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Katie Britt concerned ‘Alabama has the highest power rates in the Southeast’

AL.com · last updated

Alabama U.S. Sen. Katie Britt this week repeated her concerns about what Alabamians are paying for electricity, even as Alabama Power announced a two-year rate freeze.

“I’m concerned that Alabama has the highest power rates in the Southeast,”1819 News quoted Britt as saying this week.

That was the same comment she made earlier in November.

“As we work diligently to roll back regulation and unleash energy dominance, I will continue to be focused on working with local and state partners to drive down energy costs for hardworking families across our state,” Britt told 1819 News on Tuesday.

Efforts by AL.com to reach Britt’s office for comment on the rates were not successful.

Her comments came after the Alabama Public Service Commission approved a proposal by Alabama Power to keep in place certain rates related to fuel charges, and to delay until 2028 any adjustment to rates dealing with its acquisition of the 895-megawatt gas-fired Lindsay Hill Generating Station.

This came after the utility announced a nearly two percent rate reduction in 2025.

“Providing stability for ratepayers is one of our highest priorities, and this proposal delivers exactly that,” said APSC President Cynthia Lee Almond.

In a statement following the PSC decision, Alabama Power Executive Vice President Moses Feagin said the company knows “budgets are tight, and power bills are a real concern for many families and businesses.”

“This commitment gives customers more certainty and predictability around electric rates at a time when many other household and business costs are rising,” he said. “Since 2017, Alabama Power has reduced operating expenses by about $100 million despite the cost of equipment, such as transformers, poles and wires, increasing significantly during this time.

“We will not waiver in our efforts to strengthen the energy grid and invest in smart, storm-resilient infrastructure, so customers receive the reliable service they deserve in communities across our state.”

Alabama Power declined commenting beyond this earlier statement.

Britt’s Republican colleague, Sen. Tommy Tuberville, praised Alabama Power and said the state must “focus on cutting regulations” as it moves toward “energy dominance.”

Britt used the same phrase in her statement but said she plans to work on costs for consumers.

“As we work diligently to roll back regulation and unleash energy dominance, I will continue to be focused on working with local and state partners to drive down energy costs for hardworking families across our state,” she said.

It’s not the first time Britt has made such statements. In November, commenting on a proposed data center in Bessemer, she voiced similar concerns.

“I’ve been told that it’s not going to raise rates and I want to know is that commitment for the long term. I want to make sure that we are making life more affordable for Alabamians,” Britt said. “We have the highest power rates in the Southeast. I think that is unacceptable.”

Britt’s comments then came in response to the rezoning of land for an 18-building hyperscale data center campus, known as Project Marvel, on mostly timber land off Rock Mountain Lake Road in Bessemer.

At that time, Alabama Power said “large-load customers” like data centers will have to cover their own costs.

“This ensures those customers pay the full, fair cost to serve their needs and safeguards other Alabama Power customers from any negative impacts as a result,” the company said.

“‘Full, fair cost to serve’ means large-load customers pay the costs they create – such as dedicated facilities, delivery, and any customer-specific capacity obligations. Those agreements also include terms like minimum-bill provisions and minimum-term lengths that manage risk and maintain parity for all customers.”