Alabama Power Customers to See Rate Reduction

Alabama Power has announced a 1.88% reduction in overall retail rates for 2025, attributing this to lower fuel costs and a $96 million legal judgment returned to customers from January to March 2025. A typical residential customer using 1,000 kilowatt-hours will see their monthly bill reduced by approximately $8.62 during the first quarter of the year. The Alabama Public Service Commission (APSC) previously approved multiple rate reductions, including a 2.04% decrease in July and a 3.27% reduction in December. Despite the overall decrease, Alabama Power has faced significant inflationary pressures, with costs for transformers rising by 204% and power poles by 56%. Additionally, construction of the new Alabama State House is reported to be 4 to 6 months behind schedule, although it remains on track to meet the $325 million budget. The completed State House is expected to replace the current outdated facility, which has been in use since 1985 and requires substantial repairs.