Understanding Energy in Alabama
Alabama has below-average electricity rates but above-average consumption driven by hot, humid summers. Alabama Power, a Southern Company subsidiary, serves most of the state. Nearly all homes rely on electric or natural gas heat rather than heating oil.
Alabama has a regulated electricity market. Your utility is the only electricity provider in your area, but rates are reviewed and approved by the state's public utility commission to ensure they are fair and reasonable.
The state's primary electric utilities include Alabama Power (Southern Company), Tennessee Valley Authority (TVA). Natural gas distribution is handled by Alagasco (Spire Alabama), CenterPoint Energy Alabama. Alabama's climate — hot humid summers, mild winters — is one of the main drivers of annual energy consumption patterns for households.
Electric Utilities in Alabama
The following utilities operate in Alabama. Your specific provider depends on your address.
- Alabama Power (Southern Company)
- Tennessee Valley Authority (TVA)
Natural Gas Utilities in Alabama
- Alagasco (Spire Alabama)
- CenterPoint Energy Alabama
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Energy Assistance Programs in Alabama
Low-income households and those facing energy emergencies may qualify for these programs:
- Alabama LIHEAP
- Weatherization Assistance Program
- Alabama Energy Assistance Program
- Dollar Energy Fund
Energy Saving Tips for Alabama Residents
These tips are tailored to Alabama's climate — hot humid summers, mild winters:
- Run your AC on a "dry" mode or use a standalone dehumidifier — moisture makes heat feel worse.
- Clean or replace AC filters monthly during summer to maintain airflow and efficiency.
- Consider a mini-split heat pump — it's highly efficient for both cooling and mild-winter heating.
- Install Energy Star certified windows to reduce solar heat gain.
- Use exhaust fans in bathrooms and kitchens to remove humidity at the source.
- Check for the CARE or low-income utility assistance program in your state.
- Schedule an energy audit — many Florida and Georgia utilities offer them free.
Gas & Electricity Rates by City in Alabama
Select a city to view local utility rates, providers, and energy programs.
All Cities & Towns in Alabama
Gas and electricity information for all 374 cities and towns in Alabama. Jump to a letter or browse the full list.
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- Calera
- Camden
- Camp Hill
- Carbon Hill
- Cardiff
- Carlisle-Rockledge
- Carolina
- Carrollton
- Castleberry
- Cedar Bluff
- Centre
- Centreville
- Chatom
- Chelsea
- Cherokee
- Chickasaw
- Childersburg
- Citronelle
- Clanton
- Clay
- Clayhatchee
- Clayton
- Cleburne
- Cleveland
- Clio
- Coaling
- Coffee Springs
- Coffeeville
- Coker
- Collinsville
- Colony
- Columbia
- Columbiana
- Coosada
- Cordova
- Cottonwood
- County Line
- Courtland
- Cowarts
- Creola
- Crossville
- Cuba
- Cullman
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Frequently Asked Questions — Alabama Energy
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The average residential electricity rate in Alabama is approximately 16.77¢/kWh, compared to the national average of around 16¢/kWh. The average monthly electricity bill is $160.
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The average residential natural gas rate in Alabama is approximately $1.81/therm per therm. The typical monthly gas bill is $56, though this varies significantly by season.
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The primary electric utilities serving Alabama include Alabama Power (Southern Company), Tennessee Valley Authority (TVA). The right utility for you depends on your specific address.
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No — Alabama has a regulated electricity market, meaning your utility is determined by your location.
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Alabama residents may qualify for several assistance programs including Alabama LIHEAP, Weatherization Assistance Program. Contact your utility or the state energy office for eligibility details.
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To reduce your energy bills in Alabama: schedule a free energy audit through your utility, check for state weatherization assistance, upgrade to LED lighting, and optimize your thermostat settings. Ask your utility about budget billing to smooth out seasonal costs.