70c1
City of Luverne (AL)Municipal1,8306.73c1
City of Evergreen (AL)Municipal1,80113.83c1
City of Hartford (AL)Municipal1,41616.03c1
City of Lafayette (AL)Municipal1,33711.61c1
City of Brundidge (AL)Municipal1,23912.94c1
Source and method

Source: U.S. Energy Information Administration, Form EIA-861 Annual, 2024 final data (public domain), retrieved 28 August 2026; prices are average realised revenue per kWh, not tariffs. Final 2024 file f8612024.zip (released 3 December 2025) from the EIA-861 detailed data files. Preliminary 2025 figures come from the early-release file f8612025er.zip (4 August 2026), which EIA has not yet validated; they are labelled as such wherever shown and never mixed into a final figure.

Alabama Electricity: Frequently Asked Questions

What is the electricity rate in Alabama in 2026?+
The average residential electricity rate in Alabama is 16.40 cents per kWh as of June 2026, according to the EIA Electric Power Monthly. This is 1.94c below the US average of 18.34c/kWh (-11%). The average monthly electricity bill in Alabama is approximately $184 based on 1144 kWh typical monthly usage.
What is the commercial electricity rate in Alabama?+
The average commercial electricity rate in Alabama is 14.67 cents per kWh as of June 2026, according to the EIA Electric Power Monthly (Table 5.6.A). That compares with the US commercial average of 14.19c/kWh. Commercial rates apply to businesses, offices, schools, and retail. They are usually lower per kWh than residential rates, but a commercial bill can still be much larger because of higher volume and demand charges.
What is the industrial electricity rate in Alabama?+
The average industrial electricity rate in Alabama is 7.92 cents per kWh as of June 2026, according to the EIA Electric Power Monthly (Table 5.6.A), versus a US industrial average of 9.17c/kWh. Industrial customers such as factories, manufacturers, and large facilities pay the lowest per-kWh price of the three EIA sectors because they buy power at high volume, often at higher voltage, under demand-based rate structures.
Can I switch electricity providers in Alabama?+
No - Alabama operates a regulated electricity market. Alabama Power serves as the regulated monopoly utility. Customers cannot switch electricity generation suppliers. Options for reducing bills include time-of-use rate optimization (where available), energy efficiency upgrades, and solar installation.
What is the average monthly electricity bill in Alabama?+
The average Alabama household uses approximately 1144 kWh per month. At 16.40c/kWh plus approximately $10 in fixed charges, the average monthly bill is $184. This varies by season (higher in summer for cooling-dominant states like Alabama, higher in winter for heating-dominant states).
What is the primary electricity source in Alabama?+
Alabama's generation mix is primarily Natural gas 50%, nuclear 20%, coal 15%, renewables 15%. This fuel mix is a key factor in the state's electricity rate - states relying on hydro or nuclear typically have lower rates, while states heavily dependent on natural gas or petroleum (like Hawaii) face higher costs.
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