Electricity rates — Alabama
A household in Alabama using 1,000 kWh a month pays about $1,401.27 a year on the cheapest of 5 generally available plans — Family Dwelling Service (Demand Option) from Alabama Power Co, in effect since January 2025. Rates checked September 23, 2026. A further 2 restricted and 10 older schedules are priced further down but not ranked.
Every priced plan, 1,000 kWh/mo
| Plan | Per year | vs cheapest | Effective |
|---|---|---|---|
| Rate PAE - Option A - Single PhaseAlabama Power Copriced by season · in effect since December 2015 · older schedule, not ranked | $612.04 | −$789.23 | 5.1¢ |
| Rate PAE - Option A - Three PhaseAlabama Power Copriced by season · in effect since January 2016 · older schedule, not ranked | $618.40 | −$782.87 | 5.2¢ |
| Rate PAE - Option C - Single PhaseAlabama Power Cotime-of-use · in effect since January 2016 · older schedule, not ranked | $650.14 | −$751.13 | 5.4¢ |
| Rate PAE - Option B - Single Phase TOU CustomersAlabama Power Cotime-of-use · in effect since January 2016 · older schedule, not ranked | $650.82 | −$750.45 | 5.4¢ |
| Rate PAE - Option B - Single Phase Demand CustomersAlabama Power Cotime-of-use · in effect since January 2016 · older schedule, not ranked | $653.70 | −$747.57 | 5.4¢ |
| Rate PAE - Option C - Three PhaseAlabama Power Cotime-of-use · in effect since January 2016 · older schedule, not ranked | $656.50 | −$744.77 | 5.5¢ |
| Rate PAE - Option B - Single Phase Standard CustomersAlabama Power Cotime-of-use · in effect since January 2016 · older schedule, not ranked | $660.06 | −$741.21 | 5.5¢ |
| Rate PAE - Option B - Three PhaseAlabama Power Cotime-of-use · in effect since January 2016 · older schedule, not ranked | $1,264.23 | −$137.04 | 10.5¢ |
| Residential RateCity of Athens, Alabama (Utility Company)flat rate · in effect since July 2014 · older schedule, not ranked | $1,265.16 | −$136.11 | 10.5¢ |
| Family Dwelling Service (Demand Option)✓ cheapestAlabama Power Copriced by season · demand charge · in effect since January 2025 | $1,401.27 | — | 11.7¢ |
| ResidentialFoley Board of Utilitiesflat rate · in effect since January 2015 · older schedule, not ranked | $1,416.00 | +$14.73 | 11.8¢ |
| Schedule RS - ResidentialCity of Huntsville, Alabama (Utility Company)tiered · in effect since February 2026 | $1,516.56 | +$115.29 | 12.6¢ |
| Plug-In Electric Vehicle - Family Dwelling Service (Demand Option)Alabama Power Cotime-of-use · demand charge · in effect since June 2023 · needs an electric vehicle | $1,590.55 | +$189.28 | 13.3¢ |
| Rate RTA DemandAlabama Power Cotime-of-use · demand charge · in effect since January 2025 | $1,728.85 | +$327.58 | 14.4¢ |
| Rate RTA EnergyAlabama Power Cotime-of-use · in effect since January 2025 | $1,823.80 | +$422.53 | 15.2¢ |
| Family Dwelling ServiceAlabama Power Copriced by season · tiered · in effect since January 2026 | $1,908.52 | +$507.25 | 15.9¢ |
| Large Farm ServiceAlabama Power Copriced by season · in effect since January 2025 · farm or irrigation service | $1,944.72 | +$543.45 | 16.2¢ |
Cost across usage levels
The cheapest plan at each consumption level, showing whether the ranking holds as usage changes.
- 500 kWh/mo — cheapest $796.73 (Family Dwelling Service (Demand Option)), dearest $1,070.89, a $274.16 spread
- 1,000 kWh/mo — cheapest $1,401.27 (Family Dwelling Service (Demand Option)), dearest $1,908.52, a $507.25 spread
- 2,000 kWh/mo — cheapest $2,610.70 (Family Dwelling Service (Demand Option)), dearest $3,563.16, a $952.46 spread
What a typical bill costs
At 1,000 kWh a month the 5 generally available plans here run from $1,401.27 on Family Dwelling Service (Demand Option) to $1,908.52 on Family Dwelling Service, with a median of $1,728.85.
Effective rates, bill divided by kilowatt-hours, span 11.7¢ to 15.9¢ per kWh at that usage.
What households in Alabama pay, by EIA's count
Over the 12 months to June 2026, residential electricity in Alabama averaged 16.4¢ per kWh, the 22nd-highest of the 50 states and DC and 9% below the US average of 17.9¢. It sits between Virginia (16.3¢) and Colorado (16.5¢).
EIA lists 45 utilities serving homes in Alabama. By homes served, the largest 5 are Alabama Power Co (1,332,911), City of Huntsville - (AL) (197,537), Baldwin County El Member Corp (83,005), City of Athens - (AL) (50,985), and Foley Board of Utilities (50,954). Member-owned cooperatives supply about 21% and municipal utilities supply about 21% of its households.
Alabama homes used the most electricity in July and the least in April (2021–2025): a summer peak, 1.8 times the lightest month. October was the dearest month per kWh, 11% above December.
The utilities with a ranked plan on this page serve about 64% of Alabama's households: Alabama Power Co (1,332,911), City of Huntsville, Alabama (Utility Company) (197,537). Their median plan at 1,000 kWh a month works out to 14.4¢ per kWh, 12% below EIA's average, which is why this page compares that median with other states'.
| Average price, 12 months to June 2026 | 16.4¢ |
|---|---|
| Among the 50 states and DC | 30 of 51, 1 = lowest |
| US average, same months | 17.9¢ |
| Change on the 12 months before | ↑ +5.1% |
| Change over five years | ↑ +28.0% (US ↑ +34.7%) |
| Average price in 2001 | 7.0¢ |
| Households, 2024 | 2,398,172 |
| Average use per home | 1,143 kWh a month (US 872) |
| Average bill per home | $173.50 a month (US $143.64) |
Every year’s figure
| Year | Alabama | US |
|---|---|---|
| 2025 | 16.1¢ | 17.3¢ |
| 2024 | 15.2¢ | 16.5¢ |
| 2023 | 14.6¢ | 16.0¢ |
| 2022 | 14.2¢ | 15.0¢ |
| 2021 | 13.0¢ | 13.7¢ |
| 2020 | 12.6¢ | 13.2¢ |
| 2019 | 12.5¢ | 13.0¢ |
| 2018 | 12.2¢ | 12.9¢ |
| 2017 | 12.5¢ | 12.9¢ |
| 2016 | 12.0¢ | 12.5¢ |
| 2015 | 11.7¢ | 12.7¢ |
| 2014 | 11.5¢ | 12.5¢ |
| 2013 | 11.3¢ | 12.1¢ |
| 2012 | 11.4¢ | 11.9¢ |
| 2011 | 11.1¢ | 11.7¢ |
| 2010 | 10.7¢ | 11.5¢ |
| 2009 | 10.7¢ | 11.5¢ |
| 2008 | 10.4¢ | 11.3¢ |
| 2007 | 9.3¢ | 10.7¢ |
| 2006 | 8.8¢ | 10.4¢ |
| 2005 | 8.0¢ | 9.4¢ |
| 2004 | 7.6¢ | 8.9¢ |
| 2003 | 7.4¢ | 8.7¢ |
| 2002 | 7.1¢ | 8.4¢ |
| 2001 | 7.0¢ | 8.6¢ |
How Alabama compares
At 1,000 kWh a month the median plan in Alabama costs $1,728.85 a year: the 10th-lowest of the 29 states whose indexed plans stand for them, and 13% less than their median of $1,989.30. It sits between Arizona ($1,703.89) and Florida ($1,800.58).
Its cheapest open plan, Family Dwelling Service (Demand Option) from Alabama Power Co at $1,401.27, is the 11th-lowest of the 29 states' cheapest plans.
In the guides: What published electricity plans cost, state by state
What each provider costs
2 utilities serve customers across Alabama in this data. At 1,000 kWh a month the cheapest of them is Alabama Power Co at $1,401.27 a year on Family Dwelling Service (Demand Option); the dearest is City of Huntsville, Alabama (Utility Company) at $1,516.56.
That is $115.29 a year between the best each provider offers.
Cheapest available plan by provider: Alabama Power Co $1,401.27; City of Huntsville, Alabama (Utility Company) $1,516.56.
How the answer changes with usage
Family Dwelling Service (Demand Option) is cheapest at every level tested — $796.73 a year at 500 kWh a month, $2,610.70 at 2,000 kWh.
The penalty for a poor choice grows with usage: $274.16 a year at 500 kWh against $952.46 at 2,000 kWh.
How these plans are structured
Of 17 priceable plans: 2 tiered, 9 time-of-use, 5 priced by season, 3 with demand charges, 2 flat-rate.
Fixed monthly charges run from $0.97 to $26.50.
Who provides these plans
These plans come from 4 utilities: Alabama Power Co, City of Athens, Alabama (Utility Company), City of Huntsville, Alabama (Utility Company), Foley Board of Utilities.
The largest saving available here
Moving from Family Dwelling Service to Family Dwelling Service (Demand Option) saves $507.25 a year at 1,000 kWh a month, with no change in consumption.
What this does not cover
9 of these plans price by the hour, so their figures are marked lower confidence.
New to these terms? The methodology page explains tiered bands, time-of-use periods and fixed charges, and sets out exactly what the rate engine assumes.
Estimate — your actual bill may differ.
Tariff structures from NREL/OpenEI Utility Rate Database (CC0 1.0), retrieved September 23, 2026.
State prices from U.S. Energy Information Administration, electricity retail sales, Alabama, retrieved September 23, 2026; households and utilities from U.S. Energy Information Administration, Form EIA-861, 2024 (Sales_Ult_Cust_2024.xlsx), retrieved September 23, 2026. US Government public domain.