Alabama Power customers to receive bill credit this month following PSC decision

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October 1, 2020

Alabama Power Company customers will each receive a bill credit this month for their September statements.

The credit on October bills is a result of lower-than-expected fuel costs due to the COVID-19 pandemic. While fuel expense adjustments are typically calculated at the end of each calendar year, the company wanted to return money to customers ahead of schedule as Alabamians still deal with the economic challenges caused by the pandemic.

After Alabama Power’s request, the Alabama Public Service Commission in August approved returning $100 million to customers in the form of bill credits.

“Returning $100 million to customers of Alabama Power is the right thing to do at just the right time. The coronavirus pandemic has had such a significant impact on Alabama families and small businesses. Putting money back into the pockets of hard-working Alabamians is one of the ways we can help on the road to recovery,” said PSC President Twinkle Andress Cavanaugh. “Recovery is going to take place at the state and local level, so I’m proud of our commission for stepping up and making sure $100 million will go back into households and into our economy to help us get back on track.”

The typical Alabama Power residential customer will get a $25 credit on their October bill. The exact amount is dependent on usage over the 12-month period ending June 30, so credits will vary accordingly. Of course, customers who use more energy will receive larger credits.

“We know some customers are having a tough time. We hope this helps,” stated Richard Hutto, Alabama Power vice president for Regulatory Affairs.

This credit comes on top of the 3% rate reduction all Alabama Power customers received this year, beginning in January. That reduction alone is expected to save the typical residential customer $54 over 12 months.

In total, customers are expected to receive approximately $300 million in benefits through December 31.

It should be noted that Alabama Power’s total retail price is below the national average — and has been for decades. Customers actually pay less for electricity today than 30 years ago when adjusting for inflation.