MONTGOMERY, Ala. (WBRC) – Proposed legislation would fundamentally transform how monopoly utilities are regulated in Alabama, force regulators to hold traditional utility rate cases and limit profits for monopoly utility providers. This comes amid increased public scrutiny over energy prices. A WBRC investigation revealed Alabamians pay some of the highest power bills in the country.
Representative Mack Butler (R-Rainbow City), introduced a substitute bill for HB475 in a House committee hearing Wednesday that proposes sweeping changes to Alabama’s regulatory landscape.
HB475 Quick Facts
- Legislation would require Alabama Public Service Commission (APSC) to hold traditional rate cases for regulated utilities at least every three years. This hasn’t happened in Alabama in more than 40 years. We discuss why below.
- Rate cases would be opened as evidentiary hearings under oath, granting Alabama Public Service Commission (APSC) subpoena power to gather evidence.
- Proposes capping profits by prohibiting Alabama Power from earning a return on equity (ROE) higher than the national average for investor-owned utilities.
- Prohibits Alabama Power from passing on costs to ratepayers for lobbying, advertising, political spending, charitable giving and association dues.
- The APSC could be impeached if rate cases aren’t opened.
Butler told the committee this is the first step toward making energy more affordable in the state, noting people in his district are having to choose between buying food and medication or paying their power bill.
“There’s something clearly wrong when we’re the highest in the region, third highest in the nation and about 40% higher than TVA,” Butler explained, noting the price of investor-owned electricity in Alabama…