PSC: Alabama Power, Alagasco rates decreasing - blasts Obama policies for rates not being lower
By Jeremy Gray | jgray@al.com AL.com
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/storypackage /#article_inset The Alabama Public Service Commission today unanimously approved reductions in electricity rates, the PSC announced in a press release.
"The Commission approved a measure that will reduce by $120 million the amount Alabama Power ratepayers will pay over the next year. These reductions are based upon the lower costs associated with producing electricity, which have been decreased due to the lower prices of natural gas and coal and hydro generation," the release stated.
The Alabama Power rate reduction takes effect Jan. 1, 2016 and equates to a 2 percent reduction in the total retail price customers will pay for the year, the utility service announced.
The PSC "also secured a sizable reduction for Alagasco ratepayers resulting in a $22.9 million reduction of rates. This reduction is the result of Alagasco's increased operating efficiencies and lower natural gas prices," the release stated.
The decreases came in spite of "President Obama's administration and his radical environmentalist cronies," the release stated.
Alabama PSC bashes Obama while approving solar projects
The three Republican PSC commissioners blasted President Obama's environmental initiatives after approving two solar projects for Alabama Power.
"While rates are going up in other states because of the Federal mandates handed down by the Obama Administration, our Commission has found a way to reduce rates for Alabama Power and Alabama Gas customers," PSC President Twinkle Andress Cavanaugh said.
"We will continue to fight Obama and his out of control, job killing EPA. We will continue to use every measure available to fight Obama and keep rates as low as possible for Alabama families and businesses."
However, former Public Service Commissioner Terry Dunn, who is running against Cavanaugh in the March 1 Republican primary, said the 2 percent reduction does little for ratepayers because Alabama Power's rates rose 5 percent starting this year.
"They are still getting a 3 percent leeway," Dunn said of Alabama Power today. "You hope the ratepayers won't let themselves be deceived."
Other commissioners say the reduction will benefit ratepayers.
"Today I was proud to participate in a vote that will help reduce the burden placed on rate-payers. Alabama Power customers continue to be asked to bear the yoke of increased environmental costs placed upon them by the EPA," Commissioner Jeremy Oden said.
"Today's vote will help alleviate those demands and provides rate payers an opportunity to actually put money back in their pocket, something that is long overdue."
Commissioner Chris "Chip" Beeker, Jr. added: "Alabama families will have an easier time making ends meet due to the actions we have taken today. It is only because of the policies of the Obama administration that their relief will not be greater than it is. The citizens of Alabama should be aware that many policies of the federal government affect their lives in a negative way."
The statement concluded: "President Obama's administration and his radical environmentalist cronies continue to press for policies that will make it more difficult to deliver low cost natural gas and electricity to Alabama families and businesses.
"While today's reductions are significant, the Obama administration's policies continue to negate the savings realized by ratepayers and jeopardize the future of lower natural gas prices."
Nick Sellers, Alabama Power's vice president for Regulatory and Corporate Affairs, said in the utilities' statement: "There's no question – costs related to federal environmental mandates and other governmental regulations continue to be a concern for us.
"Regulatory costs related to coal-fired generation, in particular, are going to continue to rise as more environmental rules come in to play," Sellers added. "For now, we're pleased that our fuel flexibility is helping blunt the negative impact of these federal mandates."