For those impacted by the government shutdown, those higher bills weigh extra heavy. However, here in Alabama, we may already be at a disadvantage.
According To Choose Energy, the average home in the U.S. consumes 863 Kilowatts of electricity per month.
But electricity bills vary by state and region based on different rate structures, utility fees, and local taxes.
Choose Electricity ranks residential rates by state, and Alabama Ranks 28th on their list, with an average cost of 16.19 cents/kW hour in August 2025. That’s the national ranking.
Every southern state on Choose Electricity’s list ranks better than Alabama, with Georgia the closest at 15.54 cents/kW hour.
On PowerOutage.us rankings, Alabama has the most expensive electricity in the South at an average of 16.06 cents/kW hour or $184/month.
According to the U.S. Energy Information Administration, the average price of electricity in Alabama in August 2025 was 16.19 cents/kW hour, the same cost listed on Choose Electricity.
This is the highest cost of electricity of any southern state, including Arkansas and Missouri.
But how do local utility costs measure up?
According to FindEnergy.com, Huntsville Utilities’ average residential rate is 11.72 dents/kW hour, which is notably less than the national average.
Joe Wheeler EMC is 14.90 cents/kW hour, and Decatur Utilities is 11.40/kW hour.
It’s worth noting that the state’s biggest provider, Alabama Power, has an average cost of 17.02 cents. Alabama Power provides service to a vast portion of Central Alabama, including Birmingham, bringing up the state’s average cost by a significant amount.