Our Plan to Reduce Alabama Power Bills
A clear path to reduce Alabama Power bills by nearly $5 billion over the next decade
44 YEARS WITHOUT ACCOUNTABILITY
Time since Alabama Power's last rate case review
UTILITY AFFORDABILITY PLATFORM
Energy Alabama’s Utility Affordability Plan outlines six practical policies that can be enacted now to reduce what Alabama Power customers pay on their monthly bills. Together, these solutions could save customers nearly $4.8 billion on Alabama Power bills over the next decade.
End sweetheart deals. Require real oversight before more rate hikes.
- Reduce Alabama Power’s guaranteed profit (Weighted Retail Return on Common Equity) to a fairer level commonly used in other states.
- Require a full, transparent rate case so regulators and the public can examine all costs before approving new charges.
Customer impact:
- Saves up to $400 million per year, translating to about $22 per month / $267 per year for a household using about 1,000 kilowatt hours per month.
- Together, these reforms could reduce electricity costs by up to 30% over time.
Customers should not fund corporate politics.
- Prohibit utilities from charging customers for their lobbyists, political consultants, public relations firms, campaign donations, or political advertising.
- Shareholders, not ratepayers, should cover political activity.
Customer impact:
- Immediate bill relief by removing non-essential, non-service costs from rates.
No free rides for data centers and large loads.
- Require new large data centers and industrial loads to fully cover the cost of the infrastructure built to serve them.
- Prevents those costs from being shifted onto residential and small business customers.
Customer impact:
- Stops future rate increases driven by data center infrastructure expansion.
- Directs new large loads to invest in solutions which immediately reduce electric bills.
Use state-backed financing instead of Wall Street debt.
- Deploy the state’s Energy Bank to finance energy infrastructure at lower interest rates.
- Same poles and wires, but less profit and interest built into customer bills.
Customer impact:
- Could save up to $280 million total.
- Approximately $14 million per year for Alabama Power customers statewide.
Don’t punish self-reliance and competition.
- Eliminate special fees or taxes on customers who produce their own electricity.
- Promotes competition, innovation, and free market principles instead of monopoly protection.
Customer impact:
- Creates downward pressure on rates by forcing utilities to compete for customers’ business
- Allows customers to build their own cheaper electric generation.
Put existing money to work lowering bills now.
- Deploy $150 million in unused federal energy-efficiency funds sitting idle in
Montgomery. - Reduces monthly bills permanently by lowering household energy use.
Customer impact:
- Estimated $500 million in total energy savings for Alabamians.
- About $50 million per year in reduced energy costs statewide.
Alabama Power Bill Breakdown
Calculate how Alabama Power uses the money it collects from your monthly bill. See the breakdown of profits, taxes, infrastructure costs, and operations in an easy-to-understand visual format.
Read the full Press Release
As Alabama lawmakers convene for the 2026 legislative session, Energy Alabama has released a Utility Affordability Platform outlining six policies that can be enacted now to directly reduce what Alabama Power customers pay on their monthly electric bills.
$7.8 Billion
In Profit Charged to Customers Since 2020
* Accurate as of the most recent quarterly earnings release
* Accurate as of the most recent quarterly earnings release
While Alabama families struggle with rising costs, Alabama Power has extracted billions in guaranteed profits – with no accountability and no competitive oversight.