Home / Business and Economy / Alabama Power Freezes Rates for Two Years
Alabama Power Freezes Rates for Two Years
25 Nov
Summary
- Alabama Power will keep electricity rates steady for two years.
- The company will use internal cost containment measures.
- Rate adjustments for a new power station are delayed until 2028.
Alabama Power has filed with the Alabama Public Service Commission to keep electricity rates unchanged for customers over the next two years. This move aims to provide customers with greater predictability regarding their power bills, especially amid rising costs for other goods and services. The company emphasized its understanding of budget constraints faced by families and businesses.
The utility plans to rely on internal cost containment strategies to forego rate increases. This includes maintaining current fuel charges and deferring adjustments related to the acquisition of the Lindsay Hill Generating Station until 2028. These measures are intended to offer customers a degree of rate stability.
Furthermore, Alabama Power is requesting authorization to use customer refunds from Rate RSE for its Natural Disaster Reserve, which currently has a negative balance. The company also seeks to utilize 2024 nuclear production tax credits to offset retail costs. These commitments are contingent on unforeseen events like severe weather or market fluctuations.
