MONTGOMERY — The House and the Senate approved legislation on Wednesday expanding the Public Service Commission (PSC).
The bill expands the PSC from its current three seats to seven seats elected by the public.
The Power To The People Act, sponsored by State Sen. Clyde Chambliss (R-Prattville), adds four new seats to the commission and requires that all seven posts be elected by congressional district.
To create staggered terms, four commissioners would initially be appointed by the governor in July 2026, with two serving two-year terms and two serving four-year terms. Commissioners would run for office by congressional district beginning in November 2028 and, upon election, serve six-year terms.
A provision in the bill outlaws rate increases for the next three years — until a majority of the board is elected — but it continues to allow rate reductions to be voted on and implemented at any time.
The Power To The People Act also creates a new cabinet-level secretary of energy, a position recently suggested by Republican gubernatorial candidate U.S. Sen. Tommy Tuberville (R-Auburn), who would oversee the commission's administrative functions.
The Power to the People Act was amended into a House bill by State Rep. Mack Butler (R-Rainbow City) in the Senate committee on Tuesday. Due to the changes, the bill no longer includes a rate case hearing but includes a formal hearing “to examine specific issues relative to the rate making process and to provide greater transparency and direction to the establishment of base retail rates, with testimony provided under oath.” The hearing could be triggered by a vote of five of the seven commissioners in favor or at the request of the Secretary of Energy. The Senate also approved an amendment by State Sen. Roger Smitherman (D-Birmingham) on Wednesday that two of the initial appointments are from lists submitted by House and Senate minority leaders.
“The Alabama House and Senate stood united to reform how utilities are regulated and demand an unprecedented amount of accountability for consumers across the state. In addition to outlawing rate increases for the next three years while still allowing rate reductions at any time, the Power to the People Act shines a bright, public spotlight on how rates are set,” House Speaker Nathaniel Ledbetter (R-Rainsville) and State Sen. Pro-Tem Garlan Gudger (R-Cullman) said in a joint statement on Wednesday. “With this legislation, regulated utilities will be required to publicly testify about their finances under oath with the threat of perjury and justify the rates that they charge their customers. At a time when more than $30 billion in rate increases are pending in states across the country, the Legislature took strong action to protect and shield Alabamians from higher rates for the next several years. Moving forward, the expanded commission will have the authority to call formal rate hearings and evaluate Alabama’s rates against national and regional averages, which represents a major step toward greater transparency, accountability, and long-term savings for ratepayers across the state.”
After the amended House bill passed the Senate on Wednesday, Butler motioned for the House to non-concur with the changes. Instead, Butler’s motion was tabled by a 68-31 margin. The House instead voted to concur with the changes by a 72-26 margin. The bill now heads to Gov. Kay Ivey for her signature.
Butler told reporters on Wednesday he voted against the bill because, “At the end of the day, this was not a piece of legislation that I could support.”
“We’ve got to get some relief to the people back home,” he added. “We’re the highest in the region, third-highest in the nation, 40% higher than TVA. If you look at the Southern Company, which serves Georgia which has over double the population of Alabama, Mississippi and Alabama. We’re 16% of the customer base and 33% of the profit. It tells you there’s a problem. I know they’re a $4.4 billion profit. Alabama accounts for almost $2 billion of that profit so I really wanted to take a hammer to it.”
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