Gas vs. electric driving costs · adjust vehicle and price period below
Why is it like this in Alabama?
Alabama Power's residential customers pay some of the highest total electric bills of any major U.S. utility — an investigative analysis found Alabama ranks near the top nationally for total bill burden despite a stated rate around 16.8¢/kWh. A rate freeze through 2027 stabilizes costs in the near term, but Alabama Power is simultaneously building new gas-fired generation that will trigger additional rate increases beyond the freeze period. At the January 2026 baseline, electricity is modestly cheaper per mile for a typical Alabama PHEV driver — though the rate freeze through 2027 and planned gas plant construction point toward narrowing that advantage in coming years.
In the news · Alabama
Investigative piece finding that Alabama Power's residential customers pay the highest total electric bills of any of the 100 largest U.S. utilities — a direct drag on PHEV electric-mode savings for the state's residents.
The Alabama PSC froze Alabama Power rates through 2027, halting increases to fuel adjustment, RSE, and operating costs — providing a stable (though already high at ~16.79¢/kWh) cost baseline for PHEV electricity calculations through the freeze period.
Covers Alabama Power's push to build new gas generation and the public backlash over rate increases, illustrating why Alabama's electricity costs remain among the nation's highest despite being a relatively low-income state.
Curated coverage of Alabama's EV/PHEV cost, policy, and infrastructure story. External links open in a new tab.
Southeast region comparison
| State | Electric ¢/mi | Gas ¢/mi | Cheaper | Annual diff |
|---|---|---|---|---|
| West Virginia | 4.5¢ | 7.5¢ | ⚡ Electric | $363/yr |
| North Carolina | 4.1¢ | 7.0¢ | ⚡ Electric | $346/yr |
| Arkansas | 3.7¢ | 6.4¢ | ⚡ Electric | $319/yr |
| Louisiana | 3.8¢ | 6.4¢ | ⚡ Electric | $313/yr |
| Tennessee | 4.0¢ | 6.6¢ | ⚡ Electric | $310/yr |
| Georgia | 4.4¢ | 6.9¢ | ⚡ Electric | $307/yr |
| Florida | 4.8¢ | 7.3¢ | ⚡ Electric | $295/yr |
| Kentucky | 4.3¢ | 6.8¢ | ⚡ Electric | $295/yr |
| Virginia | 4.8¢ | 7.3¢ | ⚡ Electric | $294/yr |
| Mississippi | 4.3¢ | 6.4¢ | ⚡ Electric | $247/yr |
| South Carolina | 4.7¢ | 6.6¢ | ⚡ Electric | $230/yr |
| Alabama | 4.9¢ | 6.5¢ | ⚡ Electric | $201/yr |