Alabama Power not planning rate cut like TVA
Alabama Power Co. is not planning to cut electric rates like the Tennessee Valley Authority.
TVA is planning to cut rates about 6 percent on Jan. 1 because of lower fuel costs. The move comes after a 20 percent hike by TVA in October.
A spokesman for Alabama Power says the company won’t reduce rates because it is trying to recover about $300 million that has already been spent for fuel to operate its power plants. But spokesman Michael Sznajderman said Alabama Power, which is raising rates about 13 percent, has agreed to go through 2009 without a general rate increase.
TVA serves the northern third of Alabama. Alabama Power serves much of the southern two-thirds of the state.