Low energy costs give Alabama an economic development advantage compared to other states but Gov. Robert Bentley is among those concerned that the “war on coal” and federal mandates could dull his state’s edge.

When he addressed the Birmingham Business Alliance on Nov. 19, Bentley raised his concern that more stringent regulations from the Environmental Protection Agency could force companies like Alabama Power to raise their rates to comply with the changes.

After that address, Bentley elaborated.

“The link between affordable energy and economic growth is important to the people in Alabama,” he said. “Alabama’s coal mining industry employs more than 4,500 workers and supports other industries that provide ancillary services to the mining industry. The new EPA plan will hurt the Alabama economy and force us to comply with Washington mandates that could result in higher electricity bills for Alabama families and business owners.”

In December, Alabama Power filed a request with the Public Service Commission to raise rates by 4.93 percent due, in part, to costs associated with EPA regulations.

Even with the increase, Alabama Power’s total retail price should remain about 10 percent below the national average and approximately 2 percent below the Southeast average through 2015.

Gov. Bentley and others remain opposed to additional federal regulations that threaten to drive energy prices higher in Alabama and other states.

Companies have invested billions of dollars in Alabama and created thousands of jobs based, in part, on the low energy costs here. Many have been vocal about the role low electricity rates played in their decision to locate in Alabama.

In her recent report on the $600 million Airbus plant that will create 1,000 jobs in Mobile, Jessica Stone, a reporter with China Central Television America, asks and answers her own question after interviewing Allan McArtor, chairman and CEO of Airbus.

“What do companies see in the state of Alabama that makes it an attractive place to set up shop?” Stone asked. “Well, a few things — like low electricity rates and low taxes.”

It’s a refrain economic developers in Alabama hear often.

“Whether it’s new companies we’re recruiting or existing companies we work with on expansion opportunities, we often hear how Alabama’s low energy costs are an important factor to doing business in the state,” said Ken Novak, vice president of Economic and Community Development at Alabama Power. “When you are talking about an item that impacts the bottom line and their costs of doing business, the price of energy is one of those major factors that companies weigh.”

Alabama Power was successful at keeping rates level for more than three years before its current rate increase plan, scheduled to go into effect Jan. 1, 2015. Bentley and economic developers are hopeful federal regulations will not continue to force higher prices for consumers or take away one of the state’s most effective industrial recruitment tools.

Alabama Power is not alone in having to raise rates. 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 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.