PSC gives 2nd look to Alabama Power increase

MONTGOMERY, Ala. (AP) - The rate increase that the Public Service Commission approved for Alabama Power Co. last year is getting a second look. And it might get reduced.

The PSC has scheduled a review during its monthly meeting Tuesday. The PSC agreed in October to raise rates more than 13 percent for most residential customers. The increase was primarily to help the power company cope with higher costs for coal and natural gas.

Alabama Power spokesman Pat Wylie said Monday the utility has reported to the commission that fuel costs have come down since then and inexpensive hydroelectric production has gone up due to more rain. Alabama Power is the largest electric utility in the state. The second largest, the Tennessee Valley Authority, raised rates 20 percent last year, but it has now rolled back most of that increase.

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