Alabama Power rates going down again

MONTGOMERY, Ala. (AP) - Alabama Power Co. rates are going down for the third time since June and the average residential customers should save nearly $2 per month, starting in April.

The Alabama Public Service Commission announced the rate reduction Tuesday.

Part of the decrease is due to the utility realizing savings on agreements to purchase electricity from other power plants. The other part is due to a decrease in the amount that customers pay each month for Alabama Power's reserve fund for repairs after natural disasters.

Alabama Power spokesman Pat Wylie said the typical monthly household bill for 1,000 kilowatt hours will drop from $120.77 to $118.79. That's a decrease of $1.98.

(Copyright 2010 by The Associated Press. All Rights Reserved.)