Alabama Power to increase rates - WSFA.com Montgomery Alabama news.

Alabama Power to increase rates

MONTGOMERY, Ala. (AP) - Alabama Power Co. has scaled back its rate hike request at the Public Service Commission.

The power company negotiated with its largest customers over the rate hike and unveiled a new proposal today at a public hearing before the PSC in Montgomery.

The new proposal would cause 1,000 kilowatt hours of electricity for residential customers to go up $9.30 rather than $16.45.

The commission will meet Oct. 7 to consider the new rate.

If approved, it will go into effect Oct. 9. The PSC guarantees Alabama Power that it will recover through its rates the amount it spends on fuel.

But through July, Alabama Power had spent $239 million more on fuel than it had recovered through its rates.

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