Alabama regulators deny public access to fuel cost proceedings

MONTGOMERY, Ala.—Yesterday the Alabama Public Service Commission denied a second attempt by Energy Alabama to intervene in Alabama Power’s Rate Energy Cost Recovery (ECR), or fuel cost, proceedings. 

The Southern Environmental Law Center, on behalf of Energy Alabama, petitioned the Public Service Commission to reconsider its denial of Energy Alabama’s petition to intervene in Alabama Power’s fuel cost proceedings. According to the rules governing Rate ECR, the public is entitled to hear evidence and participate in any proceedings adjusting fuel costs to ensure these changes are “just and reasonable.”  

The Public Service Commission has not held a public fuel cost hearing in 16 years, but the rate has been adjusted at least 18 times with no opportunity for the public to comment or review the data. The rules are clear: to make any changes to fuel cost–upward or downward–Alabama Power must submit estimates to the commission and the commission must hold a public hearing and allow intervention. There have been only two public fuel cost hearings since the rules requiring them were adopted in 1981. 

“The Alabama Public Service Commission has been changing Alabama Power’s fuel prices for years all while denying the public any say whatsoever,” said Daniel Tait, executive director of Energy Alabama. “Alabama Power shouldn’t be the only one at the table.” 

Energy Alabama previously requested to intervene on May 3, 2024, but the commission denied its request, claiming there is no pending proceeding despite regular activity in the docket. Today’s denial was on the petition asking the PSC to reconsider the original denial. 

“We are asking for the commission and Alabama Power to follow the processes outlined in the rules of the rate,” said Christina Tidwell, a senior attorney in SELC’s Alabama office. “Alabama Power customers and interested parties should be able to participate in the process.” 

Alabama’s ECR proceeding rules are based on Georgia’s Public Service Commission that regulates Alabama Power’s sister company, Georgia Power. The Georgia PSC has held at least 26 formal fuel cost proceedings. 

The cost of fuel, like coal and methane gas, is passed down to customers. Fossil fuel costs are prone to price volatility. For example, in 2022, Alabama Power’s average residential customer’s monthly bill rose over $18 a month because of sky rocketing gas prices.  Unlike fossil fuels, renewable energy resources like solar and battery storage have no fuel costs.