Reading the Alabama Price Trend

According to the U.S. Energy Information Administration's retail-sales series, RateWatt currently holds 2,040 annual state-sector records spanning 2016 through 2025. These are statewide annual averages, not individual utility quotes. See the methodology for source scope and refresh cadence.

Alabama residential electricity moved from 11.99¢/kWh in 2016 to 16.10¢/kWh in 2025, a cumulative change of +34.3% over 10 reporting years. The more recent five-year window changed +28.1% since 2020; comparing the two windows describes whether the pace changed, but does not establish why. Against the national residential benchmark of 17.30¢/kWh, Alabama now sits 6.9% below the U.S. average for 2025.

Commercial customers in Alabama paid 14.52¢/kWh in 2025, while industrial customers paid 7.73¢/kWh. Sector differences can reflect customer mix, consumption volume, tariff design, and cost allocation; this statewide series does not identify which factor drives a state's gap. Here the residential-to-industrial multiplier is about 2.1x, one descriptive benchmark for comparison with peer states.

EIA reports 6 generation sources for Alabama; ranked by share of generation they run natural gas, nuclear, coal, hydro, solar. Of the 11 sources EIA reports somewhere in the country, Alabama records no generation from biomass, geothermal, other, pumped storage or wind. That is an absence in the published series, not a statement that no such capacity exists. This price series and that generation series are published separately and are not joined here, so nothing on this page attributes a price movement to a fuel mix. Adjacent entries in the alphabetical state browser are Alaska; their pages carry the same series on the same basis. EIA publishes the annual series once per year and revises prior years without renumbering them, so a figure here can change when a later release restates it.

Within-year profile computed from 36 monthly observations across 3 complete calendar years in EIA's residential series (monthly data begins 2023-01). Partial calendar years are excluded so a newer partial tail cannot bias January–May against later months. Peak and trough are the highest and lowest month averages across that record, not a forecast; the spread is quoted against this state's own monthly mean.

Both figures are compound annual rates over EIA's published residential series, so the five-year and full-record windows are directly comparable; the national comparison ranks all 51 states and DC on the same measure. Annual state-level averages, not individual bills.