(The Center Square) – Alabama is 29th in electricity affordability in the Energy Affordability 2026 report from the American Legislative Exchange Council.
ALEC released its analysis on Wednesday. North Dakota and Louisiana were the leaders in the review of electricity prices and energy affordability indicators as measured for each of the 50 states.
Alabama was 28th a year ago. The report uses the most recent information available for consistency; this means electricity price data is from 2024, and gasoline and diesel fuel prices are from 2025.
Additionally for context, the United States and Israel launched military strikes against Iran on Feb. 28, and the prices of fuel have climbed since. Global energy infrastructure has been impacted by the action and the blockade of the Strait of Hormuz.
ALEC says, “Alabama remains in the middle tier of states in terms of energy affordability. As a net exporter of electricity, the state benefits from a diverse and reliable generation mix led by natural gas and nuclear power, supplemented by coal and hydroelectric power.
“Alabama does not have a renewable portfolio standard, cap-and-trade program, or statutory net metering mandate, helping to limit policy-driven cost pressures. Five grid incidents were reported in the most recent year, primarily related to weather and vandalism, highlighting ongoing reliability considerations.”
ALEC suggests adoption of the Affordable, Reliable and Clean Energy Security Act framework to “provide clearer statutory definitions of affordable, reliable, and clean energy while reinforcing a balanced approach to cost stability, grid reliability, and long-term competitiveness.”
The report says the average retail price in cents per kilowatt-hour is 11.90. Total retail sales in megawatt-hours are 142.9 million.
Natural gas (45%), nuclear (31%), coal (15%), hydroelectric (6%) and wood (2%) represent the top generation sources.
The state does not have a cap-and-trade. This means permits are not issued for trade to incentives for emission reductions.
