Alabama Power is raising its rates for the third time in six months, the company announced earlier this week, and residents can expect to pay hundreds of dollars more for electricity in 2023.

The utility company first announced a rate increase in July, which took effect the next month and raised the average power bill by around $6.

Four months later, Alabama Power announced another rate hike, this time increasing costs by about $10 a month. Now, on Tuesday, the company has announced a third hike in rate, raising average bills by almost $7 more each month.

Although each increase has been presented as an adjustment, not a dramatic rate hike, the three hikes combined mean customers will be spending almost $23 a month more for electricity -- that's an increase of $275 a year compared to rates before the first "adjustment" was announced in July.

Tuscaloosa Thread logo
Get our free mobile app


The company blamed the latest price hike, which will take effect in January, on "compliance with federal requirements, as well as unprecedented inflation and economic conditions."

"These federal mandates and regulations, with which the company and utilities across the country must comply, continue to put pressure on customer costs," a company spokeswoman said in a statement. "The increase in the cost to our customers associated with these federal requirements will be about $6.81 for the typical residential customer using 1,000 kilowatt hours per month. As these federal policies impact our state, we’re here to help customers who may need assistance. To discuss payment options, customers can chat with us online, give us a call or visit us in person at one of our offices."


The Public Service Commission, which oversees Alabama Power and other utility providers in the state, approved the new increase Tuesday.

The PSC has not yet commented on the new rate hikes but railed against the federal government last month when Alabama Power announced its last adjustment. Coal prices have doubled in less than two years, they said, and natural gas costs have roughly quadrupled.

"Major sources of fuel for electricity generation have increased dramatically since Jan. 20, 2021, when President Biden took office," PSC Spokesperson Caleb Hicks said in a statement. "Alabamians will now see the consequences of the punitive energy policy coming out of the Biden administration."


Alabama Power says resources are available for customers who are struggling to keep up with the increased cost of electricity, and anyone needing help can chat with a representative at or 800-245-2244.

Top Stories from the Tuscaloosa Thread (11/28 - 12/5)

16 of the Top Stories published by the Tuscaloosa Thread during the week of November 21st, 2022.

More From Tuscaloosa Thread