State Rep. Mack Butler (R-Rainbow City) joined Mobile radio's FM Talk 106.5's "The Jeff Poor Show" earlier this week to discuss his legislation requiring the Alabama Public Service Commission to hold public rate case hearings every three years.
According to Butler, HB475 was filed to address Alabama's growingly exorbitant electricity rates, while increasing much-needed oversight of the PSC.
The lawmaker said his decision to file the legislation was spurred by a publicly released phone call between Alabama Power's top lobbyist and an Energy Alabama policy manager focusing on the possibility of changing the PSC from an elected body to one that is appointed.
"There was another bill that was starting to move, and then all of a sudden, we heard an Alabama Power lobbyist on the phone that most of us thought was trying to sell the people out. That infuriated people and infuriated me," noted Butler. "And so I went to work on another bill, and I learned the issue was that the PSC was not holding rate case hearings."
Butler argued that the bill will force utility companies to justify their costs in a public and transparent setting.
"This would cause them to open the books. It would let us look over their shoulder. But most of us don't think they're going to be able to justify [the costs], because they have been fighting tooth and nail to keep this from happening, and then we hear that phone call, which was really a slap in the face of the people of our state," Butler continued. "The main component we've got in our legislation, right now, you know, we, the ratepayers, are paying their lobbying costs and a lot of other costs. It reigns that in for the people. It provides for the impeachment of the commission members if they do not do their job. The legislation actually requires them to notify and include public participation in this process."
He added, "We want this done in the light of day, in front of everybody. And you would think, if the power company is so crystal clear and honest, that they would be opening their books, but they've gone to great lengths to not do that."
The lawmaker said the legislation will also cap the return on equity above the regional average for utility companies.
"It's what they've been getting all this time, and they've been far exceeding the national average. I was able to negotiate and go with the cap at the regional average. We know that our electricity costs from investor-owned utilities."
"Alabama Power was the highest in the region, third highest in the nation and about 40% higher than TVA," Butler concluded.
HB475 passed the Alabama House of Representatives on Tuesday and now heads to the Senate.
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