Fuel costs decided behind closed doors. We are taking the fight to the Alabama Supreme Court

When the Public Service Commission (PSC) decides how much Alabama Power can charge you for fuel, you do not get a say.

We think that is wrong. And we are not done fighting it.

What happened in court

Last year, we asked to intervene in Alabama Power’s fuel cost docket (known as Rate ECR) at the PSC. These fuel costs are passed directly to customers through their electricity bills. Decisions made in this docket  set how much the utility can pass on to customers for the fuel it uses to generate electricity. That total often reaches hundreds of millions of dollars each year.

Because these costs are passed directly to customers, we believe the public deserves a seat at the table and should have the opportunity to present evidence, ask questions, and speak up for regular people.The PSC said no, stating that it is not legally required to hear from the public before changing the amount customers must pay for fuel costs.

When we challenged that decision in Montgomery County Circuit Court, the judge sided with the PSC and Alabama Power. The court ruled that the PSC can continue to decide fuel costs behind closed doors without public participation.

Why we are appealing

We believe decisions that affect customers should be made in the open. Not in secret. Fuel costs have a major impact on your monthly bill, and they are changed with virtually no transparency or public scrutiny.

That is why we have filed an appeal with the Alabama Supreme Court. We are asking the Court to recognize that customers have the right to participate directly and be heard when decisions about their energy costs are being made.

Our advocacy is about more than fuel costs

This is not just about fuel costs. Without public participation and transparency, energy decisions will continue to be shaped and made entirely by monopoly utilities and their regulators.

Alabama families and businesses already pay some of the highest electricity bills in the nation. Keeping the process closed to public participation makes it harder to hold utilities accountable and push for more affordable, cleaner energy.

We are not stopping

We have been clear from the start. The people of Alabama deserve transparency, fairness, and a real voice in how their electricity rates are set.

Taking this fight to the Alabama Supreme Court is our next step. And we will keep pushing until decisions that affect more than a million of customers are made in the sunlight.

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What’s at Stake

What are fuel costs?
Fuel costs are what Alabama Power spends to buy the coal, gas, and other fuels it uses to generate electricity. These costs are passed directly to customers on your bill through a separate line item called the “Energy Cost Recovery” (ECR) charge.

Why do they matter?
Fuel costs can total hundreds of millions of dollars each year. They have a big impact on how much you pay each month. And because they are passed straight to customers, the utility has no financial incentive to control them.

How are they decided now?
The Alabama Public Service Commission has not held a public fuel cost hearing in 16 years, but the rate has been adjusted at least 19 times with no opportunity for the public to comment or review the data. .  That means that the amount customers pay for fuel costs is changed with no testimony from billpayers, no cross-examination or scrutiny of the utility’s claims, and no independent review on behalf of customers.

Why we are fighting this
When the public is shut out, decisions happen behind closed doors. . That makes it easier for utilities to pass on higher costs without being challenged. We believe customers should have a voice in how these charges are set, and that transparency is the first step to accountability.

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