Frequently Asked Questions

The Alabama Public Service Commission—also known as the Alabama PSC or simply the PSC—is probably the state agency that you know the least about. But the PSC is one of the most powerful entities in the entire state. Click here to learn more.

Utilities’ profits are usually approved by state regulators. Most of their money is made by spending on capital investments. They recover their costs for things like fuel, labor, and infrastructure and then earn a regulated return on investments in things like power plants, poles, and wires.

In Alabama, state regulators (the PSC) use a unique system called Rate Stabilization & Equalization (RSE) that sets a profit range. This is typically equivalent to a Return on Equity (ROE) of 11–13%, which allows the company to adjust customer rates with little oversight to meet that target without filing full rate cases leading to some of the highest utility bills - and profits - in the country.

There is no single right answer to this question. The best energy sources are those that are affordable, equitable, and sustainable.

Sustainable energy is energy that meets the needs of the present generations without compromising the ability of future generations to meet their own needs. Sustainable energy is about finding clean, renewable sources of energy—sources that renew themselves, rather than sources that can be depleted.

Clean energy can be reliable even when the sun isn’t shining or the wind isn’t blowing, thanks to energy storage, diverse power sources, and smart grid technology. By combining clean energy sources, like solar, wind, hydropower, geothermal, and battery systems, modern grids can maintain consistent and stable electricity supply in any weather conditions.

With more than 200 sunny days each year, Alabama has the potential to have over 50,000 megawatts of solar, which is enough to power millions of homes. In 2024, only 283 megawatts of solar were installed across the state, providing less than 1% of our state’s electricity needs.

Alabama Power charges a high monthly “standby” fee of $5.41 per kW to customers generating their own electricity with rooftop solar. This amounts to about $27 per month for a typical 5 kW rooftop solar system or $9,000 over the typical 30-year lifespan of a residential solar installation, which significantly reduces the financial benefits of investing in solar.

Alabama Power charges a fee for customers producing their own energy via solar at both residential and commercial scales. Homeowners utilizing rooftop solar are subjected to a fee amounting to about $27 a month for an average-sized installation. Commercial customers with large scale solar installations are charged a $0.00193 per kWh fee, which may not sound like much, but for one solar farm in Montgomery County, this amounts to about $250,000 annually.

Solar panels produce far more energy over their lifetime than it takes to make them. It takes about 1 to 4 years’ worth of energy to manufacture a typical solar panel. However, solar panels last 25-30 years, meaning they generate 6 to 30 times the energy used to make them.

Solar panels are completely silent, with no moving parts. Modern wind turbines do make some sound, but it’s usually described as a soft whooshing or humming, similar to wind through trees—and it drops off quickly with distance. Most turbines are built far enough from homes that the sound is barely noticeable or quieter than everyday background noise like traffic or rain.

Purchasing RECs does not change the source of your household’s electricity. The physical electricity you use at home still comes from the regular power grid. If you choose to buy RECs, you may be supporting clean energy development in your utility’s service area.

Your high bills are due to a combination of aggressive rate structures (base, fuel, tax, reserve fees), lack of competition and regulation, and high electricity usage driven by Alabama’s climate.

They are different means to the same end - to reduce energy use. Energy conservation means using less energy by reducing or avoiding unnecessary use, such as turning off lights when not needed. Energy efficiency means using technology that requires less energy to perform the same task - like swapping incandescent bulbs for LEDs.

To save money on your electric bill, reduce energy use by setting your thermostat efficiently, using LED lighting, and turning off or unplugging unused electronics. Investing in better insulation, energy-efficient appliances, and smart thermostats can significantly cut long-term costs. You can also explore budget billing programs, energy audits, or rebates offered by your local utility or cooperative to manage usage and expenses.

An energy audit is an assessment of a home or building’s energy use. It is the first step in understanding how much energy your home consumes and what steps you can take to reduce that usage. If you are looking for ways to save on your electric bill, you should complete an energy audit. You can do it yourself, or you can hire a professional. Find an energy auditor near you. You may also consider contacting your utility company for resources and recommendations on home energy audits.

A public electric utility is owned by a government entity or cooperative and operates as a nonprofit, aiming to provide affordable, reliable service to the community. A private electric utility is owned by investors or shareholders, operates for profit, and is regulated by government agencies, such as the Alabama Public Service Commission.

An electric cooperative (or electric co-op) is a nonprofit, member-owned utility that provides electricity to its members, typically in rural or underserved areas.

Energy production - especially from burning fossil fuels like coal, oil, and natural gas - releases harmful emissions and particulate matter into the air. These pollutants can lead to smog, acid rain, and respiratory problems. Cleaner energy sources like wind, solar, and hydro produce little to no air pollution, helping improve overall air quality.

Air pollution is the single greatest environmental risk for premature death in the world, contributing to over 5 million deaths every year. Exposure to pollution can trigger numerous health problems including chest pain, coughing, throat irritation, and congestion. Certain pollutants have been linked to increased risk of lung disease, heart disease, cancers, and neurodegenerative diseases.

The greenhouse gas emissions, including manufacturing, associated with an electric vehicle (EV) over its lifetime are typically lower than those from an average gasoline-powered vehicle. Even when electricity comes from fossil fuel sources, EVs are cleaner than gas-powered cars  because they are more energy-efficient and produce no tailpipe emissions. However, their environmental benefit is much greater when the electricity comes from cleaner sources.

The United States lacks standards for handling batteries after their use in electric vehicles. There are logistical and financial costs related to this, including battery pack transportation and disassembly, as well as perceived health and safety concerns. Addressing issues is essential for the scarce mineral resources contained in batteries to be used to their fullest potential.

Energy freedom means having the power to choose where your energy comes from, how it's produced, and how it's used—whether you're an individual trying to cut costs on your electric bill or a nation aiming to reduce dependence on imports.

This is a hot button issue in today’s political landscape. Simply put, energy independence refers to a country’s ability to meet its energy needs without requiring imports from another country. To achieve affordable energy independence, the U.S. should focus on expanding its sustainable energy resources.

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