2020’s Most Energy-Expensive States: Where Alabama Ranks

BIRMINGHAM, AL — With so many people staying indoors the last five months due to the COVID-19 pandemic, energy costs have soared, and Alabama is no exception. In fact, Alabama ranked among the 10 states with the highest energy costs in the country.

Despite electricity costs in Alabama ranking slightly lower than the national average, other energy sources have Alabama ranked among the most expensive, placing the state 9th among the country's most expensive.

Personal finance website WalletHub compared the average monthly energy bills in each of the 50 states and the District of Columbia using a special formula that accounts for the following residential energy types: electricity, natural gas, motor fuel and home heating oil.

Here is where Alabama ranked in the WalletHub study (1=Most Expensive; 25=Avg.):

• Avg. Monthly Energy Bill: $301
• 27th – Price of Electricity
• 2nd – Electricity Consumption per Consumer
• 8th – Price of Natural Gas
• 8th – Motor-Fuel Consumption per Driver

In the U.S., energy costs eat between 5 and 22 percent of families’ total after-tax income, with the poorest Americans, or 25 million households, paying the highest of that range, according to WalletHub. And lower energy prices don’t necessarily equate to savings.

While commercial and industrial electricity use has declined in 2020 due to business closures during lockdowns, residential electricity use has actually increased, which means many people will be forking over larger checks to their power companies.

In Alabama, while electricity use per consumer is the second highest in the country, electrical costs are below average. So, what can Alabamians do to save on energy, especially during the COVID-19 pandemic when so many people are working from home?

“What you really want to think about is the biggest user in the house, and that is our air conditioning system,” said Jim Goolsby, senior market specialist with Alabaam Power. “One degree of adjustment on your thermostat is equal to about 3 percent to 5 percent difference in usage.”

To keep your home comfortable on warm summer days, Goolsby recommends using a ceiling fan instead of lowering the thermostat on your air conditioning unit.

“A lot of folks’ tolerance levels can be adjusted by a couple of degrees based on that air movement in the house,” Goolsby said. “So, utilize those ceiling fans. It’s going to help you out a lot when it comes to being comfortable inside the house.”

Other suggestions Goolsby said will collectively save money include:

• Open windows and turn off heating, ventilating and air conditioning (HVAC) when temperature and humidity are mild and pollen levels are lower.
• Turn off ceiling fans in unoccupied rooms.
• Use paper products to reduce dishwasher usage.
• Only run washing machine and dishwasher when full.
• Avoid using the oven and dishwasher in the hottest parts of the day.
• Cook and grill outside.
• Turn off lights when not needed.