Electricity costs in the United States can vary significantly based on location, and recent statistics reveal that Alabama ranks among the highest in the nation for residential electrical rates. According to Choose Energy, as of August 2025, the average cost of electricity in Alabama is reported at 16.19 cents per kilowatt-hour, positioning the state as the 28th most expensive in terms of residential electricity rates.
This figure places Alabama above every other Southern state, with Georgia being the closest at 15.54 cents per kilowatt-hour. Moreover, the state is noted for having the highest average electricity price in the South, which is corroborated by data from PowerOutage.us, indicating an average monthly bill of about $184.
In comparison, local utility costs in Alabama show variability. For instance, Huntsville Utilities reports average residential rates at 11.72 cents per kilowatt-hour, falling below the national average. Other providers such as Joe Wheeler EMC and Decatur Utilities also offer competitive rates at 14.90 cents and 11.40 cents, respectively. However, the dominant provider, Alabama Power, which services a large part of Central Alabama including Birmingham, has a higher rate of 17.02 cents per kilowatt-hour, contributing significantly to the state’s overall average.
These figures highlight the geographical disparities in electricity costs, with various factors, including local utility fees and taxes, influencing individual monthly bills. Despite the challenges posed by higher electricity rates, there are indications of more competitive pricing among local utilities, which could provide some relief to consumers in Alabama.