Alabama industrial electricity rates

Analyst note

The Alabama industrial price sat above the U.S. average in 0 of 10 years; the gap was -0.88 ¢ in 2015 and -0.88 ¢ in 2024. In the 2024 ranking Alabama sits between Montana (7.59 ¢) one place above and North Dakota (7.25 ¢) one place below; the top of the list is 26.88 ¢ away and the bottom 1.82 ¢. Alabama was 42nd in 2015 with 6.03 ¢ and is 38th now; a rise in the table. Alabama industrial prices rose in 5 of 9 years. The largest rise was +22.0% in 2022, and the largest fall -8.0% in 2023. The Alabama price peaked at 7.72 ¢ in 2022 and bottomed at 5.87 ¢ in 2020; 2024 is 6.1% below the peak and +23.5% from the low. Compounded, that is +2.07% a year in Alabama, +0.25 points against the U.S. Alabama buys 3.07% of all U.S. industrial electricity with 0.65% of the accounts, so the average Alabama account uses 4.73 times the national average.

A middle price: 7.25 ¢/kWh for Alabama industrial accounts, rank 38 of 51, -10.8% against the U.S. Alabama: +20.2% over nine years, or +2.1% a year, matching the national +17.7% by 2.6 points; 2022 was the biggest single move (+22.0%) and 2022 the high.

Last year's change in Alabama was +2.1% and still rising. Against the residential price of 15.18 ¢ the gap is 7.93 ¢. Industrial sales are 36.3% of Alabama electricity sold, and an average Alabama account used 365,285 kWh a month, an implied bill near $26,483.

Counting revenue instead of kWh, Alabama industrial accounts bring in 22.1% of Alabama sector revenue on 36.3% of the kWh, a discount of 14.2 points that comes from the price level: 7.25 ¢ here against 15.18 ¢ for residential and 13.64 ¢ for commercial accounts. The average Alabama industrial account uses 365,285 kWh a month, 8 of 51 among states on that measure; a residential account uses 0.00 times as much and a commercial account 0.01 times. Industrial accounts are 0.26% of the 2,795,343 accounts in Alabama.