Alabama Lawmakers Push Bills to Curb Soaring Electricity Costs and Regulate Power Rates
Electricity costs in Alabama have climbed faster than in neighbouring states, sparking debate in the legislature. Lawmakers are now pushing bills to limit rate hikes and increase oversight of Alabama Power. Two key proposals aim to cap profits and force regular reviews of pricing decisions.
A recent investigation revealed Alabama Power's residential customers faced the highest total bills among the 100 largest US utilities in 2024. The findings intensified pressure on the state's regulators and lawmakers to act. US Senator Katie Britt has also highlighted that Alabama currently has the highest electric rates in the Southeast.
Two bills are now under consideration. Senator Clyde Chambliss introduced SB360, which would block any electricity rate increases until 2029. The bill also proposes expanding the Public Service Commission from three to seven members, with each representing a congressional district. Meanwhile, Representative Mack Butler's HB 475 takes a different approach. It would cap Alabama Power's return on equity at the regional average and mandate formal rate case hearings. The House is also set to vote on a separate bill requiring regular, transparent reviews of utility pricing. The state's Public Service Commission had already agreed to a two-year rate freeze in December 2025, postponing a planned increase. But lawmakers argue stronger, long-term measures are needed to control costs.
If passed, the bills would mark a significant shift in how Alabama regulates electricity pricing. Formal hearings and profit caps could lead to lower bills for customers. The outcome will depend on votes in the House and Senate in the coming weeks.
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