Alabama ranks 2018’s 4th most energy-expensive state

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Energy is expensive. In fact, it’s one of the biggest household expenses for American consumers — costing between 5 and 22 percent of families’ total after-tax income.

While energy prices are typically lower in the south, that doesn’t always equate to lower costs. Consumption is a key determinant in the total amount of an energy bill and in Alabamians usually don’t think twice before cranking up the A/C when they’re hot.

With July typically being America’s most energy-expensive month, personal finance site WalletHub took a look at the total monthly energy bills in each of the 50 states and the District of Columbia to glean a better understanding of Americans’ energy costs relative to their location and consumption habits. WalletHub analysts used a special formula that accounts for the following residential energy types: electricity, natural gas, motor fuel and home heating oil.

Energy consumption and costs in Alabama (1= most expensive; 25= avg.):

  • Avg. monthly energy bill: $341
  • 26th: Price of electricity
  • 2nd: Electricity consumption per consumer
  • 7th: Price of natural gas
  • 8th: Motor-fuel consumption per driver

Alabama is in good company with its neighbor-states. Georgia ranks the 3rd most energy-expensive state and Mississippi the 5th worst.

Here’s how Alabama compares to the rest of the country:

Source: WalletHub