Alabama legislative committees advance bills on PSC, aim to fix high power bills

Alabama lawmakers advanced two bills Wednesday aimed at changing how the Alabama Public Service Commission operates and how electric rates are set.

Rep. Mack Butler’s House Bill 475 seeks to add regular oversight of Alabama Power’s rates by requiring the Public Service Commission to hold one formal rate case hearing every three years. Butler said, “I’m trying to hold the PSC accountable because I’m 62 years old and the last time they had a real rate case hearing I was still in high school. I think it’s more than time.”

Rate case hearings are formal proceedings that include sworn testimony, where utilities justify the rates they charge and present financial information.

Meanwhile, a separate PSC proposal moved quickly in the Senate after being introduced Tuesday and reaching committee Wednesday. Senate Bill 360, titled the “Power to the People Act,” would expand the commission from three members to seven by adding four new members. The bill would also freeze electric rate hikes until 2029 and prevent utilities from passing certain costs — such as lobbying or advertising — onto customers.

The legislation would also create a new cabinet-level “secretary of energy” to oversee operations at the commission. Sen. Clyde Chambliss said, “It transitions the top current staff position at PSC to a Secretary of Energy, a cabinet level appointment. That person has been and will be under the secretary responsible for the agendas and administration of the PSC.”

Chambliss said the position would not have unlimited control over the commission’s agenda due to checks and balances in the bill. “If five of the seven commission members want to add amend take away from the agenda five of the commission members can do so. It’s not absolute power,” he said.

Butler criticized the Senate proposal, saying, “I was not personally thrilled with it. I just felt like it’s growing government. As republicans our job is to shrink government and lower taxes and return more power to the people. I’m not sure that legislation is doing it.”

Unlike Butler’s House Bill 475, Senate Bill 360 does not mention open rate case hearings.

During a public hearing, two people spoke against Chambliss’ bill, including John Dodd, Energy Alabama’s policy manager. Dodd told ABC 33/40 one of his main complaints was, “It will establish a secretary of energy for the state of Alabama, something that’s not only unprecedented but is appointed. That secretary is only held accountable to the governor’s office. They have no election accountability. That it a huge problem in my eyes.”

Both bills will now head to the floor of their respective chamber.