How proposed legislation could impact your power bill

MONTGOMERY, Ala. (WBRC) - Two bills that could impact the price you pay for power are moving through the Alabama Legislature.

• HB475 would require the Alabama Public Service Commission (APSC) to hold rate cases, which hasn’t happened in more than 40 years, and cap profits. 
• SB360 would expand the APSC from three at-large positions to seven members that would represent districts mirroring Alabama’s congressional map. The fiscal report states it will cost around $2 million dollars to onboard those positions. Notably, it creates a Secretary of Energy that would run the APSC, who would be appointed by the governor. The legislation would also freeze base electricity rates through 2029. 

SB360 sailed through the Senate last week, passing out of the upper chamber two days after it was filed with a 32-0 vote. The House is scheduled to vote on HB475 Tuesday, March 17.

This legislation comes after a WBRC investigation determined Alabamians pay some of the highest electric bills in the country.

What this means for ratepayers

Both bills would address whether certain utility expenses can be passed on to consumers. All of these items are already excluded:

• Lobbying
• Charitable contributions
• Advertising (limited by 50%)

Despite those existing restrictions, Senate Pro Tempore Garlan Gudger (R), says this is where the immediate costs savings rest with SB360.

“It’s currently at 50%, it will probably go down to about 20%,” Gudger said of the advertising expenses. “They can only put advertising in that’s public safety for the people of Alabama. Everything else that’s out there cannot go back into the bill. Number two, there cannot be any lobbying fees that go into this bill. Those are totally out of the bill now and out of the rates for the people back home. There’s grant writings that they put in there. Our bill should reduce rates immediately.”

The day SB 360 passed out of the Senate, WBRC also requested information from the APSC regarding the amount of advertising expenses passed along to consumers over various fiscal years. This story will be updated to reflect that information after it’s received.

Gudger and Sen. Clyde Chambliss, (R), say the newly-elected members will be accountable to the public to lower their power bills.

Rate Cases vs Rate Hearings

Bill sponsor Chambliss told reporters last week the bill would force the APSC to hold rate hearings annually, but that’s not new. The APSC has been holding rate hearings where the public can ask the company questions about their bills for years.

WBRC covered the last rate hearing with Alabama Power in December 2025.

“It’s my understanding we haven’t had one of those in decades, this one requires that to happen,” Chambliss said, likely referring to a rate case.

Most states use traditional rate cases to regulate for-profit monopoly utilities, but Alabama hasn’t opened a traditional rate case on Alabama Power in more than 40 years. Instead, they use adjustable formula rates. You can read more about these rates here.

Chambliss explained further cost-saving measures weren’t included in this bill because it could create legal issues.

When pressed on what kind of legal issues, he said, “I’ll stay on what I just said. We’re just trying to make sure we don’t create legal issues that cause a freeze or an injunction or that sort of thing.”

Gudger says it’s unclear whether the Senate will entertain an amendment that would force the APSC to hold rate hearings, noting the expense.

“It costs $15 million to be able to go through that,” Gudger said of the rate case. “So, it depends on how often it is and if it really reduces rates or if they’re just wanting the control of it. And that’s one of the reasons we didn’t do it in ours. We really want to reduce the utility rates now and we know we did that in our bill.”

Gudger’s office says that amount came from conversations with the APSC.

A portion of rate case expenses are typically recovered through power bills over time.

WBRC pulled federal records associated with Georgia Power, which also falls under parent company Southern Company. The records showed Georgia Power accounted for $4.3 million dollars in expenses connected to the rate that was litigated in the 2022 rate case.

Rep. Mack Butler, R-Rainbow City, feels strongly that rate cases must to be part of any legislation aimed at lowering electric prices.

“I feel strongly that any bill addressing the PSC must include provisions that require Alabama Power to open its books, bring its profits in line with comparable utilities across the southeast, and provide families and consumers with the financial relief from sky high power bills,” Butler said in a written statement.

Butler is open to streamlining both bills under the right conditions.

Regulatory Spending Comparison

Federal data shows Alabama Power outspends Georgia Power on regulatory-related expenses, despite the lack of rate cases.

According to 2024 Federal Energy Regulatory Commission (FERC) filings:

• Alabama Power reported $20.2 million in regulatory expenses
• Georgia Power reported $12.2 million in regulatory expenses

Georgia Power serves about 1.3 million more customers than Alabama Power.

During its most recent rate case in 2022, Georgia Power’s total regulatory expenses reached approximately $17.9 million dollars, which is still below Alabama Power’s 2024 total.

These expenses fall under the FERC account which includes:

• Legal fees
• Expert fees
• Regulatory filings
• Compliance-related work

Experts weigh in

Ari Peskoe, director of the Electricity Law Initiative at the Harvard Law School Environmental and Energy Law, says conducting a rate case is an act of consumer protection and believes it’s worth the expense.

“Absolutely, there could be billions of dollars at stake,” Peskoe told WBRC during an interview in late 2025. “It’s worth the time and money. We don’t just trust a monopolist who provides these essential services for profit.”

Among those who work in this field, Peskoe says the APSC’s lack of holding a rate case for more than 40 years is something most everyone in his industry is familiar with.

“The Alabama Commission is legendary in that it hasn’t held a rate case for Alabama Power in more than 40 years,” explained Peskoe. “A rate case is just the foundational aspect of regulating electric utilities, this is the core proceeding where regulators are supposed to scrutinize how the utility is spending the public’s money; and it just doesn’t seem to be happening in Alabama.”

Other energy-related legislation this session includes HB392, which proposed transitioning the ASPC from elected to appointed members, which was ultimately killed by the Senate. The bill drew scrutiny after a WBRC obtained and released a recording of an Alabama Power lobbyist discussing the legislation.

These bills were introduced as federal documents showed Alabama Power’s net profit rose $113 million in 2025.

You can read all of WBRC’s Price of Power investigation by clicking or tapping here.

Get news alerts in the Apple App Store and Google Play Store or subscribe to our email newsletter here.