The Alabama Public Service Commission approved Tuesday a rate moratorium requested by Alabama Power.
The consent order imposes a two-year halt on increases to the fuel cost to generate electricity, the cost for operating Alabama Power’s power-generating plants, the cost of purchasing power from other companies, the cost of complying with government regulations andthe rate that guarantees a specific rate of return for the company, known as Rate Stabilization Equalization (RSE).
“We know budgets are tight, and power bills are a real concern for many families and businesses,” said Moses Feagin, Alabama Power’s executive vice president, chief financial officer and treasurer. “This commitment gives customers more certainty and predictability around electric rates at a time when many other household and business costs are rising.”
The move came amid growing concerns over affordability around the country, particularly as electricity rates continue to rise. In Georgia, where Alabama Power’s sister company Georgia Power operates, concerns over electricity rates led voters to elect two Democrats to that state’s Public Service Commission, the first time Democrats won a statewide constitutional office in Georgia since 2006.
Alabama historically has some of the highest residential power rates in the South.