MOBILE, Ala. (WKRG) — The typical Alabama Power customer will receive a $25 credit in October, following a decision Tuesday by the Alabama Public Service Commission.
The newly approved credit is based on lower expenses for the fuel Alabama Power uses at its generating plants. Alabama Power has seen lower fuel prices during the COVID-19 pandemic.
Customers will receive a total of $100 million from the fuel-related credit.
A typical residential customer using 1,000 kilowatt-hours of electricity per month is expected to receive a credit of $25, according to Alabama Power. Customers who use more energy will receive a larger credit.
“We appreciate the commission voting today to expedite this credit for our customers.”Richard Hutto, Alabama Power’s vice president of Regulatory Affairs
A 3-percent rate reduction took effect in January was based on earlier estimates of lower costs for fuel and other expenses for 2020. That rate reduction equates to about a $4.50-per-month reduction for the typical residential customer