PSC Backs New Rate Plan For Alabama Power

Alabama Public Service Commission

Alabama's utility regulatory board has approved a new rate plan for Alabama Power Co., but commissioners disagree on how it will affect customers.

The state Public Service Commission voted 2-1 Tuesday to base Alabama Power's rates on weighted cost of equity, rather than return on equity, which has been used for the last 31 years.

PSC President Twinkle Andress Cavanaugh says customers should see annual savings between $30 and $110, depending on their usage. Commissioner Jeremy Oden says residential customers and small businesses should save between $30 and $45 a year.

But Commissioner Terry Dunn says those projections are based on hypothetical figures, and he doesn't expect rate payers to see any change.

An Alabama Power spokesman says the company is still reviewing the impact of the commission's vote.

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