Prior to The Alabama Public Service Commission’s decision to lower rates for Alabama Power customers last week, it had been a quarter century since major changes had been made to Alabama Power’s rate setting structure.
The Commission has now turned its attention to Alagasco, which hasn’t seen significant changes in its rate setting mechanism since 1987 — 26 years ago. Consumer advocates say their time may have come.
Alabama Public Service Commission President Twinkle Cavanaugh this week announced that the Commission will begin a new public rate review process for Alabama Gas Corporation, commonly known as Alagasco, in September.
“After having successfully reviewed and reduced the rates for customers of Alabama Power and Mobile Gas companies, it is time we begin a thorough and balanced look at Alagasco,” Cavanaugh said in a prepared statement. “The members of the PSC will continue balancing what is fair to Alagasco with the need to provide some measure of relief to consumers during these difficult economic times.”
In spite of continued calls by Commissioner Terry Dunn to close the public hearings and open up potentially costly legal proceedings, Cavanaugh says she favors the transparency of the public hearings and has no plans to alter the process.
“Our public rate review process has worked well twice before, and I am confident it will work smoothly during our inspection of Alagasco, as well.”
Information on the upcoming public hearings can be found below. The Commission has delivered savings to the ratepayers two times in a row, Alagasco customers are undoubtedly hoping the trend continues.
SCHEDULE
September 5, 2013 in Montgomery – The commission will engage in a general overview of Alagasco operations and discuss elements of the natural gas business and its economics.
September 25, 2013 in Auburn – The commission will consider and discuss Alagasco-related topics that include pipeline safety, customer service, economic development and corporate risk. An evening session will be set aside specifically to gather public comment.
October 9, 2013 in Montgomery – The commission will review the Rate Stabilization and Equalization formula for Alagasco, along with its finances and accounting. The RSE formula is used to determine the company’s allowed rate of return on its common equity.
Once the scheduled hearings have concluded, the commission and its staff will review the collected information, determine which rate adjustments are justified, and convene a public meeting of the full panel to vote on suggested changes.
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