MONTGOMERY — The Alabama House Committee on Transportation, Utilities and Infrastructure carried over a bill on Wednesday aimed at forcing the Public Service Commission (PSC) to be more transparent.
State Rep. Mack Butler (R-Rainbow City) introduced House Bill 475 last week, requiring the PSC to hold a public rate case hearing once per year. On Wednesday, he presented a substitution that would require a meeting once every three years, which he said was similar to other states.
His bill would also prevent a public utility from including lobbying and advertising costs in rate determinations and would allow PSC members to be impeached for failure to hold the required meetings.
"I am 62 years old. The last time the PSC had a public rate case hearing, I was in high school," Butler said to committee members. "We are the highest utility cost in the region, third highest in the nation, and we're about 30-40% higher than TVA. So clearly, we have a problem."
Butler said the higher rates could deter businesses from moving to and investing in the state. By forcing the PSC to "do its job" and provide transparency, he is confident his bill will help lower rates.
"We've got to get our competitiveness back," he added. "If they can justify their rates, so be it. But it would be transparent with the people… I have people telling me they are choosing between energy costs and medicine, energy costs and food… You look at the Southern Company in other states, why are they so much cheaper than us? Our Public Service Commission is not doing the job. The goal of this bill is to force them to do the job."
Several committee members asked for language in the bill to be clarified, such as impeaching the PSC president rather than all members, given that the president is the only one authorized to call meetings, and specifying that the bill applies only to investor-owned utilities.
State Rep. Leigh Hulsey (R-Helena) defended the PSC, saying it was unfair to say "nothing is being done," citing her recent work with the Commission on data center policy.
Butler conceded that it was "not a perfect piece of legislation" and said he was willing to address the issues raised during the meeting.
Before adjourning, Committee chair State Rep. Steve Clouse (R-Ozark) said, "This issue, ever since it came up a month ago, I think the overriding point that I think a lot of people and legislators in particular are making is that one thing that needs to be done is to have rate hearings that have not been held since 1982. All this other stuff has gotten in the way of trying to get to the ultimate goal. So, we'll continue working on this."
Butler's bill comes after legislation to change the PSC from an elected body to an appointed one was pulled from consideration for lack of Senate support. Butler also said public outrage over a leaked phone call between Alabama Power's former governmental affairs director, R.B. Walker, and John Dodd, an Energy Alabama policy manager, inspired him to draft the bill.
Walker recently resigned as Alabama Power's governmental affairs director to pursue other opportunities.
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