From Fortune · Dennis Pillion · · 1m 40s
Alabama Power must stop billing customers for ads by 2029
The state's largest utility spent over $6 million on advertising last year, half of which customers paid for. A new law will end the practice, but not until 2029.
In brief
The state's largest utility spent over $6 million on advertising last year, half of which customers paid for. A new law will end the practice, but not until 2029. Alabama's Public Service Commission asked Alabama Power to stop billing customers for advertising immediately, four years before a new state law requires it…
Alabama Power's advertising bill
Alabama Power, the state's largest electricity provider covering two-thirds of Alabama, spent more than $6 million on general advertising last year, roughly $4 per customer.
Customers pay half the cost
Currently, Alabama Power is allowed to bill customers for half of its non-public safety advertising costs, meaning ratepayers subsidise the utility's promotional campaigns.
New law bans the practice
A state law passed earlier this year will prohibit Alabama Power from including advertising costs in customers' electric bills. But the law does not take effect until 2029.
Commission requests immediate action
On election day, the Alabama Public Service Commission requested that Alabama Power voluntarily stop billing customers for advertising effective immediately, rather than waiting until 2029.
“I don't see any reason why we shouldn't go ahead and take steps now to begin that process, rather than waiting until Jan. 1, 2029.”
Almond's motion passes
PSC President Cynthia Lee Almond moved to request Alabama Power exclude all advertising expenses from retail rate setting until after December 31, 2028. Commissioners Jeremy Oden and Chris Beeker IV voted yes.
Advocates praise the move
Daniel Tait, executive director of Energy Alabama, said the move was a boon to customers who faced some of the highest electric bills in the country in recent years.
“We are grateful for the leadership of President Almond and the full commission for acting to end customers paying for Alabama Power's advertising.”
Commission undergoes major overhaul
In January, the Alabama Public Service Commission will expand from three members to seven. Outgoing Governor Kay Ivey appointed four new commissioners, including the PSC's two first-ever Black members.
The key point
Alabama's Public Service Commission asked Alabama Power to stop billing customers for advertising immediately, four years before a new state law requires it in 2029.
