Commercial electricity in Birmingham, Alabama

Electric utilities serving Birmingham

These are the utilities EIA records in Jefferson County and Shelby County, the 2 counties it spans. EIA lists a utility in a county when it has customers anywhere in it, so this is everyone with a presence, ordered by commercial customers across Alabama, not a statement about any one address. Prices are EIA’s averages over all of each utility’s commercial customers: revenue divided by kWh.

Find the list for a single ZIP Code with the utility lookup, or set utilities side by side with the comparison tool.

What businesses in Birmingham pay

Across Alabama, businesses paid an average 14.77¢ per kWh over the 12 months to August 2026, 6.5% above the U.S. average of 13.87¢, and up 3.2% on the 12 months before. That ranks Alabama 15 of 51, where 1 is the highest price. In 2025 the average commercial account in the state used 4,829 kWh a month, about $705 a month at the state price; that is a mean pulled up by a few very large users, so most small businesses use less.

A city has no price of its own: two businesses on the same street can pay very different amounts per kWh, because the rate schedule, the size of the peak and, where it is allowed, the supply contract matter more than the location. The Alabama page has the state’s price history since 2010 and every utility with at least 500 commercial customers.

Choosing a supplier in Birmingham

Alabama commercial customers buy both delivery and supply from their regulated utility. There is no competitive retail supply market for general commercial accounts, so the useful work is tariff selection, demand management, bill verification and efficiency — not switching suppliers.

Where prices are heading

EIA does not forecast single states. For the East South Central census division, which includes Alabama, its November 2026 Short-Term Energy Outlook puts the average commercial price at 13.59¢ per kWh for 2026 and 13.91¢ for 2027, up 6.3% from 13.09¢ in 2025. The forecast for every region.

About Birmingham

The Census Bureau estimates Birmingham had 195,893 residents on July 1, 2025, down 2.2% from 200,226 in 2020. It spans 2 counties, most of its people in Jefferson County.

Other cities in Alabama

• Huntsville
• Mobile
• Montgomery
• Tuscaloosa

Common questions

Who provides electricity to businesses in Birmingham?

EIA lists Alabama Power, Coosa Valley Electric Coop Inc, City of Bessemer Utilities and City of Tarrant as electric utilities in Jefferson County and Shelby County. Which one serves a given address depends on the street; the utility on an existing bill is the definitive answer, and a utility can confirm service for a new site.

What is the average commercial electricity rate in Birmingham?

There is no official figure for a city. EIA publishes prices by state and by utility: Alabama Power averaged 15.95¢ per kWh for its commercial customers in 2025, and Alabama averaged 14.77¢ over the 12 months to August 2026. A business’s own price depends on its rate schedule, its demand and, where it can choose, its supply contract.

Can a business in Birmingham choose its electricity supplier?

Alabama commercial customers buy both delivery and supply from their regulated utility. There is no competitive retail supply market for general commercial accounts, so the useful work is tariff selection, demand management, bill verification and efficiency — not switching suppliers. The state page for Alabama explains how it works and who regulates it.