Last week, the Alabama Public Service Commission (APSC) ruled that year-end financial results for the Alabama Power Company exceeded the rate of return range in 2022 by $62 million and ordered the utility to plan on issuing refunds to customers in August 2023. Now, the APSC predicts that the refunds will only amount to $23 for the average residential customer.
Alabama Power's excessive rate of return range follows three rate hikes issued by the power company last year. In December, representatives from Alabama Power said the rate increases were necessary due to unprecedented inflation and poor economic conditions.
The APSC announced the estimation in an updated statement issued on Friday.
Alabama Power will only issue refunds to customers who consumed power last July, August and September.
1819 News asked the spokesperson to specify whether or not Alabama Power's expected rate of return was impacted by the utility company's recent rate hikes. The spokesperson said that was the only comment APSC had at this time.
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