Alabama Power Projects Rate Cut for Customers in 2025
BIRMINGHAM, AL – Alabama Power announced on Tuesday that it anticipates a rate reduction of nearly 2% for retail customers beginning in 2025. According to the utility, an average customer consuming 1,000 kilowatt hours will see their monthly bill decrease by approximately $8.62 in the first quarter of 2025. Over the course of the year, this translates to an estimated monthly savings of 80 cents.
The projected rate decrease is attributed to several factors, including lower fuel prices and a recent $96 million judgment awarded to Alabama Power in a lawsuit against the federal government. The utility plans to pass along this financial restitution to its customers, resulting in a 1.44% overall rate reduction.
The case, which has been ongoing since 1998, revolved around allegations that the federal government failed to uphold contractual obligations regarding the removal of spent nuclear fuel from Alabama Power facilities. The favorable ruling has played a significant role in allowing the utility to lower rates for its customer base.
In addition to the upcoming adjustment, Alabama Power noted that customers experienced rate reductions in 2024, with the Public Service Commission implementing decreases in both July and December driven by declining fuel costs.
As Alabama Power moves forward with its plans, customers can expect not only immediate relief in their electricity bills but also a continued focus on efficiency and cost-effective operations. More details regarding the specific implementation of these rate changes will be communicated to customers as 2025 approaches.
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