The Alabama Public Service Commission on Tuesday returned $100 million to Alabama Power Company customers.
In a unanimous vote by PSC President Twinkle Andress Cavanaugh, Commissioner Chris “Chip” Beeker and Commissioner Jeremy Oden, the commission formally decided to return the money through a rate ECR adjustment.
In simple terms, this rate comprises the estimated fuel cost of Alabama Power providing electricity to customers. Because of the COVID-19 pandemic, demand for power has been lower and the company has thus been able to utilize its most cost-efficient fuel options. As a result, the actual fuel cost has come in lower than estimated, enabling money to go back into customers’ pockets.
ECR adjustments typically occur annually each December, however the PSC on Tuesday moved to get money back to customers ahead of schedule. Alabama Power Company customers will see the refund in their October billing statements. The amount returned to each customer will be based on their respective usage over the 12-month period ending June 30, 2020. Cavanaugh during Tuesday’s PSC meeting said the standard bill credit will be approximately $25.
In a statement to Yellowhammer News, Cavanaugh advised, “Returning $100 million to customers of Alabama Power is the right thing to do at just the right time. The coronavirus pandemic has had such a significant impact on Alabama families and small businesses. Putting money back into the pockets of hard-working Alabamians is one of the ways we can help on the road to recovery.”
This comes after the PSC recently voted to strongly support Alabama’s post-pandemic recovery. Cavanaugh on Tuesday emphasized their continued commitment to this cause.
“Recovery is going to take place at the state and local level, so I’m proud of our commission for stepping up and making sure $100 million will go back into households and into our economy to help us get back on track,” she said.
The PSC president also highlighted how the commissioners have worked with Alabama Power during the pandemic to ensure customers adversely affected by the virus did not lose electricity service.
“Without politicizing this human tragedy by seeking attention for their actions, Alabama Power … [has] simply done what is in the best interest of their customers,” Cavanaugh said in the spring.
On Tuesday, she reflected, “At the PSC we have tried to help every way we could from the beginning, and Alabama Power’s flexibility in dealing with affected consumers has been a model for utilities across the country.”
“We’ll be back stronger than ever. I know we will because I know how great the people of Alabama are. If there’s one group of people who can lead the way it’s Alabamians, and I’m glad we could do our part today,” Cavanaugh concluded.
This is not the first time in recent years that the PSC has returned major monies to customers.
When President Donald J. Trump signed into law the Tax Cut and Jobs Act of 2017, Alabama Power customers saw a benefit of $337 million across 2018 and 2019.
The commission also returned millions to Spire customers in Alabama in the past few years.
Sean Ross is the editor of Yellowhammer News. You can follow him on Twitter @sean_yhn
Don’t miss out! Subscribe today to have Alabama’s leading headlines delivered to your inbox.