AUBURN, Ala. (WTVM) – Starting in 2025, Alabama residents and business owners will feel relief in their wallets due to reduced electricity costs.

Alabama Power announced a reduction in electric rates starting in January 2025.

“As small business owners, we are happy every time we find a way to save money and help our business,” said Brain Wirth.

Wirth is the owner of the Collegiate Hotel in Auburn. Homeowners and business owners are looking for a break amid the increase in goods and services.

According to Alabama Power, total electricity costs have increased over 29% since January 2021. Wirth says he will take every opportunity to save money.

“That was something very exciting for us in terms of seeing where there might be cost savings next year after all the inflation that we suffered last year,” he said.

The Alabama Public Service Commission is returning $96 million to customers, according to Alabama Power. They will receive compensation from the US Federal Court.

Alabama Power says the lawsuit came after the federal government failed to meet its obligations in dealing with spent nuclear fuel.

The utility said customers’ monthly bills will fall by 2% from January to March 2025.

“Anytime they can come back and support their customers and help them save money, it’s always good for Alabama Power and good for the customers,” Wirth said.

According to him, the cost of electricity in the hotel is almost $5,000 per month. Wirth said some of that comes from personal heating and cooling in their guest rooms.

Still, he said they’re looking at saving about $100 a month.

“Our room supply system uses electric heat and electric cooling, so any time we see savings on the electric side, it will impact our bottom line,” Wirth added.

Alabama Power said it is aware of the rising costs of goods and services and is actively trying to reduce costs where possible. They said they have been able to reduce costs by more than $100 million since 2017.

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