Is Alabama Power Ripping Us Off?

Lynda Kirkpatrick

First, let us understand who the Public Service Commission (PSC) is. The PSC regulates many utilities in the State of Alabama, including electricity, telecommunications, and gas.

According to the information on the PCS website, the Electricity Policy Division primarily oversees the regulation of investor-owned electric utilities in Alabama, while also monitoring and participating in federal policy issues affecting the electric industry. In addition, the Electricity Policy Division is responsible for all duties surrounding the Public Affairs function of the Commission. This division is organized into three sections, consisting of: 1) Electricity, 2) Federal Affairs, and 3) Public Affairs.

The Headquarters for Alabama Power is in Birmingham, Alabama, and is one of four utilities operated by Southern Company, one of the largest generators of electricity.  More than 84,000 miles of power lines carry electricity to customers over 44,500 square miles.

The power bills in Alabama are outrageously expensive. More and more, I am hearing of people getting their power cut off because they cannot afford to pay the high expenses.  There are programs that will help those who are struggling to pay their bill.  There is Budget Billing available to those who qualify.

Alabama will have the chance to elect two people instrumental in setting the cost of their power bills for the next four years.  On primary ballots this May, voters will have the chance to vote for their pick for Place 1 and Place 2 on the Public Service Commission. The winners from each primary will face off in the general election in November.

First, let’s evaluate the performance and re-election prospects of the current PSC members. Take a look for  State legislators or local officials with a focus on energy and utility issues. Identify influential figures in the energy sector who may run for office. Consider candidates with strong backgrounds in sustainability and renewable energy.  Support grassroots candidates advocating for consumer rights and fair utility rates.  Watch for previous PSC members or state officials who may seek to return to public service.

The Democratic candidates for Place 1 are James Gordon, a chiropractor and former State Representative from the 98th District; John Northrop, an educator and journalist; and Jeff Ramsey, an electrician and social media personality.  In Place 2 is Sheila McNeil, the Chair of the Madison County Democratic Party.  Ms. McNeil previously served on the San Antonio, Texas City Council. She is running to give Alabamians a voice in the PSC.

Alabama is one of the poorest states in the nation, with some of the highest electric bills. The local utility earns massive profits producing dirty energy with almost no pushback from State regulators. This is why this election is more important than we realized. If you are not angry about the high cost of staying warm in the winter and cool in the summer, you will be when you read this. The sharp contrast between the financial struggles of Alabama citizens and the soaring profits of utility executives will certainly cause your blood to boil.  Investor-owned electric and gas utilities paid their CEO’s more than $647 MILLION.  The Southern Company, which is the parent company of Alabama Power, paid former CEO Tom Fanning a staggering $33 million, and current CEO Chris Womack $23 million. These figures stand in sharp contrast to the financial reality of countless Alabama residents who struggle to keep their lights on.  Despite this, Alabama Power ranks 51st out of 53 U.S. utilities in energy efficiency. This means that while Alabamians are using more energy and paying more for it, Alabama Power is doing little to help them reduce their consumption and lower their bills.

Alabama Power is part of a broader trend among utilities, where executives receive ever-increasing compensation while disconnecting customers unable to pay their rising bills. Georgia Power and Atlanta Gas Light, sister companies to Alabama Power, disconnected nearly 271,000 residential customers in 2023 alone, which is the highest number among all utility companies. This trend is not isolated; utilities nationwide are increasingly shutting off power to struggling households. In the first ten months of 2022, utilities disconnected the electricity of more than 1.5 million households, marking a 29% increase from the previous year. Essentially, utility companies are laughing all the way to the bank while targeting poor people with disconnection.

The Southern Company executives not only receive exorbitant compensation but also enjoy lavish perks. Former Southern Company CEO Tom Fanning and current CEO Chris Womack have access to company aircraft for personal use, tickets to entertainment events, and funded spousal expenses for business travel. These benefits are ultimately paid for by people like you and me, who are often left to choose between paying our electric bill and other essential needs like food and healthcare.

While Alabama Power executives live in luxury, Alabamians are left to bear the brunt of soaring electric bills. In an apparent attempt to hide the ball, Alabama Power recently recommended setting thermostats twenty degrees below outside temperatures. Alabama Power seems to care more about protecting its executives’ salaries than helping you stay comfortable in your home.

Alabamians deserve fair utility rates and transparency from their electric utility. It’s time for Alabama Power to prioritize the needs of its customers over the profits of its executives. As temperatures rise, so does the urgency for a solution that ensures no family has to choose between staying cool and staying secure.

In the upcoming election, choose wisely.  Marion County is in Place 2. We have one Democrat on the ballot, and that is Sheila McNeil. She is up against Brent Woodall, who has worked for the Alabama Public Service Commissioner Chip Beeker and was a prosecutor with the Alabama Attorney General’s Office and the United States Attorney General’s Office for the Middle District of Alabama. Ms. McNeil is the only candidate on the ballot who has even mentioned the concern of high cost for Alabama families.

Lynda Kirkpatrick

Marion County Democratic Party Chair
House District 17 State Democratic Executive Committee Alabama Democratic Party
Member of Alabama Democratic County Chairs Association  

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