Alabama lawmakers are debating two bills that propose significant reforms to the Alabama Public Service Commission (APSC). One bill aims to reduce costs for Alabama Power ratepayers by capping profits and requiring rate cases, while the other focuses on transforming the APSC's governance by expanding its membership and creating a Secretary of Energy position. Both bills include provisions to prohibit passing certain costs to ratepayers.
) - Lawmakers will consider two different bills in committee hearings Wednesday that propose sweeping changes to the Alabama Public Service Commission , but the impacts and proposed outcomes of the bills are different.
Caps Alabama Power’s profits by limiting ROE to regional average.that proposes cost-saving measures for Alabama Power ratepayers. HB475 would force the APSC to regulate Alabama Power through rate cases, which hasn’t happened in more than 40 years.It would also cap Alabama Power’s profits by prohibiting the company’s return on equity from going above the regional average. HB475 passed out of committee 14-1. Rep. Napoleon Bracy , Mobile County, voted against the measure.Expands APSC from three members to seven.Creates a Sec. of Energy to run APSC, who would be appointed by governor.New commission fully phased in by 2030 election., named the ‘Power to the People Act.’ It would transform the governance of the APSC but stops short of proposing immediate or long term cost saving measures.The bill creates a new, non-elected leader of the APSC called the Secretary of Energy, a cabinet-level position appointed by the governor. This position would set the agendas for the APSC and run the agency. It would also expand the APSC from three at-large members to seven who would be elected by regional districts. The new members would be initially appointed by the governor as early as this July and serve various term lengths. Elected members would befor the new positions. The legislation would also freeze electricity base rates through 2029. Both bills prohibit passing along costs to ratepayers for lobbying, some advertising expenses and charitable giving, all of which are already in place. Sen. Clyde Chambliss , District 30, the primary bill sponsor, told lawmakers during Wednesday’s committing meeting Alabama’s energy rates have gone up over the last 20 years.“We are getting close to those states that are typically high energy states, we are headed in the wrong direction,” Chambliss said of Alabama’s electricity rates. “This increase in rates has cost the citizens of hundreds of millions maybe billions of dollars over the last twenty years or so.” Chambliss says it’s named ‘Power to the People Act’ because the increased number of commission members connected to geographic locations.During the public hearing, opponents said they wanted economic relief and accountability. “A rate freeze at the time people are taking out credit cards to pay their power bills...a rate freeze isn’t power to the people."Butler says he stands by his bill because it would lower power bills and doesn’t grow government. But, he’s open to working with the Senate and its legislation under the right conditions. “Hopefully we can work together as the sausage is being made and come up with something that benefits the people back home,” Butler said after the committee hearing. “We’re supposed to be doing their will, not special interests’ - that’s always what concerns me is the influence of special interests in Montgomery is so powerful.” Energy Alabama, a clean energy nonprofit who’s been vocal during this session about lowering energy costs applauded the committee for moving Butler’s bill. “At a time when other proposals, including the so-called ‘Power to the People Act,’ fail to address the real reasons Alabama families are facing high power bills, HB475 begins tackling the core issue: stronger oversight of utility rates,“ stated Daniel Tait, executive director for Energy Alabama. ”While more work remains to ensure electricity in Alabama is fair and affordable, HB 475 represents meaningful progress for Alabama consumers."
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