Alabamians are currently facing some of the highest residential power prices in the Southern region, a situation that brings the role of the state's Attorney General (AG) into sharp focus ahead of the upcoming election. According to data from the Energy Information Commission, residents paid an average of 16.04 cents per kilowatt-hour for electricity in June, exceeding the regional average of 14.89 cents.
Under Alabama law, the Attorney General possesses the authority to intervene in rate cases presented before the Alabama Public Service Commission (PSC) on behalf of the public. Historically, this power has been seldom utilized, particularly since 1982 when the PSC adopted a process that has effectively ensured utility companies a guaranteed profit. However, this summer marked a shift when the AG's office actively intervened in a case involving a natural gas company.
Democratic nominee for Alabama Attorney General, Jeff McLaughlin, stated in a recent interview that he would approach the obligation to represent power customers with extreme seriousness. He committed to working toward fair prices for electricity and other services for residents. McLaughlin believes the AG's office should serve as a champion for ratepayers, especially given that energy bills in Alabama are as high as or higher than those in other parts of the country. He intends to use the office to advocate for ratepayers regarding electricity costs with the PSC to ensure appropriate pricing. McLaughlin also noted his belief that it has been approximately 40 years since a rate case specifically pertaining to Alabama Power's rates, emphasizing that the AG's office should be more proactive in representing ratepayers.
Beyond power rates, McLaughlin also expressed his desire to address the increasing number of data centers, which consume substantial amounts of energy and could potentially drive up electric bills. He indicated that the AG's office could support a moratorium or the establishment of regulatory measures, particularly procedural regulations, to empower communities to protect themselves if a data center is not wanted. McLaughlin affirmed he would leverage the office's influence to slow the growth of these data centers and ensure thorough understanding of their community impact.
Messages sent to the campaign of Katherine Robertson, the Republican nominee for Attorney General, seeking comment on these issues on Tuesday and Wednesday, did not receive a response. Robertson's campaign website, which highlights support for President Donald Trump and law enforcement, does not include a dedicated section on utilities. Robertson currently serves as chief counsel for Alabama Attorney General Steve Marshall.
The discussion around power issues has also emerged in the governor's race. Republican gubernatorial nominee Tommy Tuberville has stated his intention to extend an existing rate freeze, voluntarily proposed by Alabama Power, beyond its 2029 expiration. In contrast, Democratic gubernatorial nominee Doug Jones has called for the PSC to conduct formal hearings on any proposed rate increases by Alabama Power, arguing that current frozen rates are too high. Jones has also advocated for a one-year moratorium on the construction of new data centers. Tuberville, while initially dismissive of criticisms regarding data centers, opposes a moratorium but pledged to ensure data centers compensate communities for their impacts.
In recent months, the AG's office has demonstrated increased use of its oversight capabilities. Earlier this year, the office challenged the rate of return requested by Spire Energy, a natural gas company. The PSC Board ultimately aligned with the AG's recommendation, allowing Spire Energy to earn a 9.4% return on equity rather than the 10.5% the company had sought. Additionally, in August, the AG's office submitted a comment to the PSC, asserting that board members, not staff, must vote on whether to approve contracts between energy companies and data centers.
Daniel Tait, executive director of Energy Alabama, an organization promoting renewable energy, underscored the important role of the AG's office in advocating for ratepayers before the PSC, especially considering the profit motives of utility companies. Tait explained that while the AG's office holds the same authority as the public to comment on utility rate requests, it gains access to significantly more non-public information. He further noted that the AG's office receives unredacted filings and a greater volume of data than the general public, positioning it uniquely to understand utility operations.