Alabama Power Electricity Rate per kWh in 2026
How much does Alabama Power charge per kWh in 2026?
Alabama Power’s estimated effective residential rate is about 16.18 cents per kWh as of June 2026. A typical home using 1,000 kWh a month pays roughly $176, including the about $15 monthly customer charge. Commercial service runs about 13.00c/kWh. This is a representative average; your exact rate depends on the tariff, season, and fuel and rider charges on Alabama Power’s official rate schedule.
2026 published rate: Alabama Power is the dominant electric utility across central and southern Alabama, serving about 1.5 million customers, so the Alabama rate most people search for is its residential price. Its standard residential plan is Rate FD (Family Dwelling), which bills a fixed base charge of $14.50 a month plus a seasonal, tiered energy charge: about 12.44 cents per kWh for the first block of usage, with a higher summer tier for June through September and a lower winter tail for October through May, all before the Energy Cost Recovery (ECR), Certificated New Plant (CNP), and Natural Disaster Reserve (NDR) riders that are added on top. Once those riders and the base charge fold in, the all-in effective residential rate lands near Alabama's statewide EIA residential average of 16.40 cents per kWh (June 2026), a little below the US average of 18.34 cents. The 2026 story is a freeze: on 2 December 2025 the Alabama Public Service Commission approved a two-year rate moratorium that halts increases to fuel, plant-operating, purchased-power, regulatory, and RSE charges for 2026 and 2027; in exchange the company redirects money it would otherwise refund customers through RSE into the Natural Disaster Reserve to forestall a storm-cost increase. The freeze prevents increases rather than cutting current rates. One quirk of Alabama: although its per-kWh rate sits below the national average, typical monthly bills are among the highest in the country because Alabama homes use a lot of electricity, roughly 1,144 kWh a month, driven by hot, humid summers and heavy air-conditioning load. Alabama Power uses the RSE mechanism to adjust rates annually toward an allowed return rather than filing traditional rate cases. Alabama Power Rate FD tariff; Alabama PSC two-year rate moratorium approved 2 December 2025; EIA state residential average, June 2026.
About Alabama Power
Alabama Power serves approximately 1.5 million residential customers across AL. The estimated effective residential rate is about 16.18 cents per kWh as of June 2026 - a representative average; see the official tariff schedule for your exact rate.
Service area: Central and southern Alabama, including Birmingham, Montgomery, Mobile, Tuscaloosa, and the Gulf Coast (about the lower two-thirds of the state)
Parent company: Southern Company
Recent rate case: On 2 December 2025 the Alabama Public Service Commission approved a two-year rate moratorium requested by Alabama Power, halting increases to fuel, plant-operating, purchased-power, regulatory-compliance, and Rate Stabilization and Equalization (RSE) charges for 2026 and 2027. The order prevents increases rather than lowering current rates; monthly bills still vary with usage. Alabama Power sets rates through the annual RSE formula rather than traditional rate cases; consult the tariff schedule linked above for current pricing.
Alabama Power Bill Calculator: Cost by Monthly Usage
Estimated monthly bill at 16.18c/kWh plus the $15 fixed charge. Formula: kWh x rate + fixed charge.
A representative estimate using the effective average rate. Your exact bill depends on the tariff, season, and fuel and rider charges. Calculate with your own usage ->
Use our bill calculator for an estimate with your actual kWh usage.
Bill Calculator ->Alabama Power on Form EIA-861: 2024 Reported Sales, Customers and Realised Prices
EIA's 2024 Form 861 census lists 1 operating company behind Alabama Power (Alabama Power Co, utility 195), together serving 1,332,911 residential accounts (bundled plus delivery-only) in AL across 59 counties. Weighted across those companies, the 2024 average realised residential price for bundled service was 16.77 cents per kWh (total residential revenue divided by total residential sales). These are annual averages of what customers actually paid, including fuel and rider charges, so they will not match the tariff rate on a current bill; the estimated effective rate above is the site's forward-looking figure.
| Operating company | EIA # | State | Ownership | Res. accounts | Residential | Commercial | Industrial | Rank in state | Share of res. MWh | Counties |
|---|---|---|---|---|---|---|---|---|---|---|
| Alabama Power Co | 195 | AL | Investor Owned | 1,332,911 | 16.77c | 14.84c | 7.95c | 1 of 46 | 54.9% | 59 |
Data year 2024, EIA-861 final released 3 December 2025. Res. accounts = residential accounts served, bundled plus delivery-only where the company has delivery-only rows; the residential, commercial and industrial prices are the bundled figures (the price basis). Rank is by residential accounts served among the state's utilities with bundled or delivery service; share is the company's share of the state's residential sales in MWh, not of its customers. Delivery-only rows show the wires charge only.
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.