FOR IMMEDIATE RELEASE
September 1, 2026
MONTGOMERY, Ala.
The Alabama Public Service Commission voted today to cut the allowed return on equity – a key financial metric that determines the amount of a utility’s profits – that Spire Alabama and Spire Gulf can collect from their customers. Spire asked regulators for an increase. It got a decrease instead.
“Energy Alabama thanks the Commission for opening this first-of-its-kind rate investigation and for its decision to bring Spire’s return on equity down to a more reasonable level,” said Sheree Martin, Deputy Director and General Counsel of Energy Alabama.
The Commission lowered Spire Alabama’s allowed return on equity (ROE), adjusting point from 9.7 percent to 9.4 percent. Spire Gulf’s dropped from 9.95 percent to 9.6 percent. Spire had asked to go the other way, up to 10.5 percent for Spire Alabama and 10.75 percent for Spire Gulf, with a ceiling as high as 11.25 percent, locked in for five years. Today’s vote holds the lower profit range at two years for Spire Alabama and three years for Spire Gulf.
Using the Attorney General’s estimates, Energy Alabama expects Spire customers will save more than $15 million a year compared to what Spire asked the Commission for.
| Spire Alabama | Spire Gulf | Combined | |
|---|---|---|---|
| Return on equity (ROE) today | 9.7%range 9.5% to 9.9% | 9.95%range 9.7% to 10.3% | |
| ROE Spire asked for | 10.5%range 10.3% to 11.0% | 10.75%range 10.55% to 11.25% | |
| ROE the Commission approved | 9.4%range 9.2% to 9.6% | 9.6%range 9.3% to 9.9% | |
| Savings against Spire’s request | $13.0 million | $2.6 million | $15.6 million a year |
| Savings against today’s rates | $3.5 million | $0.8 million | $4.3 million a year |
Savings are calculated from the adjusting point, the return on equity a utility is targeted to earn, rather than from the top of the range.
“Spire came in seeking a higher return on equity, but got a reduction instead,” Martin said. “Energy Alabama asked for a bigger reduction than the PSC approved, but the final result is still a big win for consumers. We are committed to continuing to push for clean and more affordable energy for all Alabamians.”
What happens next
Spire Alabama’s return on equity will come back up for review in two years and in three years for Spire Gulf. Energy Alabama will continue to fight for more reasonable profits. We are also calling on the Commission to open a formal review of Alabama Power’s rates, the first item on our five-point affordability agenda.
About Energy Alabama
Energy Alabama is a 501(c)(3), member-supported, non-profit organization dedicated to advancing Alabama’s clean and affordable energy future. Through education and advocacy, we empower Alabamians of all ages to embrace clean energy solutions. We champion policies that promote clean energy adoption, cultivate a skilled workforce ready to deploy these technologies, and believe in a future where clean energy is accessible to all.
