Alabama Power commercial electricity rates

• Average commercial price, 202515.95¢per kWh, all commercial customers
• vs Alabama average+9.2%state commercial average 14.60¢
• Commercial customers208,814largest of 42 in Alabama
• Average use5,293 kWha month per commercial customer
• Average bill$844a month per commercial customer
• Since 2015+43%from 11.13¢ per kWh
• Outages108 mina year per customer · US average 124

Alabama Power is an investor-owned utility serving 59 counties in Alabama. Among the 42 Alabama utilities in EIA’s 2025 sales data with 500 or more commercial customers, it is the largest, with about 53% of the state’s commercial customers. EIA lists it as Alabama Power Co.

Alabama Power commercial electricity prices, 2015 to 2025

In 2015 Alabama Power billed its commercial customers an average of 11.13¢ per kWh. In 2025 the figure was 15.95¢, so it rose 43% over 10 years. The average for all commercial customers in Alabama rose 35% over the same period. The latest year, 2025, is the highest of the 11 on record here. Between 2024 and 2025 it rose 7.5%.

Average use and average bill are the utility’s commercial sales and revenue divided by its commercial customers and by twelve. The bill is an all-in figure: energy, delivery, demand and fixed charges together. A few very large customers pull both averages up, so most businesses use and pay less than the average.

Residential, commercial and industrial prices at Alabama Power

In 2025 the average commercial price at Alabama Power was 11% below the residential figure and 87% above the industrial one. Larger customers take power at a higher voltage and use it more steadily, so at most utilities the average falls from residential to commercial to industrial. Which class an account falls in is the utility’s decision, and the line between commercial and industrial is drawn differently from one utility to the next.

How Alabama Power’s commercial rates are set

Alabama Power is investor-owned, so its rates are set in cases before the Alabama Public Service Commission and published in a tariff, which is a public document. A commercial account is billed on a rate schedule, chosen by the size of the account and the voltage it takes power at, and a schedule usually combines a fixed monthly charge, a charge per kWh and, above a certain size, a demand charge on the highest rate of draw in the month. The schedule code is printed on the bill. There is no competitive supply market for ordinary commercial accounts in Alabama, so the levers are the schedule, the peak and the amount used.

Meters, time-varying rates and net metering at Alabama Power

EIA counts 184,786 commercial meters at Alabama Power in 2025, and 184,786 of them (100%) are advanced meters (AMI), which record use at least hourly and report it to the utility at least daily. An advanced meter is what makes interval data possible, and interval data is what shows when a building’s peak demand happens.

At Alabama Power, 4,591 commercial customers were on a time-varying rate in 2025, about 2.2% of its commercial customers. A time-varying rate charges more in some hours than in others, so when a business uses power matters as well as how much. The kinds Alabama Power reports offering commercial customers are time-of-use pricing.

How reliable is Alabama Power’s electric service?

Alabama Power customers went without power for an average of 108 minutes in 2025, excluding major storms, with about 0.85 interruptions per customer. The average across U.S. utilities reporting the same way is 124 minutes. With major storms counted the figure was 410 minutes. This utility reports on a different measurement standard, so the comparison is only approximate. These are averages over every customer of every class, so they describe the system and not any one street.

Where Alabama Power serves

EIA records Alabama Power serving customers in 59 Alabama counties: Autauga, Baldwin, Barbour, Bibb, Blount, Bullock, Butler, Calhoun, Chambers, Cherokee, Chilton, Choctaw, Clarke, Clay, Cleburne, Coffee, Conecuh, Coosa, and 41 more. A county can be shared between utilities, so this does not tell you who serves a given address. The utility that serves an address is the one named on its bill.

EIA lists Southern Company as its balancing authority, the body that keeps supply and demand matched minute by minute across the area.

Other utilities in Alabama

The average each billed its commercial customers in 2025. The Alabama page has the state’s own figures and every utility with 500 or more commercial customers.

• Huntsville Utilities (12.13¢)
• City of Florence Utilities (13.13¢)

What these figures can and cannot tell you

• They are averages over every commercial customer. A utility whose commercial customers are mostly large averages fewer cents per kWh than one serving mostly small shops, so a lower figure can mean larger customers and not a lower rate.
• They are not a rate schedule. None of these figures is a charge printed in Alabama Power’s tariff, and nothing here works out a bill from one. The tariff index lists the utilities whose filed schedules are quoted on this site.
• They are annual and final. EIA publishes utility figures once a year. The Alabama page carries the state’s trailing 12 months, which is more recent and still preliminary.

For one building, the cost estimator gives a range by building type, size and state, and price by utility sets every utility side by side. Commercial vs residential vs industrial compares the classes in every state.

Data: every year of these figures, for this utility and every other with a page, is in one CSV, free to use with credit to the U.S. Energy Information Administration and this site. To cite this page: Alabama Power commercial electricity rates, CommercialElectricityRates.com, from EIA Form EIA-861 final 2025 data.

Common questions about Alabama Power

What is the average commercial electricity rate at Alabama Power?

Alabama Power billed its commercial customers in Alabama an average of 15.95¢ per kWh in 2025, according to the U.S. Energy Information Administration. That is 9.2% above the Alabama commercial average of 14.60¢. It is the utility’s commercial revenue divided by its commercial sales, so it describes the whole class and is not the rate on any one schedule.

How much is the average commercial electric bill at Alabama Power?

About $844 a month in 2025, on average use of about 5,293 kWh a month. That is Alabama Power’s commercial revenue divided by its 208,814 commercial customers. A few very large accounts pull the average up, so most businesses pay less than this.

Have Alabama Power’s commercial electricity rates gone up?

The average Alabama Power billed commercial customers rose 43% between 2015 and 2025, from 11.13¢ to 15.95¢ per kWh. The Alabama commercial average rose 35% over the same period.

How reliable is Alabama Power’s electric service?

Alabama Power customers averaged 108 minutes without power in 2025, excluding major storms, against a 124-minute average for U.S. utilities reporting the same way (EIA).

Does Alabama Power use smart meters for businesses?

EIA counts 184,786 advanced (AMI) meters among Alabama Power’s 184,786 commercial meters in 2025, which is 100%. An advanced meter records use at least hourly, which is what makes interval data and time-varying rates possible.

Is this the rate my business will pay Alabama Power?

No. It is an average over every commercial customer, from a corner shop to a campus. What one business pays depends on its rate schedule, how much it uses and how hard it draws at its peak. The schedule code is printed on the bill, and the schedule itself is in Alabama Power’s tariff.