The state's utility regulatory board has refused to reconsider its new rate structure for Alabama Power Co.
The Public Service Commission voted 2-1 Tuesday to reject a request by AARP to reconsider the rate plan. The vote was the same as the PSC's decision in August to approve the rate structure. The PSC's top attorney recommended rejecting AARP's request and said the organization for older Americans had not presented any new issues.
Alabama Power Co. predicts that its rates will remain level through 2014, despite the forecast of consumer savings when the state's utility regulatory board approved a new rate plan.
The Public Service Commission voted 2-1 last month to revise its rate stabilization plan for Alabama Power. Commission President Twinkle Cavanaugh forecast the change would result in annual savings for consumers of $30 to $110.
Alabama Power is defending its rate structure before the state's utility regulatory board.
Officials of Alabama Power told the Public Service Commission on Wednesday that its rates are below the national average. Officials said the total annual electric bill for the average Alabama home is above the national average because of hot, humid summers and because Alabamians tend to use more electricity and less of other energy sources, such as natural gas and fuel oil, than other Americans.
Some groups will call for rate changes for Alabama Power Co. when the state's utility regulatory board wraps up hearings Wednesday on the state's largest electric utility.
AARP and Alabama Arise have filed position papers saying the current rate structure is too favorable to the company. Alabama Power says the rate structure is fair and reasonable, and it allows the company to provide a reliable product despite residential demand that is higher than the national average.
The state Public Service Commission is starting a review of Alabama Power Co. rates.
The commission holds the first of a series of meetings Wednesday in Montgomery. The commission announced it will have a company overview and discuss the fundamentals of the rate structure on the opening day.
The commission recently wrapped up a similar review of Mobile Gas rates. The commission plans to make a decision about the company's natural gas rates on June 6.