Electricity Rate in Alabama (2026): 14.14c/kWh Average
Alabama Electricity Rate: What You Need to Know
Alabama electricity averages 14.14 cents per kWh for residential customers as of April 2026, according to the EIA Electric Power Monthly. This is 3.51c below the US average of 17.65c/kWh. The average monthly bill for Alabama households is $167 based on typical usage of 1180 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 3.2% year-over-year as of April 2026. This compares to the US average increase of 5.4% 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.
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