Alabama Public Service Commission

Address

100 North Union Street, Suite 850, Montgomery, AL 36104

Phone

(334) 242-5218Fax (334) 242-0509

Website

psc.alabama.gov ↗

Utility landscape

• Alabama Power Company IOU

  Covers approximately two-thirds of Alabama, serving most of the state excluding the Tennessee Valley and portions of northern Alabama

  Subsidiary of Southern Company; operates under a Rate Stabilization and Equalization (RSE) mechanism that allows annual rate adjustments without full rate cases. Has faced scrutiny over environmental compliance costs tied to coal ash remediation and Plant Barry carbon capture investments.

• Tennessee Valley Authority muni

  Northern Alabama, serving through local power companies and directly; federally chartered authority not subject to APSC jurisdiction

  Not regulated by APSC; federal oversight only. However, TVA rate decisions directly affect Alabama municipal distributors such as Huntsville Utilities and Florence Utilities, creating indirect political pressure on state regulators.

• Huntsville Utilities muni

  Huntsville and surrounding Madison County in northern Alabama

  Distributes TVA power; not subject to APSC rate regulation but subject to municipal oversight. Rapid service territory growth driven by semiconductor and aerospace economic development has accelerated infrastructure investment demands.

• PowerSouth Energy Cooperative coop

  Generation and transmission cooperative serving distribution cooperatives across southern Alabama and parts of the Florida Panhandle

  Provides wholesale power to member distribution cooperatives; APSC has limited direct rate jurisdiction over G&T cooperatives. PowerSouth's integrated resource planning and transition away from coal generation is a focus area for member co-ops navigating stranded asset risk.

• Joe Wheeler Electric Membership Corporation coop

  Northern Alabama, primarily Lawrence, Morgan, and surrounding counties in the TVA service area

  Distribution cooperative receiving wholesale power from TVA; subject to APSC jurisdiction for retail service matters. Has pursued broadband expansion under USDA ReConnect and state broadband funding programs to serve rural members.

• Riviera Utilities muni

  Baldwin County and portions of the Gulf Coast area in southwestern Alabama

  One of the few APSC-regulated municipally owned utilities in Alabama providing electric, gas, and water service. Has been active in storm hardening investments following repeated hurricane season impacts along the Gulf Coast.

Key issues

• Alabama Power RSE Mechanism Review: Ongoing legislative and commission-level scrutiny of the Rate Stabilization and Equalization mechanism, with consumer advocates and the Alabama Attorney General's office questioning whether the formula-based annual adjustment process provides sufficient transparency and ratepayer protection compared to traditional full rate cases.
• Coal Ash Remediation Cost Recovery: Alabama Power's multi-site coal combustion residuals (CCR) closure and remediation program — including Plant Gorgas and Plant Barry — is generating significant regulatory cost recovery filings; the APSC must determine how quickly and through which mechanisms to allow ratepayer recovery of EPA-mandated compliance expenditures.
• Integrated Resource Planning and Generation Transition: Southern Company and Alabama Power face pressure to update their IRP to reflect accelerated retirement timelines for aging coal units and increased integration of utility-scale solar and battery storage, with the APSC balancing reliability concerns against carbon reduction trajectory commitments.
• Rural Broadband Deployment Oversight: Alabama electric cooperatives are deploying fiber broadband networks leveraging federal USDA ReConnect, BEAD program allocations, and state broadband grants; the APSC and legislature are examining affiliate transaction rules and whether utility infrastructure subsidization for broadband raises cross-subsidization concerns.
• Distributed Energy Resource and Net Metering Policy: APSC is under pressure to revisit Alabama Power's avoided-cost-based net metering compensation structure, which consumer solar advocates argue remains one of the least favorable in the Southeast, as residential and commercial solar adoption accelerates and interconnection queue backlogs grow.

Upcoming

• 2026-09-15

  Alabama Power annual RSE rate adjustment filing deadline (estimated); Alabama Power typically submits its annual RSE compliance filing in the fall for APSC review and approval of any rate adjustment effective January 1 of the following year.

• 2026-10-07

  APSC open meeting (estimated); Commission holds regular monthly open meetings at which pending utility tariff filings, interconnection disputes, and certificate of convenience and necessity applications are expected to be on the docket, including potential action on pending solar interconnection complaints.

• 2026-11-30

  Coal combustion residuals cost recovery proceeding — anticipated evidentiary hearing (estimated); APSC staff and intervenors including the Alabama Environmental Council are expected to file testimony regarding Alabama Power's proposed recovery of Plant Barry and Plant Gorgas CCR closure costs through existing rate mechanisms.

• 2027-01-01

  Effective date of any approved Alabama Power RSE rate adjustment for calendar year 2027; APSC order on the annual RSE compliance filing is anticipated in November or December 2026, with new rates taking effect at the start of the new year per the established RSE schedule.