Alabama Electricity Rates
Rate data for Alabama is being refreshed. The regulator and market facts below are current; figures return with the next data load.
Can you choose your electricity supplier in Alabama?
No. Alabama has not opened its residential electricity market to competition, so the utility that delivers your power also sells it. Its prices are set in rate cases before the Alabama Public Service Commission, and the rate you pay depends on which utility serves your address, your rate schedule, and the season.
Grid operator: No RTO; Southeast bilateral market (SERC). Wholesale power costs flow through to retail bills on the regulator's schedule rather than month to month, which is why regulated-state rates move more slowly than the market-based states listed below.
Want to shop for a supplier? Retail choice is open on this site in Massachusetts, New Jersey, Ohio, Pennsylvania, Texas, Washington DC.
There is no supplier to shop for and no single statewide rulebook: your address assigns you to PSC-regulated Alabama Power in the southern two-thirds, a TVA-supplied municipal or co-op system in the north, or one of 22 cooperatives, each with its own deposit policy (from Decatur's $145 to Baldwin EMC's $350-plus) and its own complaint path, and Alabama Power's summer peak pricing of 30 cents per kWh on weekday afternoons shows where the cooling-season money goes.
Who will deliver your power in Alabama
The utility is fixed by your address. These are the largest in the state, with what each says it needs from a new customer.
Alabama Powerinvestor-owned
Southern Company subsidiary serving the southern two-thirds of Alabama; the only investor-owned electric utility whose rates the Alabama Public Service Commission sets. About more than 1.5 million homes and businesses (per Alabama Power).
Apply online with the primary account holder's Social Security number (customer service is 1-800-245-2244, Monday-Friday 7 a.m. to 7 p.m. CST); orders submitted by midnight are eligible for next-day connection on weekdays only (Friday-Sunday orders go Monday, and new homes needing installation take longer), and a $40.00 account establishment charge lands on the first bill. An Equifax credit check decides whether you owe a deposit of twice the residence's average monthly bill; the FAQ says it is refunded with interest as a bill credit after 12 consecutive months of on-time payments, while the PSC-approved tariff says it is held 24 months provided no delinquent payments in the last 12.
Start service with Alabama Power →Sources: alabamapower.com, alabamapower.com, alabamapower.com, psc.alabama.gov
Huntsville Utilitiesmunicipal
Owned by the City of Huntsville, serving Huntsville and Madison County in north Alabama; it has bought its power from the Tennessee Valley Authority since a 1940 contract. About 234,968 electric customers, 208,883 of them residential (per Huntsville Utilities, as of September 1, 2026).
Apply online through the My HU Portal, by mail, or in person at 112 Spragins Street (Monday-Friday 8 a.m. to 5 p.m.); allow two business days, and do not use the online option if you need service sooner. You need two valid unexpired government IDs (or a STAR ID alone); the posted deposit policy sets the standard residential deposit at $300.00, reduced to $100.00 for online applicants with an excellent third-party credit score or with a qualifying guarantor (the service-requirements page says a deposit is required when a new customer does not meet credit requirements in a third-party credit review or opts out of it), with $200.00 of the $300.00 credited back after three consecutive years of excellent payment history, plus a non-refundable service charge to establish service (the mail-in form asks for $360.00 covering deposit and connection fee).
Start service with Huntsville Utilities →Sources: hsvutil.org, hsvutil.org, hsvutil.org, hsvutil.org, hsvutil.org, hsvutil.org, hsvutil.org
Baldwin EMCcooperative
Member-owned cooperative organized in 1937 and the largest electric cooperative in Alabama, serving Baldwin County (including Gulf Shores and Orange Beach) and southern Monroe County in southwestern Alabama, between Mobile and Pensacola. About more than 95,000 meters (per Baldwin EMC).
Download and sign the application (your signature is required) and return it in person, by mail or by fax with the meter number or 911 address; the call center is (251) 989-6247 or (800) 837-3374, Monday-Thursday 7 a.m. to 6 p.m. Service to an existing meter comes the next business day, while a brand-new service can take up to two weeks after forms and fees are in; fees are a $5.00 refundable membership fee, a non-refundable account fee of $30 (existing meter) or $50 (new service), and a residential deposit of the greater of $350.00 or about two and a half months' estimated billing, which an acceptable credit score can cut to $200.00 or waive, or skip entirely with the $4-a-month Prepay Power plan.
Start service with Baldwin EMC →Sources: baldwinemc.com, baldwinemc.com, baldwinemc.com, baldwinemc.com, baldwinemc.com, baldwinemc.com
Decatur Utilitiesmunicipal
Municipal utility owned by the City of Decatur in Morgan County, run by the Municipal Utilities Board created by the Legislature in 1939, offering TVA EnergyRight programs to its customers.
Sign up through the online portal, by appointment at the office, or at 256-552-1400 option 4 (Monday-Friday 8 a.m. to 4:30 p.m.) with a photo ID, a second ID such as a Social Security card, and your lease or your purchase contract, deed or settlement statement. The electric deposit is $145 on the schedule updated January 1, 2026, may be waived with a favorable credit report, and is refunded after five years of good payment history or when service ends.
Start service with Decatur Utilities →Sources: decaturutilities.com, decaturutilities.com, decaturutilities.com
Deposits, ID, and supplier choice in Alabama
Deposits. Under Alabama PSC General Rule 8, a regulated utility may require a cash deposit from a new, disconnected or former customer, capped at an estimated bill for two regular billing periods, earning 7% annual interest credited on the December bill, and a residential deposit in good standing must be refunded with interest by the December following 24 months of retention. These rules bind Alabama Power; cooperatives, municipal systems and TVA are outside PSC regulation and set their own deposit policies. (psc.alabama.gov)
Choosing a supplier. No residential supplier choice: the PSC's Electricity Policy Division sets rates only for Alabama Power, the state's sole investor-owned electric utility, and EIA's 2024 Alabama profile records zero energy-only (competitive supplier) retail sales, so your utility is fixed by your address (https://psc.alabama.gov/electricity/; https://www.eia.gov/electricity/state/alabama/).
The PSC does not regulate electric cooperatives, municipal utilities or the Tennessee Valley Authority and cannot resolve complaints about them, so a dispute with a north-Alabama TVA distributor or a co-op goes to that utility, not the Commission. Alabama's average retail electricity price was 11.90 cents per kWh in 2024 (EIA state profile, average retail price).
Sources: psc.alabama.gov, psc.alabama.gov, psc.alabama.gov, eia.gov
Help paying an electric bill in Alabama
Alabama Department of Economic and Community Affairs (ADECA), delivered through county Community Action Agencies
Household gross income for the month before applying at or below 150% of the federal poverty level (FY26 chart effective October 1, 2025: $1,956 a month for one person, $2,644 for two, $4,019 for four), Alabama residency, Social Security cards for everyone in the household, the applicant's photo ID and a recent heating or cooling bill in the name of the head of household or their spouse; ADECA does not take applications itself. Heating and winter crisis run October 1 to April 30 and cooling and summer crisis May 1 to September 30, with FY2026 benefits of $280-$580 for heating and $320-$520 for cooling (per the federal LIHEAP Clearinghouse).
Sources: adeca.alabama.gov, adeca.alabama.gov, liheapch.acf.gov, acf.gov
Alabama Weatherization Assistance Program
ADECA, through local community action agencies and the Central Alabama Regional Planning and Development Commission
Household income not exceeding 200% of the federal poverty level, with priority for the elderly, people with disabilities and families with children; the home gets an energy audit, cost-effective alterations and health and safety checks, and applications go to the agency serving your county, not ADECA.
Source: adeca.alabama.gov
Alabama Power low-income base charge discount
Alabama Power
Customers receiving Supplemental Security Income (SSI) or Medicaid for Low Income Families (MLIF) may save $14.50 each month; apply at 1-800-257-2726 or 1-800-245-2244 or at a local Alabama Power business office.
Source: alabamapower.com
Alabama Power, in partnership with the Salvation Army (per Alabama Power's assistance page; the LIHEAP Clearinghouse Alabama profile, last updated April 2025, still names the American Red Cross as administrator)
Low-income Alabamians who are age 60 or older and/or disabled; apply at your local Salvation Army office or call 205-328-2420.
Sources: alabamapower.com, liheapch.acf.gov
Alabama Business Charitable Trust Fund (ABC Trust)
Alabama Power-funded trust, applications through local Community Action Agencies
Low-income Alabamians and those facing temporary financial hardship; apply through a local Community Action Agency.
Source: alabamapower.com
Programs that change what you pay
- Rooftop solar (net metering)limited
- Alabama Power's solar page offers no net-metering option; it buys excess output from systems of not more than 100 kW under Rate PAE (April 2026 billings: 3.45-5.47 cents per kWh depending on option, season and hour) minus a $0.91 monthly base charge for single-phase service, and customers with on-site generation also fall under Rate Rider RGB, whose firm back-up option on the standard Family Dwelling rate adds a Capacity Reservation Charge of $5.41 per kW of nameplate capacity (secondary service). Interconnection goes through PowerClerk and should be approved before you buy panels.
Sources: alabamapower.com, alabamapower.com, alabamapower.com
- Community solarnone
- Alabama Power's solar page describes no residential community-solar subscription; the residential alternative it points to is Clean Energy Select, which lets you buy renewable energy certificates, and it does not sell or install home panels.
Source: alabamapower.com
- Time-of-use ratesavailable
- Alabama Power's optional Time Advantage plans (12-month term) charge 30.2554 cents per kWh on the Energy plan during summer peak, weekdays 1-7 p.m. CST June-September, and 12.2554 cents in winter peak, weekdays 5-9 a.m. November-March, against 10.2554 cents in economy hours that cover up to 90% of the year; April, May and October have no peak. The Demand version pairs a 25.6092-cent peak with a $1.50 per kW demand charge and a $14.50 base charge versus $25 on the Energy plan.
Sources: alabamapower.com, alabamapower.com
Questions people ask before moving to Alabama
How far ahead should I set up electricity before moving to Alabama?
Alabama Power connects on weekdays and treats an order placed by midnight as eligible for next-day service, so a few days' notice is enough for an existing home (new construction needing installation takes longer). Huntsville Utilities asks for two business days and tells you not to use the online form if you need it sooner, and Baldwin EMC connects an existing meter the next business day but needs up to two weeks for a new service point.
Sources: alabamapower.com, hsvutil.org, baldwinemc.com
Can I pick my electricity supplier in Alabama?
No. The PSC's Electricity Policy Division sets rates for Alabama Power alone, cooperatives and municipal systems are exempt from state regulation, and EIA records zero energy-only (competitive supplier) retail sales in Alabama for 2024, so your address decides whether you are an Alabama Power customer, a member of one of the 22 electric cooperatives, or a customer of a TVA-supplied municipal or co-op system in the north.
Sources: psc.alabama.gov, eia.gov, areapower.coop
Will I have to pay a deposit to start electric service in Alabama?
Often, yes: Alabama Power runs an Equifax credit check and, if it wants a deposit, charges twice the residence's average monthly bill (the PSC caps regulated-utility deposits at two billing periods and requires 7% interest); Huntsville Utilities' deposit policy sets a standard $300.00 residential deposit, cut to $100.00 for online applicants with an excellent credit score; Baldwin EMC's standard deposit is the greater of $350.00 or two and a half months' estimated billing unless your credit score waives or reduces it; Decatur Utilities asks $145 for electric, waivable with a favorable credit report. Prepaid plans such as Baldwin EMC's Prepay Power skip the deposit entirely.
Sources: alabamapower.com, psc.alabama.gov, hsvutil.org, baldwinemc.com, decaturutilities.com, baldwinemc.com
What documents do I need to open an electric account in Alabama?
Alabama Power asks for the primary account holder's Social Security number, the service address and a start date; Huntsville Utilities wants two valid unexpired government IDs (or a STAR ID alone); Decatur Utilities wants a photo ID, a second ID such as a Social Security card, and your lease or your deed, purchase contract or settlement statement; Baldwin EMC needs a signed paper application plus the meter number or 911 address.
Sources: alabamapower.com, hsvutil.org, decaturutilities.com, baldwinemc.com
Is there help paying electric bills in Alabama?
LIHEAP, run by ADECA through county Community Action Agencies, covers households at or below 150% of the federal poverty level with heating help October 1 to April 30 and cooling help May 1 to September 30 (FY2026 benefits of $280-$580 heating and $320-$520 cooling, per the federal LIHEAP Clearinghouse). Alabama Power customers on SSI or Medicaid for Low Income Families can get a $14.50 monthly discount, Project SHARE helps low-income customers 60 or older or disabled through the Salvation Army per Alabama Power (the LIHEAP Clearinghouse profile still names the American Red Cross), and ADECA's Weatherization Assistance Program serves households up to 200% of poverty.
Sources: adeca.alabama.gov, liheapch.acf.gov, alabamapower.com, adeca.alabama.gov
Who provides electricity in north Alabama, and does the PSC regulate them?
North Alabama is Tennessee Valley Authority territory: TVA, the nation's largest public power provider serving 10 million people, supplies power to local power companies such as Huntsville Utilities (TVA contract since 1940) and to 8 of the state's 22 electric cooperatives in northern Alabama, while PowerSouth serves the other 14 in the west, center and south. The PSC does not regulate cooperatives, municipal utilities or TVA and cannot resolve complaints about them, so billing and deposit rules come from each distributor.
Sources: tva.com, hsvutil.org, areapower.coop, psc.alabama.gov
Researched 2026-10-16 from utility, regulator, and agency pages; every statement links to where it was read. Rules change: confirm deposits and program dates with the utility or agency before you rely on them.
Every state ranked by residential rate, updated weekly: Electricity Rates by State →