Alabama Power Scales Back Rate Hike Request

Alabama Power Public Service Commission The company had been looking for its largest rate hike in 25 years. The Public Service Commission votes on the request October 1.

by The Associated Press

Published: Tue, September 23, 2008 - 10:57 am CST

MONTGOMERY, Ala. (AP) - Alabama Power Co. has agreed to scale
back its rate hike request after negotiations with its largest
customers.
Alabama Power unveiled the agreement Tuesday at a hearing before
the Alabama Public Service Commission. Alabama Power had been
seeking a 14.6 percent rate hike for residential customers but is
now dropping that to 8.2 percent.
Industrial customers of the state's largest utility had been
looking at a rate hike of nearly 25 percent but the new agreement
would reduce that to 14 percent.
The reduction comes because Alabama Power will take longer to
recover its fuel cost than originally proposed. The increase is due
to the utility paying more for fuel than it is getting back in
rates.
The agreement is subject to approval by the three members of the
Public Service Commission.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

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mattoxtr Says:

Wed, Sep 24, 2008 at 7:56 am

They need to stop running tv ads and use the money they save instead of a price hike. There is no need for tv and/or radio ads. Its not like you can change power companies if you are not happy with them or if their rates are too high so why the need for tv ads? It seems that the advertising department is wasted at Alabama Power. There is simply no need for it.

carl Says:

Wed, Sep 24, 2008 at 4:35 am

They’re still using the same old ploy of asking for twice of what they think they might get without too much hassle and they’re pretty sure the PSC will give them what they ask for. If they get a fuel adjustment increase I think everyone else should too and that would mean everyone would be back where they started. Only when a few are allowed to increase their prices and no one else, can greed run amok.