While it is hot as blazes this summer, many Alabamians are grappling with expensive power bills. Despite attempts to conserve energy, electric rates and bills continue to rise, leaving families with unmanageable costs.
Take a look at the sharp contrast between the financial struggles of Alabama’s citizens and the soaring profits of utility executives. In 2023, investor-owned electric and gas utilities paid their CEOs more than $647 million, a 9% increase from the previous year, according to the Energy and Policy Institute. Last year, Southern Company, the parent company of Alabama Power, paid former CEO Tom Fanning a staggering $33 million, and current CEO Chris Womack $23 million. These figures stand in sharp contrast to the financial reality of countless Alabama residents who struggle to keep their lights on.
Alabama has the fourth-highest residential energy consumption and the third-highest energy bills in the nation. Despite this, Alabama Power ranks 51st out of 53 U.S. utilities in energy efficiency. This means that while Alabamians are using more energy and paying more for it, Alabama Power is doing little to help them reduce their consumption and lower their bills.
Alabama Power is part of a broader trend among utilities, where executives receive ever increasing compensation while disconnecting customers unable to pay their rising bills. Georgia Power and Atlanta Gas Light, sister companies to Alabama Power, disconnected nearly 271,000 residential customers in 2023 alone, which is the highest number among all utility companies. This trend is not isolated; utilities nationwide are increasingly shutting off power to struggling households. In the first ten months of 2022, utilities disconnected the electricity of more than 1.5 million households, marking a 29% increase from the previous year. Essentially, utility companies are laughing all the way to the bank while targeting poor people with disconnection.
The executives of Alabama Power’s parent company not only receive exorbitant compensation but also enjoy lavish perks. Former Southern Company CEO Tom Fanning and current CEO Chris Womack have access to company aircraft for personal use, tickets to entertainment events, and funded spousal expenses for business travel. These benefits are ultimately paid for by people like you and me, who are often left to choose between paying our electric bill and other essential needs like food and healthcare.
The result is clear: while Alabama Power executives live in luxury, Alabamians are left to bear the brunt of soaring electric bills. In an apparent attempt to hide the ball, Alabama Power recently recommended setting thermostats twenty degrees below outside temperatures. Alabama Power seems to care more about protecting its executives’ salaries than helping you stay comfortable in your home.
Alabamians deserve fair utility rates and transparency from their electric utility. It’s time for Alabama Power to prioritize the needs of its customers over the profits of its executives. As temperatures rise, so does the urgency for a solution that ensures no family has to choose between staying cool and staying secure.
