Cost Savings Coming in 2025 for Alabama Power Customers

“Actions taken by the Alabama Public Service Commission (APSC) and Alabama Power throughout 2024 will result in a 1.88% reduction in overall retail rates in 2025,” according to a press release from Alabama Power.

With inflation affecting household budgets across Alabama, Alabama Power has made efforts to ease the burden of rising costs on customers' bills by reducing its expenses by over $100 million since 2017.

A drop in overall retail rates is noteworthy, especially given the recent inflationary challenges impacting the U.S. energy sector. “In the past five years, Alabama Power has seen the cost of a transformer increase by 204%, while power poles are up 56% and electrical wires by 134%.”

APSC announced a 2.04% rate reduction in July due to lower fuel costs. In December, the commission revealed another 3.27% decrease for the same purpose.

Alabama Power said that the “APSC is also returning $96 million, or a 1.44% reduction, to Alabama Power retail customers in 2025 based on a legal judgment awarded to the company in 2024. These funds will be distributed as bill credits to customers from January to March 2025. The U.S. Court of Federal Claims awarded Alabama Power damages resulting from the federal government’s failure to meet its obligations for the handling of spent nuclear fuel.”

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A 4.87% adjustment under the Rate Stabilization and Equalization plan was implemented to address the increased cost of electricity caused by inflation and to support Alabama Power's ongoing investments in power generation and grid resilience.