In July 2026, homes in Alabama paid an average of 16.40¢ per kWh, the 24th most expensive of the 50 states and DC and 10.4% below the U.S. average of 18.31¢.
That price is up 3.0% from a year earlier.
Over the past 12 months the average home in Alabama used 1,125 kWh a month, for an average bill of $185 (U.S.: $157).
About electricity in Alabama
Alabama's power plants produce far more electricity than the state uses. Natural gas is the largest source, with nuclear plants supplying a large share of the rest.
- natural gas 46%
- nuclear 30%
- coal 15%
- hydropower 6%
- biomass 2%
- other 1%
The Alabama Public Service Commission is the state agency that regulates electric utilities in Alabama.
Average electric bill in Alabama
Over the last 12 months the average Alabama home paid $185 a month for electricity, the 4th highest of the 50 states and DC. In July 2026 the average bill was $249 for 1,517 kWh.
Over the last 12 months, homes in Alabama used the most electricity in July, when air conditioning drives usage up: an average of 1,517 kWh and a $249 bill. The lightest month was April, at 842 kWh and $147.
What would I pay?
| Monthly use | Per month | Per year |
|---|---|---|
| 500 kWh × 16.40¢ | $82.00 | $984 |
| 1,000 kWh × 16.40¢typical | $164.00 | $1,968 |
| 1,500 kWh × 16.40¢ | $246.00 | $2,952 |
| 2,000 kWh × 16.40¢ | $328.00 | $3,936 |
Estimate your own bill
Cost of electricity in Alabama by month
Businesses in Alabama paid 14.83¢ per kWh in July 2026 (the 16th most expensive for business power), and industrial users paid 8.42¢.
Electric companies in Alabama
45 utilities deliver electricity to homes in Alabama. The largest is Alabama Power Co, serving 1,342,827 homes.
| Utility | Homes served | Avg. home rate |
|---|---|---|
| Alabama Power Co | 1,342,827 | 17.91¢ |
| City of Huntsville | 201,803 | 12.51¢ |
| Baldwin County El Member Corp | 85,081 | 14.17¢ |
| Foley Board of Utilities | 53,818 | 13.97¢ |
| City of Athens | 52,200 | 11.58¢ |
| Central Alabama Electric Coop | 45,580 | 17.21¢ |
| City of Florence | 41,690 | 12.39¢ |
| Cullman Electric Coop, Inc | 40,027 | 14.59¢ |
| Joe Wheeler Elec Member Corp | 37,109 | 15.44¢ |
| Tallapoosa River Elec Coop Inc | 30,157 | 14.81¢ |
"Avg. home rate" is what each utility's full-service residential customers paid on average in 2025 (revenue ÷ kWh sold). Delivery-only utilities have no full-service rate.
Can you choose your electricity supplier in Alabama?
No. Households in Alabama buy electricity from the utility that serves their address. Rates are set by the state utility commission (for investor-owned utilities) or by the utility's own board (for co-ops and city-owned utilities).
Alabama compared with neighboring states
| State | Price per kWh | Avg. monthly bill (12 mo.) |
|---|---|---|
| Tennessee | 13.71¢ | $162 |
| Mississippi | 14.54¢ | $171 |
| Florida | 15.03¢ | $169 |
| Georgia | 16.27¢ | $162 |
| Alabama | 16.40¢ | $185 |
Alabama electricity FAQ
What is the average electric bill in Alabama?
The average home in Alabama paid $185 a month over the last 12 months, using 1,125 kWh. That is the 4th highest of the 50 states and DC. In July 2026 alone, the average bill was $249.
How much does electricity cost per kWh in Alabama?
Homes paid an average of 16.40¢ per kWh in July 2026, 10.4% below the U.S. average of 18.31¢. Businesses paid 14.83¢ per kWh.
Which month has the highest electric bills in Alabama?
July, in the last 12 months of data: the average bill reached $249 (1,517 kWh), compared with $147 in April, the lowest month.
Can I choose my electricity provider in Alabama?
No. Households in Alabama buy electricity from the utility that serves their address, at rates set by regulators or the utility's board.
What are the largest electric companies in Alabama?
By number of residential customers in 2025: Alabama Power Co (1,342,827), City of Huntsville (201,803), Baldwin County El Member Corp (85,081).
Latest AL electric rates, bills and usage: U.S. Energy Information Administration retail sales data (forms EIA-861M and EIA-861), latest month July 2026. Utilities and suppliers: EIA-861 (2025). Bills and usage are revenue and sales divided by customers. Last updated 2026-10-20.