MONTGOMERY — Governor Kay Ivey signed legislation on Thursday expanding the Public Service Commission (PSC) into law.
The bill expands the PSC from its current three seats to seven seats, elected by the public in each congressional district. The bill also creates a new cabinet-level secretary of energy, who would control the commission's administrative functions.
“The Alabama Legislature passed HB475 to put a freeze on electric rates and to give the people of Alabama broader representation on the Public Service Commission,” Ivey said in a statement on Thursday. “I have signed the bill and will look forward to building on my record of strong appointments to the PSC. Alabama is a top 10 state when it comes to cost of living, and we are the number one state for plain affordability. As I have said before, for Alabama to remain the best state to live, work and raise a family, we have to grow the state, while keeping our cost of living low.”
The secretary of energy appointment will be made by Ivey’s successor in the governor’s office.
The bill was opposed by Energy Alabama, a clean energy advocacy group.
“We are disappointed. She had the opportunity to send this bill back and demand the legislature pass something that actually lowers bills for Alabama Power customers. She refused. The people of Alabama deserved better, and we will not pretend otherwise. But we want to be clear about something: this fight is not over,” Daniel Tait, executive director of Energy Alabama, said in a statement on Thursday. "By July 15, 2026, Governor Ivey must appoint four new Public Service Commission members. The rate freeze expires January 1, 2029, which means the next legislative session becomes the next battleground for the real utility bill relief Alabamians were promised and did not get. On behalf of the people ignored today, we will be in every one of these upcoming fights. To the commissioners who will serve under this new structure: It is your duty to take this critical job seriously. The people of Alabama expect you to use the tools this law and existing laws provide — the rate hearing process, the subpoena power, the statutory mandate to consider how Alabama Power’s rates compare to the rest of the country — on behalf of the people you serve. Not on behalf of Alabama Power. Not on behalf of the Governor who appointed you. You must serve the interests of the ratepayers who have no choice but to pay whatever you allow.”
He continued, “Energy Alabama has never shied away from a fight against long odds. We helped beat back HB 392 when nobody thought we could. We helped change the shape of this bill when Alabama Power thought they had it locked up. We are grateful to the legislators who stood firm for their constituents when it mattered, and we remain committed to working with anyone who truly seeks to lower the burden of high utility bills. This law may now be on the books. But, the fight for the people of Alabama is not finished.”
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