The Alabama Legislature passed a bill reforming the state’s Public Service Commission on Tuesday and freezing electric rates through 2029, sending HB475 to Governor Kay Ivey after the Senate reworked the bill to include a broader governance restructuring than its original sponsor intended.
HB475, originally sponsored by State Rep. Mack Butler (R-Rainbow City), would have required the PSC to hold formal electric rate hearings every three years.
The Senate Governmental Affairs Committee stripped that provision and replaced it with language mirroring SB360, sponsored by State Sen. Clyde Chambliss (R-Prattville), expanding the PSC from three statewide elected commissioners to seven, elected from Alabama’s congressional districts, and creating a governor-appointed Secretary of Energy.
The House voted 72-26 to concur in the Senate amendments after rejecting Butler’s motion to send the bill to a conference committee. Butler voted against the final version of his own bill.
The legislation extends an existing freeze on retail base electric rates through 2029 and requires an annual public hearing on rates. Under the new structure, a formal rate case requires either a vote of five of the seven commissioners or an order from a forthcoming Secretary of Energy.
House Speaker Nathaniel Ledbetter (R-Rainsville) and Senate President Pro Tem Garlan Gudger (R-Cullman) issued a joint statement following passage:
“The Alabama House and Senate stood united to reform how utilities are regulated and demand an unprecedented amount of accountability for consumers across the state,” they said.
“In addition to outlawing rate increases for the next three years while still allowing rate reductions at any time, the Power to the People Act shines a bright, public spotlight on how rates are set.
With this legislation, regulated utilities will be required to publicly testify about their finances under oath with the threat of perjury and justify the rates that they charge their customers.
At a time when more than $30 billion in rate increases are pending in states across the country, the Legislature took strong action to protect and shield Alabamians from higher rates for the next several years.
Moving forward, the expanded commission will have the authority to call formal rate hearings and evaluate Alabama’s rates against national and regional averages, which represents a major step toward greater transparency, accountability, and long-term savings for ratepayers across the state.”
The bill now awaits action from Governor Ivey.
Thursday is the 26th day of the 2026 legislative session. There are 3 remaining.
Sawyer Knowles is a capitol reporter for Yellowhammer News. You may contact him at [email protected].
