(WDNews) — Alabama Power customers can expect some relief in 2025 as overall retail rates are set to decrease by 1.88%, thanks to actions taken by the Alabama Public Service Commission (APSC) and the company throughout 2024.
The reduction comes as Alabamians grapple with inflation’s impact on household expenses. Alabama Power has trimmed its costs by over $100 million since 2017, helping offset inflationary pressures within the energy industry.
Recent APSC announcements include a 3.27% rate cut this month and a 2.04% reduction in July, both tied to declining fuel costs. Additionally, $96 million from a legal judgment will be returned to customers as bill credits from January to March 2025, contributing a 1.44% reduction.
While electricity prices nationwide have surged by 29.4% since January 2021, Alabama Power is maintaining a flat Rate CNP-C in 2025 to reduce compliance cost impacts. The company is also addressing inflation-related challenges, with the cost of transformers, power poles, and wires rising sharply in recent years.
This rate adjustment comes as part of Alabama Power’s long-term commitment to grid resilience and customer affordability.
