Alabama’s new energy law shakes up utility oversight

Governor Kay Ivey signed the Power to the People Act only two days after the substitute legislation was filed in a committee and was raced through both chambers, ending with a major shakeup.

HB475 Quick Facts

  • Expands Alabama Public Service Commission (APSC) from three to seven members.
  • Four new members will be appointed by the governor and in place by July 2026.
  • Seven member commission will represent geographical areas mirroring Alabama’s congressional map.
  • Creates Secretary of Energy who will have broad authority over the APSC and serve at the pleasure of the governor.
  • Base retail rate will be frozen through January 2029, the impact is unclear.
  • Formal hearings under oath can be called to discuss rates if 5 of 7 members vote in favor, or if called by Sec. of Energy.

The Power to the People Act is lawmakers’ response to growing public frustration over Alabama power bills, which rank among the highest in the country.

The law falls short of immediate or long-term solutions to lower power bills. While it prohibits base retail rates from increasing from Oct. 2026 through Jan. 2029, it’s worth noting the base rate is already set on a fixed band. We discuss this in greater depth later in the story…

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