Alabama Power announces customers will see reduction of retail rates in 2025

An announcement from the Alabama Public Service Commission (APSC) and Alabama Power said that customers will see a 1.88% reduction in overall retail rates in 2025.

"As Alabamians are feeling the impact of inflation on household expenses, Alabama Power has worked hard to lessen the effects of rising costs on customers’ bills by reducing the company’s costs by more than $100 million since 2017," said an email from Alabama Power on Tuesday.

The announcement noted that inflation has caused an increase of the price of items such as transformer by 204%, power poles at 56% and electrical wires by 134%.

The APSC announced a 2.04% rate reduction due to lower fuel costs in July and then an additional 3.27% reduction in December.

"The APSC is also returning $96 million, or a 1.44% reduction, to Alabama Power retail customers in 2025 based on a legal judgment awarded to the company in 2024," states the email. "These funds will be distributed as bill credits to customers from January to March 2025. The U.S. Court of Federal Claims awarded Alabama Power damages resulting from the federal government’s failure to meet its obligations for the handling of spent nuclear fuel."

The commission also approved a request from Alabama Power to keep Rate CNP-C flat next year, "which further lessens the impact of rising costs on customer bills." Rate CNP-C represents the compliance costs that are associated with federal government mandates and environmental regulations, said the announcement.