Reason behind Alabama Power offering a $5 rebate to certain customers

Alabama Power users in Alabama will soon receive a $5 credit from the company. This comes after the Alabama Public Service Commission discovered that the company exceeded the state’s 6.15% profit cap in 2023.

APSC President Twinkle Andress Cavanaugh stated in the commission’s Feb. 6 meeting that any excess earnings would be returned to the customer.

The residential customers who use an average of 1,000 kilowatts will see a $5 credit on their bill, which is a refund for the overpayments made in the previous year.

Alabama Power customers can expect to receive a refund of approximately $14.8 million in the upcoming months, as confirmed by the APSC.

Customers have received rebates in the past. In 2023, customers in the state were refunded $62 million, which averaged out to approximately $23 per person.

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According to a recent report by AL.com, numerous customers have raised concerns about the possibility of being overcharged in 2024.

On January 26th, a tweet expressed the sentiment that the residents of this state are aware of being taken advantage of by this monopoly, which charges us whatever it pleases.

“I’m sitting here in my freezing house, wearing nothing, and yet my electricity bill is through the roof. Alabama Power, you need to understand that we are well aware of your actions, and quite frankly, it’s absurd.”

The company hasn’t increased its rates for approximately a year. They made a series of adjustments during that time, citing federal mandates, inflation, and economic conditions as the reasons behind the changes.

According to Anthony Cook, communications principal with Alabama Power, the recent surge in power bills in Alabama is likely due to the extreme cold snap that occurred in late December and early January.

According to a previous statement to AL.com, the recent extreme cold temperatures in the state have led to increased electricity usage among customers, resulting in higher power bills.

“The power bills our customers received this month [Jan.] reflect the significant amount of energy consumed to maintain a comfortable indoor environment during the extended period of frigid weather. With temperatures dropping below freezing for nearly three weeks, it required considerable power to keep our homes warm,” he explained.

Alabama Power representatives have not yet responded to a request for comment regarding the upcoming rebates.

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