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Alabama Power rate increase

Electric · Alabama · Investor-owned utility · part of Southern Company

Approved

Last checked

Alabama Power has an approved rate change taking effect January 2028: Lindsay Hill gas plant cost recovery (Rate CNP). See the details below for what the sources say about bill impacts.

Details and sources

Rate changes, newest first

Lindsay Hill gas plant cost recovery (Rate CNP)

Rider · Electric

Approved

Typical residential bill

Not stated for a specific usage level. Any figures the sources give are in the summary below.

Filed
Not disclosed
Decided
August 5, 2025
Effective
January 2028
Requested increase
Not disclosed
Approved increase
Not disclosed
Docket
Not disclosed

The PSC approved Alabama Power's $622 million purchase of the 895 MW Lindsay Hill gas plant in August 2025, along with a Rate CNP charge that SELC put at about $3.32/month. It was slated for 2027, but the December 2025 rate freeze delayed it to January 2028 billing.

Utility's stated reasons

  • purchase of an existing gas plant to meet growing demand
Sources (4) · Verified against regulator or utility filings

Last verified Sep 29, 2026

Rate freeze through 2027 (Alabama)

Other · Electric

In effect

Typical residential bill

Not stated for a specific usage level. Any figures the sources give are in the summary below.

Filed
Not disclosed
Decided
December 2, 2025
Effective
Not disclosed
Requested increase
Not disclosed
Approved increase
Not disclosed
Docket
Not disclosed

The PSC approved Alabama Power's plan to hold rates steady through 2027: no upward Rate RSE adjustments, with the Rate CNP compliance and fuel (Rate ECR) factors held through December 2027. Nuclear tax credits help offset the cost. A 2026 state law (HB 475) also bars base retail rate increases from Oct 1, 2026 through Jan 1, 2029.

Utility's stated reasons

  • rate stability for customers
Sources (5) · Verified against regulator or utility filings

Last verified Sep 29, 2026

Who decides

  • Alabama Public Service Commission (Alabama)

Utility website: www.alabamapower.com

Last checked Oct 2, 2026. Spotted something out of date? Tell us.