The Alabama Public Service Commission Tuesday voted to approve a new plan that will reduce the rates of the Alabama Gas Company, or Alagasco.
The regulatory board voted unanimously to reduce Alagasco's return on equity from between 13.15 and 13.65 percent, where it had been since the 1980s, to a new level of between 10.5 to 10.95 percent.
Alagasco's annual revenues will be reduced by around $13 million, according to the PSC, and that reduction will keep money in consumers' pockets. Alabama Public Service Commissioner Jeremy H. Oden says that over the life of the revised four year term, Alabama Gas Company customers should see cumulative savings reaching upwards of $50 million.
PSC President Twinkle Andress Cavanaugh says the average customer will save around $33 per year, or around $2.75 per month.
"This is a real victory for the consumers," Cavanaugh said. "I promised to review all utility rates regulated by the PSC in order to keep utility rates down and, in return, continue to recruit and grow jobs in Alabama. All of these efforts boil down to Alabama families getting to keep more of their hard earned money."