Alabama Power Advances Two-Year Rate Freeze, Promising Stability Through 2027
- News (https://www.al.com/news/)
Published: December 2, 2025, 1:47 p.m.
Following today's Alabama Public Service Commission session, Alabama Power announced that every element of its regulated retail rates will remain unchanged through 2027.
“We recognize that budgets are tight, and electricity bills pose real challenges for many households and businesses,” stated Moses Feagin, Alabama Power’s executive vice president, chief financial officer, and treasurer, in a news release.
“This commitment offers customers greater certainty and predictability for electric costs at a moment when other expenses are rising.”
This move follows a projection last year that the company would see a nearly 2% rate drop in 2025. (https://www.al.com/news/2024/12/alabama-power-says-electricity-rates-will-drop-in-2025-heres-how-much-and-why.html)
The release notes that Alabama Power will keep all current rate components intact, including delaying past-approved adjustments for the Lindsay Hill generation facility until 2028. (https://www.al.com/news/2025/08/alabama-power-gets-green-light-to-pay-for-new-gas-plant-with-utility-bill-increase.html)
As part of the pledge to stabilize rates, the company will absorb the newly acquired facility’s costs in 2027 instead of deferring or shifting those costs to a later date.
Last October, an Alabama Power representative told the Public Service Commission that customers would see about $3.80 added to their bills starting in 2027. In August, an official suggested the increase would be slightly lower for some customers.
Feagin emphasized the company’s ongoing commitment to strengthen the energy grid and invest in smart, storm-resilient infrastructure so that customers receive reliable service across communities in the state, all while keeping rates steady over the next year.
Customers should note that monthly bills may still rise or fall depending on their electricity usage.
John Dodd, policy director for the nonprofit Energy Alabama, described the move as an election-year maneuver aimed at avoiding headlines about rate hikes rather than a genuine effort to improve affordability. “What Alabama Power is proposing, at its core, is not a true rate cut but a deferral.” (https://www.al.com/news/2025/11/alabama-powers-two-year-rate-freeze-is-about-politics-not-people-non-profit-says.html)
For tools to help manage power costs, visit alabamapower.com/save.
Heather Gann serves as a breaking news and Birmingham metro reporter for AL.com, bringing coverage on issues directly impacting residents of the Birmingham metro area.
