On Tuesday, Alabama Power announced a rate increase for customers starting in 2023.

The Alabama Public Service Commission approved Alabama Power's request to increase its rates on Tuesday, which will affect customers' monthly bills.

"Our customers expect us to deliver reliable and resilient energy 24/7, 365 days a year," Alabama Power said in a statement. "In order to best serve our customers, we must prepare for the future."

"As a result, customers will see an adjustment on January 2023 bills driven primarily by compliance with federal requirements, as well as unprecedented inflation and economic conditions. These federal mandates and regulations, with which the company and utilities across the country must comply, continue to put pressure on customer costs."

The increase follows a rate adjustment of about $10 per month set to take effect this month to cover fuel costs.

In the announcement, Alabama Power said the additional costs would be around $6.81 for residential customers using 1,000 kWh per month.

According to the U.S. Energy Information Administration (EIA), the average U.S. residential customer uses approximately 909 kWh per month. In Alabama, that average is 1,211 kWh Per month, 31.45% more energy than the national average.

Data from the EIA also says the average rate nationwide is 16.32 cents per kWh, a change of 15.4% from September 2021.

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