Published On: 12.09.14 | 

By: Keisa Sharpe

Public learns about Alabama Power operations, environmental expenses, during annual hearing

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Members of the public and representatives from a variety of interest groups heard details related to Alabama Power’s operations and the challenges the company faces to meet federal environmental mandates during a lengthy public meeting in Montgomery.

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Alabama Power officials sat before members of the state Public Service Commission (PSC) and commission staff and answered questions about the company’s projected expenditures for 2015. Faced with rising costs and increased expenses related to federal environmental regulations, the company has filed for its first rate increase in more than three years. The 4.93 percent increase is scheduled to take effect on Jan. 1.

The meeting in Montgomery, which takes place every December, also provides an opportunity for the public and other interested parties to ask questions about the company’s actions and its outlook for the coming year. The meeting takes place whether or not the company’s rates are changing.

Tuesday’s meeting, which began in the morning and lasted until late afternoon, began with detailed presentations regarding the company’s plans and costs connected to environmental regulations. The company is making significant changes at its plants, including adding new environmental controls, to meet a number of federal mandates.

The company also is planning to close some generating units that use coal, while switching other coal units to natural gas.

baghouse 4The afternoon session focused on investments the company is making related to its obligation to provide reliable and affordable power to Alabama Power customers.

Among those present for all or part of the meetings were a number of environmental organizations, including the Alabama Environmental Council, GASP, the Southern Environmental Law Center and the Southern Alliance for Clean Energy. Other groups that attended include the Alabama Industrial Energy ConsumersAmerican Association of Retired Persons, Generation AmericaJobkeeper Alliance, NAACP and the Partnership for Affordable Clean Energy (PACE).

The impact of rising costs and increasing regulation is forcing up utility prices around the country. During the more than three years that Alabama Power successfully held rates flat, regulatory agencies in other states approved nearly 170 rate increases for electric utilities.

Another 44 proposed rate increases are pending, with more utilities expected to file increases in the coming months.