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Wednesday, July 17, 2013
Some groups plan to call for rate changes for Alabama Power Co. when the state’s utility regulatory board finishes hearings on the state’s largest electric utility. The Associated Press reports AARP and Alabama Arise say the current rate structure is too favorable to the company.
The Alabama Public Service Commission has been holding hearings on whether to change its rate stabilization plan for utility company. According to the AP, the rate stabilization plan provides the company with a rate of return on common equity between 13 percent and 14.5 percent and small rate adjustments can be made when the return falls outside that range.
AARP hired a utility expert who recommends a 10 percent return and estimates that would save customers about $172 million in one year. Alabama Arise, representing Alabama’s poor, reportedly hired their own utility expert who plans to tell the PSC that the system for Alabama Power “unjustifiably rewards the company and is costly to the citizens of the state.”
Wednesday is supposed to be the final hearing, but public comments could extend into Thursday, if necessary.
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Keywords: Alabama Power,AARP,Alabama Arise,Public Service Commission
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