Alabama Power has officially informed the Alabama Public Service Commission of its intention to maintain customers’ electricity rates at current levels for the next two years, outlining a plan that aims to preserve rate stability through 2027, reports Baltimore Chronicle. The informational submission, dated November 21, 2025, includes specific commitments the company is willing to uphold if the Commission approves certain cost-management measures.
The filing states that Alabama Power has collaborated with PSC staff and the Attorney General’s Office to analyze projected costs for the 2026 and 2027 cost years. The company emphasizes that maintaining the existing compliance factors under Rate CNP for 2026 would prevent further pressure on bills and support the overall goal of stable electricity rates.
Under the proposal, Alabama Power plans to keep the current Rate CNP, Part C, factors through the end of 2027, while postponing the implementation of Rate CNP, Part A, adjustments until January 2028. Part C encompasses costs associated with compliance with environmental regulations and other governmental requirements, including emissions control and federally mandated upgrades, meaning customers would not see additional charges linked to these compliance costs. Part A represents expenses for newly built or acquired power plants approved by the PSC, which will not be added to bills until 2028.
Additionally, the filing proposes retaining the Rate CNP, Part B, factor until March 2028 and continuing the interim Environmental Cost Recovery factor through 2027. To support these commitments, Alabama Power intends to utilize internal cost containment strategies but also seeks authorization from the Commission to apply any customer refunds from the 2025 Rate RSE calculation to the Natural Disaster Reserve, currently showing a negative balance, and to use federal nuclear production tax credits from 2025 through 2027 to offset retail service costs.
In a statement, Alabama Power explained that the informational filing is part of ongoing discussions with the Commission to help customers manage electricity expenses. The company acknowledged that budgets are tight and that many families and businesses face significant power costs. Alabama Power stressed that the filing aims to provide greater predictability and certainty for electric rates during a period of rising expenses. The company also noted that factors such as weather, fuel prices, and natural disasters could influence these commitments, and it will work with the Commission to adjust as necessary. The Alabama Public Service Commission will now review the submission and determine the appropriate next steps.
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