Who Regulates Energy and Utilities in Alabama?

Understanding who makes decisions about electricity, water, and the environment can help communities know where to raise their voices. Here are the three main agencies that play a role in Alabama:

Alabama Public Service Commission (PSC)

• Regulates private utilities like Alabama Power (electricity) and Spire (natural gas).
• Decides on electric rates, fees, and service rules for private utilities.
• Commissioners are elected statewide, and their decisions directly affect household bills.

Alabama Department of Environmental Management (ADEM)

• Enforces state and federal environmental laws in Alabama.
• Oversees air and water quality, pollution permits, and waste management.
• Plays a role when utilities impact the environment—for example, managing coal ash storage and air and water discharges from power plants.

Federal Energy Regulatory Commission (FERC)

• An independent federal agency that regulates the interstate flow of electricity, natural gas, and oil.
• Oversees the “bulk transmission” system, which is the high voltage system responsible for sending power over long distances, and wholesale energy markets.
• While less visible to everyday consumers, FERC’s decisions have economic and environmental impacts in Alabama. The agency licenses and monitors hydropower dams on Alabama’s rivers and regulates interstate natural gas pipelines.

In short:

• PSC = Your bills and utility rules (state level)
• ADEM = Protecting air, water, and land (state level)
• FERC = Big-picture grid and energy markets (federal level)