Alabama Power customer refunds coming this summer

Published 1:36 pm Thursday, February 23, 2023

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By JOYANNA LOVE | Managing Editor

Alabama Power will be giving rebates to customers this summer as a credit on the August bill.

Local customers can expect to receive a credit of about $23.

However, Alyson Tucker with media relations for the company said each customer’s exact refund will be based on their electric bills from July, August and September of 2022.

The credits are expected to total $62 million across the state. The credits are being planned because the profit in 2022 to Alabama Power was 6.01% , which is above the range allowed by the Alabama Public Service Commission. Funds over this amount can be required to be used to directly benefit customers.

The Alabama Public Service Commission approved a motion on Feb. 7 requiring the revenue to be used for refunds to customers in the summer of 2023. The summer being deemed by the commission when the credit would have the most impact.

Local resident Jason Green found it easy to see how an overage could occur.

“Alabama Power forecasts power usage based on previous years,” he said. “We all know the previous year in central Alabama had much higher levels of usage.”

These usage estimates can then impact cost to consumers as Alabama Powers adjusts for its expenses with increases as it did in 2022.

“The fact Alabama Power is willing to put money back into the pockets of its customers, whether through checks or credits, proves the company is doing its part to be a responsible resource provider,” Green said. “This might not happen elsewhere in the country, at least not without some arm bending. I think Alabama Power being willing to do this shows them to be a good neighbor. As long as they keep the power on, I really can’t find a reason to complain. I think these folks do a really good job, from the lineman working after or in the storm to the people making decisions corporately. Also, I am thankful for the due diligence being performed by the Alabama Public Service Commission in monitoring the situation.”

However, local resident Stanley Varner would have liked to see the refunds distributed sooner.

“Alabama Power does great work for the city of Clanton. It is great to see Alabama Power being responsible for their mistake,” Varner said. “However, I am a strong believer that mistakes should be rectified immediately. Think of it this way, the money overcharged will continue to grow interest for someone and not the customers. For instance, if a customer could not pay their bill for the month of February, would Alabama Power accept a summer payment?”

Both residential and commercial customers will receive the refund in August.