It's time to say what too many of us have already known for some time – Alabama's electricity rates are too high. That is not acceptable.
President Trump is working hard to reverse the high effects of the last four years of inflation. Yet even with his efforts, many Alabamians are still struggling to pay their electric bills. U.S. Sen. Katie Britt (R-Montgomery) recently said that it’s unacceptable that Alabama has the highest electricity rates in the Southeast. She is right!
WBRC in Birmingham also recently reported that Alabama's electricity bills are the third highest in the nation, behind Hawaii and Connecticut. Why is that? It gets hot here but, let's face it, it also gets hot in Georgia, Mississippi, Louisiana and Florida, and all of those states have lower electricity rates than Alabama.
The Alabama Public Service Commission (PSC) has the responsibility of regulating utility rates of companies that hold monopolies in our state, the largest of which provides electricity for a significant portion of Alabama. Like other companies regulated by the PSC, that company must pay the PSC for the privilege of being regulated.
The PSC's mission is, “To provide a balance between regulated companies and consumers in order to provide consumers with safe, adequate and reliable services at affordable rates.” Based on Britt's statement and WBRC's report, the PSC commissioners have failed to achieve that mission. It's time those commissioners become familiar with their mission statement and start providing a true balance, one that no longer hurts consumers.
For starters, commissioners should listen to the ratepayers, not just the utility companies. It might surprise you to learn that when considering rate increases, the PSC doesn't hold hearings in which the public and experts can participate. They haven't since 1982. Why don't they want to listen to those most affected by their votes?
It might also surprise you to learn that the PSC doesn't spend all the money it receives from the utility companies it regulates. The PSC gets no money from the general fund. But guess what the PSC does with the money they collect but don’t need? “Send it back to the ratepayers who paid it!” you might be thinking. That's what should happen, but no, they send it over to the general fund. That money then gets spent on projects the ratepayers may never enjoy and in parts of Alabama they may never visit.
And it's not just a few thousand dollars either. According to PSC annual reports, the PSC sent $33 million dollars to the general fund between 2021 and 2024. As a conservative, I believe this is wrong and should stop! This is a hidden tax on the utility bills of Alabamians who get their utilities from the companies regulated by the PSC.
We need to end the hidden tax on utilities in Alabama.
Brent Woodall is an attorney who lives in North Alabama with Marie, his wife of 36 years, and their children, Hannah and Daniel. During his legal career, Brent has served as an Assistant Attorney General, an Assistant United States Attorney, and for over three years as the Chief of Staff for a Commissioner at the Alabama Public Service Commission.
The views and opinions expressed here are those of the author and do not necessarily reflect the policy or position of 1819 News. To comment, please send an email with your name and contact information to [email protected].
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