Electricity Price History in Alabama

Electricity cost depends on monthly usage and your state's rate. Below are historical rate trends and price change metrics for Alabama. Data comes from EIA residential retail sales.

Current rate
16.55 ¢/kWh
1-year increase
+6.9%
5-year increase
+41.4%

Price Trend

Alabama electricity rate historyAlabama electricity rate history. 2021-01 to 2025-12. Values: 12.21¢, 12.88¢, 13.23¢, 13.61¢, 13.42¢, 13.40¢, 13.23¢, 13.38¢, 13.48¢, 13.70¢, 13.30¢, 9.66¢, 12.75¢, 13.01¢, 13.56¢, 14.10¢, 14.13¢, 14.64¢, 14.83¢, 15.43¢, 15.48¢, 15.02¢, 14.83¢, 13.10¢, 14.41¢, 15.34¢, 14.67¢, 14.54¢, 14.55¢, 14.67¢, 14.48¢, 14.19¢, 14.89¢, 15.08¢, 14.98¢, 14.16¢, 14.48¢, 15.09¢, 15.96¢, 15.95¢, 14.82¢, 15.12¢, 15.03¢, 14.95¢, 15.45¢, 15.63¢, 15.57¢, 14.97¢, 15.09¢, 15.83¢, 16.56¢, 16.81¢, 16.15¢, 16.06¢, 15.93¢, 16.24¢, 16.43¢, 16.72¢, 16.08¢, 16.01¢
2021-01 to 2025-12

Summary

Electricity prices in Alabama have increased 41.4% over the past 5 years. One year ago the rate was 14.97¢/kWh; it is now 16.55¢/kWh. Five years ago the rate was 11.32¢/kWh.

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Frequently Asked Questions

How much have electricity prices increased in Alabama?
Electricity prices in Alabama have increased 41.4% over the past 5 years. The 1-year increase is 6.9%. The annualized 5-year increase is approximately 7.2% per year.
Why do electricity prices change?
Electricity prices change due to fuel costs (natural gas, coal, renewables), transmission and distribution investments, regulatory policies, demand patterns, and weather. State-level rates also reflect local generation mix and market structure.
Are electricity prices rising faster than inflation?
It varies by state and period. The U.S. Bureau of Labor Statistics reports that electricity prices have often risen faster than overall inflation in recent years due to grid modernization, renewable mandates, and fuel cost volatility. Compare your state's annualized increase to CPI inflation.

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