By Alabama Public Radio
Montgomery, AL – The Alabama Publice Service Commission Tuesday approved two separate price increases for Alabama Power Company. Alabama Power officials say one reason for the increases is to recover the increased cost the company is paying for natural gas because Hurricanes Katrina and Rita damaged or destroyed 179 gas and oil platforms in the Gulf of Mexico. The PSC voted two to one to allow Alabama Power to increase rates over the next two years. The increase will allow the company to recover about 227 million dollars for the higher cost of producing energy. Alabama Power had originally asked for an increase that would allow them to recover the cost in one year. The rate increase will cost the average Alabama Power customer about six dollars and 12 cents a month. The commission also voted unanimously to allow Alabama Power to charge customers two dollars and 48 cents a month to recover money the company lost restoring service after recent natural disasters.