On a significant election day, the Alabama Public Service Commission (PSC) called on Alabama Power to immediately cease billing customers for advertising costs related to its promotional campaigns. Alabama Power, the state’s largest electricity provider, covers roughly two-thirds of Alabama and invests millions in marketing, particularly in response to public criticism about rising electricity prices.
A recent state law mandates that starting in 2029, Alabama Power cannot pass on the costs of its advertising to customers. However, the PSC President Cynthia Lee Almond proposed an interim measure to begin enforcing this change sooner, suggesting that Alabama Power voluntarily exclude advertising expenses from customers’ bills until the law formally takes effect.
During a recent meeting, Almond highlighted the importance of expediency in this matter, stating, “I don’t see any reason why we shouldn’t go ahead and take steps now to begin that process.” The proposal received unanimous support from the commission.
Currently, Alabama Power transfers half of its non-public safety advertising costs to customers. In the last year, the company spent over $6 million on general advertising, averaging around $4 for each customer. The impact of the new prohibition on these costs remains uncertain.
Daniel Tait, executive director of Energy Alabama, expressed optimism regarding the PSC’s action, emphasizing the potential benefits for consumers facing high electricity bills. This decision marks a pivotal moment as the commission prepares for a major restructuring, expanding from three to seven members in January, along with the appointment of new leadership under Gov.-elect Tommy Tuberville.
Why this story matters
- The PSC’s action could lead to significant financial relief for consumers amid rising electricity costs.
Key takeaway
- The call to exclude advertising costs from customer bills anticipates the implementation of a new law aimed at protecting customers.
Opposing viewpoint
- Some critics may argue that the advertising expenses support consumer awareness and need funding separate from customer bills.
