By Mike Cason | mcason@al.comal.com
August 13, 2013
MONTGOMERY, Alabama — The Alabama Public Service Commission today voted to lower the allowed rate of return for Alabama Power Company, according to Commission President Twinkle Andress Cavanaugh.
The change will save customers an estimated $30 to $110 a year, according to a news release from the commissioner.
The change follows a series of public hearings about Alabama Power and the rates.
The commission voted 2-1 to approve the change, with Commissioners Cavanaugh and Jeremy Oden voting in favor and Commissioner Terry Dunn voting against.
In a news release, Dunn said the change will allow Alabama Power’s profits to go higher.
“The public can be told it results in a small decrease in allowed return on equity today. … The problem is what it allows to happen tomorrow — and for years to come,” Dunn said in the news release.
Oden issued a news release in support of the change, saying it was “a victory for Alabama families.”
“By adopting the PSC staff’s recommendation, we have lowered Alabama Power’s potential revenues by up to $65 million per year and ensured that electric rates will remain stable for both 2013 and 2014.”