Recently Alabama Power filed a plan to keep customers’ electric rates steady for the next two years. The company says this will give households and businesses predictability at a time when many other costs are rising. But some watchdog groups and local reporters say the move is as much about politics and public relations as it is about actual relief for people who pay the bills. Below I explain what the proposal says, what critics worry about, and what it could mean for everyday customers — in simple language. (WBMA)
What did Alabama Power file?
Alabama Power made an informational filing with the Alabama Public Service Commission (PSC) that outlines how it would hold current rate “factors” steady through 2027. The filing says the company would delay certain cost adjustments — including some tied to a recent acquisition — and keep fuel cost factors and other formula elements at today’s levels if the PSC approves related cost-management measures. The company framed the filing as a way to help customers manage bills and provide “certainty and predictability.” (WBMA)
Why customers might feel hopeful — and why that hope is cautious
On the surface, a two-year freeze sounds like good news. If rates don’t go up, monthly bills won’t jump because of a base-rate increase. That helps families who are budgeting tightly. Alabama Power’s leaders explicitly pointed to household budgets as a reason for the move. (WBMA)
But there’s an important caveat: utilities often use different accounting tools and separate rate mechanisms. A freeze of certain rate factors doesn’t always stop all possible bill increases. Costs such as fuel price adjustments, storm recovery charges, or certain special surcharges can still change depending on rules and filings. In short, a “freeze” can be limited in scope — helpful, but not an absolute guarantee against higher bills. (Alabama Political Reporter)
Why some nonprofits and watchdogs say “this is politics”
Several nonprofits and local reporters see motives beyond simple consumer relief. Critics point out that Alabama Power has had strong political influence in the state for years. They note that the utility is a big company with deep ties to local leaders and that regulatory oversight in Alabama has been less public and less contested than in many other states. That history makes some people view the rate-freeze announcement as a strategic PR move — a way to shape public opinion before formal PSC actions or legislative debates. (Inside Climate News)
A recent court ruling also highlighted concerns around transparency. A judge allowed the Alabama PSC to continue holding certain meetings behind closed doors, which critics say reduces public oversight of rate decisions. When regulatory processes are less visible, major announcements from utilities can look like they’re meant to influence politics and public sentiment rather than to deliver straightforward customer relief. (AP News)
Financial context: profits, refunds, and past rate moves
Alabama Power is part of a large utility family and has shown strong profits in recent years. That has fed criticism that the company could lower rates more significantly instead of promising a temporary freeze. At the same time, the company has in the past issued refunds when regulators found its earnings exceeded allowed ranges — a mechanism that does provide some check on profits. Still, critics argue that refunds after the fact are not the same as keeping bills low now. (AP News)
Who wins and who loses under a limited freeze?
Winners:
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Households and small businesses that rely on predictability may get short-term relief from surprise base-rate increases.
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Politicians and PR teams who want to show action on rising living costs can point to the filing.
Losers or those at risk:
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Customers who need long-term structural changes (energy efficiency programs, grid investments, support for low-income customers) might not see those benefits if cost planning is pushed off.
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If internal costs get deferred rather than reduced, customers may face bigger adjustments after the freeze ends.
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Advocates for transparency worry that limited freezes can be used to avoid public debate about how rates are set and who pays for grid upgrades. (Alabama Political Reporter)
Important technical points to watch
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Which rate “parts” are frozen? Utilities sometimes break bills into parts (for example, base delivery, fuel, environmental riders). A freeze may cover only specific parts. Know which parts Alabama Power’s filing explicitly covers. (WBMA)
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What cost-management measures does the PSC need to authorize? The company’s filing conditions the freeze on the Commission approving measures that offset or reallocate costs. Those measures will be central to whether the freeze actually protects customers. (Alabama Political Reporter)
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Will deferred costs be charged later? If costs are merely postponed, customers could face rate pressure after the freeze ends. Look for language about delaying adjustments versus permanently reducing costs. (CrispNG)
How you can follow this issue
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The Alabama Public Service Commission posts meeting agendas and minutes. The PSC’s public meetings (and any hearings) are where rules and approval happen. Tune into those meetings or read their minutes. (psc.alabama.gov)
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Watch reputable local outlets (the filing and related statements have been reported widely by local news sites). They often summarize the filing and give quotes from company and critic statements. (WBMA)
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Look for watchdog reports from energy-policy reporters and nonprofits. They dig into whether freezes are substantive or mostly symbolic. (Inside Climate News)
Plain advice for customers
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Don’t assume zero risk of higher bills. A headline that says “rates frozen” helps, but read the details.
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Track your own usage. Often the easiest way to manage bills is to reduce consumption where possible: check insulation, smart thermostats, and efficient lighting. Alabama Power’s website also offers account tools and programs. (alabamapower.com)
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Engage with the process. If you’re concerned, attend or watch PSC meetings, send comments, or contact local consumer advocates. Public input can matter, especially when regulatory rules are being discussed.
Bottom line
Alabama Power’s two-year rate freeze could offer helpful breathing room for some customers. But the move is not a simple, permanent drop in costs. It’s a conditional plan — tied to regulatory approvals and accounting choices — that also plays in a broader political and regulatory context. That is why some nonprofits and reporters call it “politics, not people.” Watch the PSC process closely and read the filing’s details to see whether the freeze truly protects customers now — or mainly postpones costs and shapes public opinion.