Alabama Power Customers To Receive A Credit In October

BIRMINGHAM, AL — Alabama Power customers will see something different on their bills in October — in the form of a $25 credit. The Alabama Public Service Commission approved the credit Tuesday at their monthly meeting.

The newly approved credit is on top of a 3 percent rate reduction that customers are already enjoying in 2020. Combined with prior rate actions, customers are receiving approximately $300 million in benefits this year, according to Alabama Power officials.

The newly approved credit is based on lower expenses for the fuel Alabama Power uses at its generating plants. Customers will receive a total of $100 million from the fuel-related credit.
A typical residential customer using 1,000 kilowatt-hours of electricity per month is expected to receive a credit of $25. Customers who use more energy will receive a larger credit.

"We appreciate the commission voting today to expedite this credit for our customers," said Richard Hutto, Alabama Power’s vice president of Regulatory Affairs. "Many of our customers have been hurt by COVID-19. We hope this credit will provide some additional relief at this difficult time."

Because of the impact of the pandemic on many Alabamians and Alabama businesses, Alabama Power proposed to the commission that an adjustment be made for fuel expenses earlier than normal, with the benefits credited directly to customers.