Average Alabama Power bills expected to go up $22.81 in January 2023

Alabama Power rate increase
Published: Dec. 6, 2022 at 10:38 PM CST
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BIRMINGHAM, Ala. (WBRC) - Alabama Power announced yet another increase to customer power bills on Tuesday. The adjustment will be seen on the January 2023 bill.

It is the third adjustment for Alabama Power customers just this year. In July, they announced a $6 average increase; last month, a $10 average increase and now another increase nearing around $7 on average. An Alabama Power representative says this increase is different than the past two.

The utility says while the last two increases were based on increasing fuel costs, this one comes as a result of their yearly evaluation of costs and needs and say it’s going to cost more to follow federal regulations.

So starting in January 2023, your rate will be higher than normal. Alabama Power says for a typical customer using 1,000 kilowatt hours per month, the increase will be $6.81.

“This is not something that we want to do as a company but it’s something that we have to do to maintain service, keep the safety and reliability in place, meet our federal mandates and serve customers in the way that they deserve and expect,” said Michelle Tims with Alabama Power.

Plenty of other utility companies are increasing their rates too and eventually, all the bills add up and customers are feeling it.

Meghan Hancock says the rate increase was unexpected.

“I’m actually a first-time home owner and so it can be really expensive with all the other bills and then when the companies start increasing the bills over and over, it just gets super expensive,” she said.

The bills will add up even more next month for those who use Alabama Power, Birmingham Water Works, and Jefferson County Sewer.

An average customer will spend an extra $2.70 for sewer, $1.55 for water, and $22.81 for power each month. It all adds up to $27.02 more this coming January than last January. That’s $324.72 more in 2023 for the same water and power in 2022.

Depending on your size of home, billing program, and usage, those dollar amounts can fluctuate.

The Alabama Public Service Commission who approved the third Alabama Power rate increase said they plan on following up with our request and sending a statement on Wednesday.

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