MONTGOMERY — Legislation expanding the number of members of the Public Service Commission (PSC) passed the Senate unanimously on Thursday.
State Sen. Pro-Tem Garlan Gudger (R-Cullman) announced on Tuesday the "Power To The People Act," a measure that 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 Public Service Commission already approved a two-year rate freeze for Alabama Power in December.
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 people of Alabama are frustrated. They’re frustrated that our power rates have increased faster than surrounding states and most of the states in the United States,” Chambliss said on the Senate floor on Thursday.
The bill was filed on Tuesday and passed the Senate on Thursday. It now heads to the House for their consideration.
“We did want to go and try to make it move a little faster because we’re getting to the end of session, and the key for us is trying to get it down to the House so they have enough time to review it and be able to allow it to pass,” Gudger said.
The Alabama House Committee on Transportation, Utilities and Infrastructure passed legislation on Wednesday by State Rep. Mack Butler (R-Rainbow City) that requires the PSC to hold regular public rate case hearings. The hearings require utilities to justify rates with sworn testimony.
When asked about rate case hearings, Gudger said, “I think it depends on that rate case because it costs $15 million to be able to go through that, so it depends on how often it is and if it really reduces rates.”
“That’s one of the reasons we didn’t do it in ours. We really want to reduce the utility rates now, and we know we did that in our bill, so if something comes back, we’ll have to look at the fiscal note and just really see how much does it truly cost the ratepayers,” Gudger said.
Butler said in a press release on Thursday, “Following today’s passage of a Senate bill reorganizing how the structure of the Public Service Commission, I expect my legislation, which brings meaningful reform to Alabama Power’s rate structure and cuts utility costs for customers across the state, will be voted upon by the House next week.”
“As these two measures cross from one chamber to the next, it is likely that negotiations about merging the bills will begin, which is common in the legislative process,” Butler said. “I feel strongly that any bill addressing the PSC must include provisions that require Alabama Power to open its books, bring its profits in line with comparable utilities across the southeast, and provide families and consumers with the financial relief from sky high power bills. Reorganizing the PSC is meaningless unless it is required to hold regular rate case hearings that haven’t taken place since the days when George Wallace was elected governor.”
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