Alabama Power filed a proposal with the Alabama Public Service Commission on November 21 to maintain current electricity rates through 2027. The announcement breaks from typical utility practices and comes after discussions between the company, the commission and the Alabama Attorney General’s Office.
Moses Feagin, the utility’s executive vice president and chief financial officer, outlined the plan in a two page letter to regulators. The proposal would keep existing rate factors in place for the next two years, providing what the company describes as predictability for customers facing rising costs in other areas of their budgets.
The filing represents a shift from the company’s previous trajectory. Alabama Power projected a nearly 2% rate reduction for 2025 just one year ago. Now the utility is pledging to freeze rates at current levels rather than implement changes in either direction.
Acquisition costs pushed to 2028
A key component of the proposal involves delaying rate adjustments connected to Alabama Power’s purchase of the Lindsay Hill Generating Station. The Public Service Commission approved the utility’s acquisition of the 895 megawatt gas fired power plant near Billingsley in August…