Even In Alabama, State Legislature Moving To Reform Utility Commission - But It's Not What It Appears To Be
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“The people of Alabama are frustrated,” state Sen. Clyde Chambliss, a Republican, said in session Thursday. “They’re frustrated that our power rates have increased faster than most of our neighboring states, and in fact, most of the states. ”Chambliss is the sponsor of a bill, unanimously approved by the Senate Thursday, that would dramatically reshape the Alabama Public Service Commission, which regulates the state’s largest electricity provider, Alabama Power. Chambliss’s bill would expand the commission from three members to seven, one for each of the state’s congressional districts, and prohibit electricity rate increases until 2029.
Meanwhile, the Alabama House is expected to vote next week on a bill that would force Alabama Power to undergo regular formal rate case hearings, something it has not had to do since 1981. The House bill also includes a profit cap for electric utilities in the state. “I feel like now it’s the best chance ever, and I don’t know that you’ll get another opportunity anytime soon,” said Rep. Mack Butler, the Republican who sponsored the House bill. “This was kind of a perfect storm.”
The moves come after months of debate over high electricity prices in Alabama. An Inside Climate News investigation found Alabama Power’s residential customers saw the highest total power bills of 100 of the country’s largest utilities in 2024, based on federal filings. Since then, the voices advocating for reform have grown louder across the political spectrum. The state’s all-Republican Public Service Commission reached an agreement for a two-year rate freeze last December, delaying a planned rate increase due to Alabama Power’s purchase of an existing natural gas power plant earlier that year.
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Ed. - However, if you thought it was too good to be true . . .
Energy Alabama, a nonprofit consumer advocacy group, is urging its members to oppose SB 360, saying the bill gives too much power to the Secretary of Energy to set the agenda and steer the public service commission. In addition, the new PSC commissioners will be at first appointed by the governor, with elections being held on a staggered basis over the next several years until the seats are all elected. “This will not generate the savings that they are looking for,” said John Dodd, policy manager for Energy Alabama, after a committee hearing Wednesday. “Instead of forcing the commission to do a better job at lowering the rates that Alabama Power is allowed to charge their customers, they have, instead, locked in some of the highest rates that we are seeing in the southeastern part of the United States.”
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https://insideclimatenews.org/news/12032026/alabama-public-service-commission-utility-regulation-electric-bills/