Alabama Power exceeds allowed rate of return range, refunding over $62 million next fall

(Credit: Alabama Power)

Alabama Power customers might be due for a refund next fall.

On Tuesday, the Alabama Public Service Commission (APSC) ruled that year-end financial results for the Alabama Power Company exceeded the rate of return range in 2022 by $62 million.

This is in spite of three rate hikes issued by the power company last year. In December, representatives from Alabama Power said the rate increases were necessary due to unprecedented inflation and poor economic conditions.

A spokesperson from the APSC told 1819 News that Alabama Power would issue refunds to customers through their August 2023 bills. This way, customers will receive refunds when bills are higher due to warmer weather.

Alabama Power will only issue refunds to customers who consumed power last July, August and September.

The exact dollar amount each customer will see is still being calculated and will not be made available for several days.

1819 News asked the spokesperson to specify whether or not Alabama Power's expected rate of return was impacted by the utility company's recent rate hikes. The spokesperson said that the APSC had no further comment.

Read more from our news partner at 1819news.com. 

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