Alabama Faces Highest Electricity Costs in the South

HUNTSVILLE, Ala. — As winter approaches, Alabama residents are preparing for an increase in utility bills, particularly in electricity costs. With many households relying on heaters, these costs may hit harder due to the recent government shutdown impacting various families.

Alabama has been identified as having the highest cost of electricity in the South, as confirmed by Choose Energy. The average electricity rate for homes in Alabama is 16.19 cents per kilowatt-hour as of August 2025, placing it 28th nationally. In comparison, the closest southern state, Georgia, has an average rate of 15.54 cents per kilowatt-hour.

The situation is echoed by data from PowerOutage.us, which indicates that Alabama’s average electricity expense is about $184 per month. This figure not only exceeds those of surrounding states but also highlights the state’s struggle with electric costs. The U.S. Energy Information Administration corroborates the finding, reporting that Alabama’s electricity pricing aligns with that of Choose Energy.

Despite Alabama’s high average costs, some local utilities offer more competitive rates. For instance, Huntsville Utilities charges an average of 11.72 cents per kilowatt-hour, while Decatur Utilities has an even lower rate, averaging 11.40 cents. In stark contrast, the state’s primary electricity provider, Alabama Power, charges about 17.02 cents per kilowatt-hour, significantly raising the state average.

As winter nears, residents are encouraged to take measures to mitigate rising costs, especially as they are more likely to use heaters. Among these recommendations are checking utility bills and comparing service providers for the best rates available.