Alabama's average residential electricity price was 16.2¢/kWh in February 2026 —
the 21st-highest price of the 51 states+DC (EIA). Across its major utilities in 2024, average all-in rates ranged from
11.5¢/kWh at City of Huntsville to
16.8¢/kWh at Alabama Power Co — a spread worth about
$575/yr at typical usage (10,800 kWh/yr).
Alabama is a fully regulated market: households cannot choose their electricity or gas supplier.
For home heating, utility natural gas was the cheapest fuel at
$15.32 per million BTU vs $47.42 for electric resistance heat.
Residential rates by utility (EIA-861, average all-in ¢/kWh)
| Utility | 2023 ¢/kWh | 2024 ¢/kWh | Customers (2024) | Ownership | vs state avg, $/yr |
|---|---|---|---|---|---|
| City of Troy | 9.67 | 9.66 | 7,855 | Municipal | -$597 |
| Albertville Municipal Utilities Board | 10.62 | 10.67 | 8,318 | Municipal | -$488 |
| City of Dothan | 11.20 | 10.72 | 26,752 | Municipal | -$483 |
| Decatur Utilities | 10.98 | 11.15 | 22,820 | Municipal | -$436 |
| City of Huntsville | 11.48 | 11.45 | 197,537 | Municipal | -$404 |
| City of Florence | 11.59 | 11.61 | 41,594 | Municipal | -$386 |
| Arab Electric Coop Inc | 11.99 | 11.96 | 14,062 | Co-op | -$349 |
| City of Muscle Shoals | 11.69 | 11.96 | 7,154 | Municipal | -$349 |
| Fort Payne Improvement Authority | 11.88 | 12.14 | 6,922 | Municipal | -$329 |
| City of Athens | 11.11 | 12.24 | 50,985 | Municipal | -$319 |
| City of Bessemer Utilities | 11.86 | 12.26 | 9,378 | Municipal | -$317 |
| Sheffield Utilities | 12.21 | 12.35 | 15,663 | Municipal | -$307 |
| Marshall-De Kalb Electric Coop | 12.55 | 12.48 | 17,318 | Co-op | -$292 |
| Sand Mountain Electric Coop | 12.56 | 12.55 | 27,298 | Co-op | -$285 |
| Cullman Power Board | 12.65 | 12.64 | 7,049 | Municipal | -$276 |
| City of Opelika | 13.47 | 12.83 | 13,555 | Municipal | -$255 |
| North Alabama Electric Coop | 12.52 | 12.84 | 13,099 | Co-op | -$254 |
| City of Scottsboro | 12.91 | 12.87 | 7,090 | Municipal | -$251 |
| Black Warrior Elec Member Corp | 13.41 | 13.24 | 20,053 | Co-op | -$211 |
| Cullman Electric Coop, Inc | 13.21 | 13.26 | 39,779 | Co-op | -$208 |
| Foley Board of Utilities | 13.51 | 13.48 | 50,954 | Municipal | -$184 |
| Baldwin County El Member Corp | 13.22 | 13.87 | 83,005 | Co-op | -$143 |
| Southern Pine Elec Coop, Inc | 13.56 | 13.90 | 20,645 | Co-op | -$140 |
| Franklin Electric Coop | 13.80 | 14.03 | 5,979 | Co-op | -$125 |
| Tallapoosa River Elec Coop Inc | 13.79 | 14.39 | 29,578 | Co-op | -$87 |
| Joe Wheeler Elec Member Corp | 13.81 | 14.49 | 36,973 | Co-op | -$76 |
| Dixie Electric Coop | 14.70 | 15.05 | 22,054 | Co-op | -$15 |
| Cherokee Electric Coop | 14.69 | 15.06 | 18,830 | Co-op | -$14 |
| South Alabama Elec Coop, Inc | 14.27 | 15.44 | 16,801 | Co-op | +$27 |
| Wiregrass Electric Coop, Inc | 15.01 | 15.45 | 22,401 | Co-op | +$28 |
| Coosa Valley Electric Coop Inc | 16.18 | 15.71 | 15,612 | Co-op | +$56 |
| Clarke-Washington E M C | 15.32 | 15.76 | 18,708 | Co-op | +$62 |
| Central Alabama Electric Coop | 15.75 | 16.64 | 45,036 | Co-op | +$157 |
| Covington Electric Coop, Inc | 16.78 | 16.65 | 23,281 | Co-op | +$158 |
| Alabama Power Co | 15.90 | 16.77 | 1,332,911 | Investor-owned | +$171 |
| Pea River Electric Coop | 16.30 | 16.77 | 14,922 | Co-op | +$171 |
Average price = residential revenue ÷ residential sales from each utility's federal EIA-861 filing (bundled service — supply + delivery + riders, not a quoted tariff rate). State average = 15.19¢/kWh, volume-weighted across these utilities (2024). Your distribution utility is fixed by address; these gaps measure what households in different territories actually paid.
Can you choose your electric company in Alabama?
Electric supply choice: no · Gas supply choice: no
Fully regulated (Alabama Power / Spire).
Official rate information: psc.alabama.gov.
Heating: which fuel is cheapest per million BTU in Alabama?
| Fuel | Native price | As of | $ per MMBTU |
|---|---|---|---|
| Utility natural gas | $1.532 /therm | Feb 2026 | 15.32 |
| Propane | $3.516 /gal | Mar 30, 2026 | 38.45 |
| Electricity (resistance) | 16.18 ¢/kWh | Feb 2026 | 47.42 |
Utility natural gas is the cheapest residential energy per BTU in Alabama at $15.32/MMBTU. Conversions: 1 kWh = 3,412 BTU; 1 therm = 100,000 BTU; heating oil 138,500 BTU/gal; propane 91,452 BTU/gal. Site-energy prices — appliance efficiency changes delivered-heat cost: a 95% AFUE gas furnace delivers heat near the gas figure, while a heat pump at seasonal COP 2.5–3 cuts the effective electric figure by 60–70%. (No EIA weekly heating-oil survey price for Alabama.)
Electricity price trend, last 12 months
Alabama's average residential price went from 15.83¢/kWh in Feb '25 to 16.18¢/kWh in Feb '26 — up 2% year-over-year. The 12-month peak was 16.81¢ in Apr '25.
| Month | Feb '25 | Mar '25 | Apr '25 | May '25 | Jun '25 | Jul '25 | Aug '25 | Sep '25 | Oct '25 | Nov '25 | Dec '25 | Jan '26 | Feb '26 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ¢/kWh | 15.83 | 16.56 | 16.81 | 16.15 | 16.06 | 15.93 | 16.24 | 16.43 | 16.72 | 16.08 | 16.01 | 16.06 | 16.18 |
Head-to-head utility comparisons in Alabama
- Alabama Power Co vs Baldwin County El Member Corp — who's cheaper?
- Alabama Power Co vs Foley Board of Utilities — who's cheaper?
- Baldwin County El Member Corp vs Foley Board of Utilities — who's cheaper?
Questions people ask
- Who has the cheapest electricity in Alabama?
- City of Huntsville, at an average 11.5 cents per kWh for 2024 among Alabama utilities with at least 50,000 customers (EIA-861). The most expensive, Alabama Power Co, averaged 16.8 cents — a difference of about $575 per year at 10,800 kWh.
- Can I choose my electric company in Alabama?
- No. Alabama is a regulated retail market: your utility is set by address and there is no residential supplier shopping. Rates are set in state utility-commission proceedings (psc.alabama.gov).
- Is gas or electric heat cheaper in Alabama?
- Per million BTU of site energy, utility natural gas was $15.32 (Feb 2026) versus $47.42 for electric resistance heat. A heat pump delivering 2.5-3 units of heat per unit of electricity brings electric heating to roughly $16-19 per MMBTU.
- What is the average electric bill in Alabama?
- At Alabama's February 2026 average price of 16.18 cents/kWh and typical usage of 900 kWh per month, a household pays about $146 per month ($1747 per year) for electricity. Actual bills vary with usage, utility territory, and tariff.
About these numbers. Rates shown are averages computed from federal regulatory filings (EIA Form 861)
and public tariff databases — confirm with your utility before making decisions; your actual rate depends on your tariff,
usage, and riders. Distribution utility is determined by address and generally cannot be chosen; in retail-choice states
you may choose your supplier for the supply portion of the bill. Savings figures use 10,800 kWh/yr
(US average residential usage) and are estimates, not quotes. EnergySavings is an independent data project by CertiHomes
and is not affiliated with any utility, supplier, or government agency.