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Public Service Commission Approves Rate Hike

By Associated Press

Montgomery, AL – Alabama Power Company customers will pay about 67 dollars more annually starting next month after the Public Service Commission approved the utility's request to raise rates by 5-point-6 percent.

Its the second such hike this year.

Commissioners Jim Sullivan, Jan Cook and Susan Parker voted unanimously Monday to allow the utility to increase an energy cost recovery charge from 24 dollars per one-thousand kilowatt-hours of electricity to 31 dollars beginning July first.

The power company also announced it will reduce a monthly disaster reserve charge from 2 dollars, 48 cents to 75 cents.

Below-normal rainfall this year and last year reduced power production from Alabama Power's dams, forced the utility to burn more coal and natural gas at other power plants to make up the difference.

In January, Alabama Power also received a 5-point-29 percent rate increase. In 2004, the P-S-C approved three rate increases for the utility that included an environmental surcharge, for a total of nearly 12 percent.

(Copyright 2007 by The Associated Press. All Rights Reserved.)

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