Alabama Power and the Alabama Public Service Commission (APSC) approved a 4.87% rate increase for the company's customers at a Tuesday hearing.
The 4.87% "rate stabilization and equalization adjustment" was finalized at "Alabama Power's informal meeting with the Alabama Public Service Commission on Rate Stabilization and Equalization and Rate Certified New Plant was held this morning in Montgomery," according to an Alabama Power spokesman.
The spokesman said on Tuesday that the average Alabama Power customer would still see a net decrease on average in their power bill in 2025 compared to 2024.
"Actions taken by the Alabama Public Service Commission and Alabama Power throughout 2024 will result in a 1.88% reduction in overall retail rates in 2025. As Alabamians are feeling the impact of inflation on household expenses, Alabama Power has worked hard to lessen the effects of rising costs on customers' bills by reducing the company's costs by more than $100 million since 2017," Anthony Cook, a spokesman for Alabama Power, said. "A reduction in overall retail rates is notable considering recent inflationary pressures affecting the U.S. energy industry. For example, in the past five years, Alabama Power has seen the cost of a transformer increase by 204%, while power poles are up 56% and electrical wires by 134%. In July, the APSC announced a 2.04% rate reduction due to lower fuel costs. This month, the commission announced an additional 3.27% reduction for the same reason."
Cook continued, "The APSC is also returning $96 million, or a 1.44% reduction, to Alabama Power retail customers in 2025 based on a legal judgment awarded to the company in 2024. These funds will be distributed as bill credits to customers from January to March 2025. The U.S. Court of Federal Claims awarded Alabama Power damages resulting from the federal government's failure to meet its obligations for the handling of spent nuclear fuel."
"A Rate Stabilization and Equalization adjustment of 4.87% was made to account for the rising cost of electricity due to inflation, as well as long-term investments Alabama Power is making in grid resilience and power generation. Additionally, the commission approved Alabama Power's request to keep Rate CNP-C flat in 2025, which further lessens the impact of rising costs on customer bills. Rate CNP-C represents compliance costs associated with federal government mandates and environmental regulations," Cook said.
Alabama Power is a subsidiary of Southern Company, which recently reported third-quarter earnings of $1.5 billion.
To connect with the author of this story or to comment, email caleb.taylor@1819News.com.
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