The Alabama Public Service Commission has asked Alabama Power to stop billing customers for its advertising costs immediately, ahead of a state law that will bar the practice starting in 2029. The request is voluntary and applies to costs included in retail rate-setting.
Alabama Power, the state’s largest electricity provider, serves about two-thirds of Alabama. The company is currently allowed to pass on half of its non-public-safety advertising expenses to customers. Its advertising includes recent television commercials promoting a rate freeze announced late last year amid criticism of rising electricity prices.
At Tuesday’s meeting, commission President Cynthia Lee Almond proposed asking the utility to exclude all advertising expenses from rates until the new law takes effect. She said there was no reason to wait until January 1, 2029, to begin the process. Commissioners Jeremy Oden and Chris Beeker IV supported the motion.
If Alabama Power agrees, the interim change would be reflected in its Rate Stabilization and Equalization filings for 2027 and 2028. The commission’s request was not listed on the meeting agenda.
Company filings with the Federal Energy Regulatory Commission show Alabama Power spent more than $6 million on general advertising last year, or roughly $4 per customer. The filing does not specify how much of that spending was passed on to customers or how much would be affected by the new prohibition. Alabama Power did not immediately respond to a request for comment.
Daniel Tait, executive director of Energy Alabama, welcomed the commission’s action, saying customers had faced some of the country’s highest electricity bills in recent years. He said the change would establish strong customer protections against paying for the utility’s advertising.
The request comes as the commission prepares for a major restructuring. In January, it will expand from three members to seven, with four newly appointed commissioners joining. Oden and Beeker are also due to leave in January after losing Republican primary races. Almond will be the only remaining member of the current commission.
Sources: Inside Climate News.