Alabama Power to Increase Customer Rates to Cover Higher Cost of Fuel

Customers statewide will see slight increases to their electricity bills as Alabama Power adjusts its rates to cover its own higher spending on fuel, a company representative told the Thread Wednesday morning.

Danielle Kimbrough, a spokesperson for Alabama Power in West Alabama, also said customers' July bills will be about $20 cheaper than normal thanks to a one-time credit as reimbursement for lower-than-expected costs in 2021.

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"While the cost of necessities like gas and groceries has increased, Alabama Power has worked hard to keep the cost of electricity as low as possible. However, the rising cost of fuel has necessitated an adjustment to our rate," Kimbrough said. "Beginning in August, the typical residential customer bill will increase by about $6 a month to cover this higher cost of fuel. Using diverse fuel types and sources has helped dampen the increase – which is lower than the current rate of inflation. We do not make any money from fuel expenses, and remain committed to providing the low-cost, dependable service customers have come to expect."

The rate increase will be effective in August, and is about 5 percent higher than current rates. That increase will be partially offset

The one-time credit on the July bill will come out to around $19 for the typical customer, she said.

Kimbrough said the company is there to support any customer struggling to pay their bills this summer and assistance can be provided after a conversation through the online Customer Support Center, a phone call at 800-245-2244 or a face-to-face meeting at any Alabama Power office.

The company also shared a list of Payment Assistance Programs customers can take advantage of here.

Kimbrough also said customers can be proactive in conserving energy use, even during the brutal heat of Alabama's summers.