PSC doesn’t have to hear from public on Alabama Power fuel costs, judge rules
A judge has ruled that the Alabama Public Service Commission does not have to allow public input when deciding how much Alabama Power can charge customers for fuel costs.
“This is a disappointing outcome for Alabamians who have no choice but to pay the high cost of fossil fuels on their Alabama Power bill,” said Daniel Tait, executive director of Energy Alabama, a nonprofit that advocates for renewable energy. “Citizens deserve a seat at the table where regulators are making big decision about their bills, like fuel cost proceedings.”
On Monday, Montgomery County Circuit Court Judge Brooke Reid denied an appeal from Energy Alabama to give public input in the commission’s proceedings for Alabama Power’s “Rate Energy Cost Recovery,” or Rate ECR.
Rate ECR is a significant factor in every ratepayer’s bill. It’s the way Alabama Power can recoup what it spends on fuel, including coal, natural gas, or power from another utility.
Because fuel costs fluctuate frequently, the Rate ECR is meant to be adjusted from time to time. The public service commission sets the rate.
Energy Alabama had petitioned to be able to give public input in the commission’s Rate ECR docket. But the commission denied the group’s request twice: first in May of last year, and again in November.
The nonprofit then appealed the commission’s denial to the circuit court. But in her Monday ruling, Reid said Energy Alabama did not show that its rights had been violated by the commission’s denial, nor did the group show that the commission’s decision was based on facts contrary to “the substantial weight of the evidence.”
A representative for the public service commission did not respond to a request for comment on Tuesday afternoon.
Terah Boyd, a spokesperson for the Southern Environmental Law Center, which represents Energy Alabama, said the groups had not decided whether to appeal the ruling to a higher court.
The commission argued that Energy Alabama could not intervene in the Rate ECR docket because there was no “proceeding” in which they could participate. The commission has not held a formal proceeding on Alabama Power’s Rate ECR since 2008.
“The commission is not prepared to find that the routine status reports and intermittent consent orders issued in [the Rate ECR docket] since the last proceeding in that cause in 2008 are equivalent to the commencement, reactivation or continuation of a proceeding per the commission’s rules,” the public service commission’s November denial states.
Alabama Power also argued against Energy Alabama’s petition. A representative for the utility declined to comment for this story.
Since 2000, the commission has adjusted the utility’s Rate ECR at least 16 times, according to an AL.com review of available records.
Energy Alabama argued that the public service commission is breaking its own rules by not allowing the public to give input in Rate ECR proceedings. According to a news release from the environmental groups, when the rate needs to be adjusted upward or downward, the commission must hold a formal proceeding and allow public input.
“While other southern states have meaningful public engagement in fuel cost proceedings, Alabama Power customers will continue to be shut out of the process,” said Christina Tidwell, a senior attorney with the Southern Environmental Law Center. “Unfortunately, the commission and Alabama Power will continue adjusting the rates customers pay without transparency and accountability.”
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