How Alabama Power Raised Bills and Maintained Dominance
Lax or absent regulation by Alabama state authorities has resulted in Alabama Power customers facing some of the highest electricity bills in the United States. At Alabama Power’s headquarters in downtown Birmingham, a statue of Electra, the Greek goddess of lightning, overlooks the city, symbolizing the utility’s powerful presence.
An investigation by Inside Climate News into the 100 largest electric utilities in the country revealed that Alabama Power had the highest average total residential bills. This report originally appeared on Inside Climate News, a nonprofit, nonpartisan organization focused on climate, energy, and environmental coverage.
Wired for Profit: Alabama Power’s Influence
This article is the first in a series analyzing Alabama Power’s control over electric rates, renewable energy policy, pollution, and politics in Alabama.
Customer Experiences
Mary Rosenboom, a resident of McCalla, Alabama, expresses frustration over rapidly rising electricity prices. Like about 1.5 million Alabamians, she is required to pay monthly bills approved by Alabama Power and the state’s Public Service Commission. Rosenboom worries that a proposed massive hyperscale data center near her home will push costs even higher.
Working as a sales professional, she says her electricity bills are a significant financial strain. To manage costs, she often chooses not to use her air conditioner during much of the day. At times, she relies on high-interest credit cards just to cover basic electricity expenses.
“Mary Rosenboom is fed up. Like 1.5 million other Alabamians, she pays ever-increasing electricity prices set by Alabama Power and approved by the state’s Public Service Commission.”
Rosenboom’s situation illustrates the challenges many Alabama Power customers face amid rising rates and limited regulatory oversight.
Summary
Alabama Power's minimal state regulation has led to some of the nation’s highest residential electricity bills, deeply impacting customers' finances and raising concerns over future cost increases.
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