Heather Knight

Elmore Autauga News

Alabama Power customers will see rate changes in 2025. This includes a 4.87% increase for private customers. The announcements were made yesterday at the Alabama Public Service Commission (APSC) annual board meeting.

The Alabama Public Service Commission (APSC) sets utility rates, including rates for Alabama Power, through a detailed regulatory process designed to ensure fairness for both customers and the utility.

These costs are determined by costs of services, operating costs, maintenance and infrastructure costs, returns to investors, fuel costs, employee salaries and economic factors such as fuel costs, material prices, resource costs, etc.

Periodic rate reviews are conducted to review the utility’s financial records and operations. The utility companies must justify their existing tariffs and any proposed changes.

EAN reached out to both APSC and Alabama Power and they responded that they cannot comment at this time.

Although Alabama Power cannot comment at this time, they have issued a press release outlining their reasons for the rate changes (see below).

Despite inflationary pressures on the energy industry, Alabama Power has worked to mitigate the impact of rising costs. Since 2017, the company has reduced its own expenses by over $100 million. This proactive approach has helped protect customers from major bill increases, even as the cost of essential supplies has increased dramatically. For example, in the last five years, prices for transformers have increased by 204%, for electricity poles by 56% and for electric cables by 134%.