Estimated reading time: 4 minutes
Key Takeaways
- Alabama Power’s rates are increasing due to a court ruling that permits rate hikes without public hearings and rising fuel costs.
- Average monthly bills for Alabama Power customers are around $159, surpassing the statewide average of $132.
- Summer temperatures are driving higher energy consumption, especially due to increased air conditioning usage.
- Alabama Power offers practical energy-saving tips and programs to help customers manage their rising bills.
- Legal and environmental issues, including lawsuits over coal ash pollution, add complexity to the utility’s operations.
Table of Contents
What’s Happening With Alabama Power Rates?
How Summer Heat is Driving Up Your Bills
Alabama Power’s Advice to Customers
What This Means for Alabama Residents
What’s Happening With Alabama Power Rates?
In July 2025, a significant court ruling allowed the Alabama Public Service Commission to increase electricity prices without holding public hearings. This move has stirred controversy because, historically, public input has been rare for fuel cost adjustments despite repeated rate hikes over the past decade and a half. Meanwhile, Alabama Power, a subsidiary of the Atlanta-based Southern Company, reported a hefty $4.4 billion profit in 2024 [1].
Currently, the average Alabama Power customer pays approximately $159 per month, which is notably higher than the statewide average of $132 per month [1]. This rate difference is particularly impactful as many residents have no alternative providers.
Adding to the public concern, Alabama Power has recently faced a lawsuit over ongoing toxic coal ash pollution near Gadsden, Alabama, raising environmental and health worries in the community [3].
How Summer Heat is Driving Up Your Bills
The fluctuating and soaring summer temperatures in Alabama are contributing substantially to higher energy usage and monthly bills. When temperatures spike, air conditioning use intensifies, pushing power demands — and costs — higher [4].
Alabama Power’s Advice to Customers
To help customers manage these rising bills, Alabama Power has shared several practical energy-saving tips:
- Optimize your thermostat settings: Raising the temperature by a few degrees when you’re away can yield notable savings.
- Use energy-efficient appliances: Consider upgrading to Energy Star-rated units.
- Seal windows and doors: Prevent cool air from escaping to reduce AC workload.
- Utilize Alabama Power’s online tools: Programs like My Power Usage provide personalized data to help monitor and adjust consumption.
- Leverage savings programs and flexible payment options: Alabama Power offers these to ease the financial burden [3][4].
KHOU also highlights general strategies for lowering summer electric bills, including using ceiling fans wisely and minimizing oven use on hot days [4].
What This Means for Alabama Residents
The combination of legal decisions enabling rate hikes without extensive public hearings, environmental lawsuits, and summer heatwaves create a challenging landscape for Alabama Power consumers. While the utility company is backing efforts to help customers control costs, those reliant on Alabama Power face some of the highest electricity bills in the state.
For consumers, staying informed about rate changes, utilizing available energy-saving resources, and advocating for transparency in utility regulation are more important than ever.
FAQ
Why are Alabama Power rates increasing?
Rates are rising due to a court ruling that allows the Public Service Commission to hike prices without public hearings, combined with escalating fuel costs and fuel-related expenses.
How can I reduce my electricity bill during summer?
Use energy-efficient appliances, optimize thermostat settings, seal windows and doors, and leverage Alabama Power’s online tools and savings programs to manage consumption and costs effectively.
What environmental concerns are associated with Alabama Power?
Alabama Power faces lawsuits related to ongoing toxic coal ash pollution near Gadsden, raising environmental and health concerns in the community.