COMMUNITY
Alabama Power
When former PSC president Terry Dunn tried, in 2013, to reform what UAB political science professor Dr. Robert Blanton refers to as a clear example of regulatory capture, he was run out of office by interests representing the utility. According to Dunn, Matrix LLC - the consultancy firm hired by Alabama Power to purchase positive press - had private investigators trail him.
Monopolies have a long history of intimidating those they perceive as a threat to their bottom line. After all, the whole point of the effort is to gorge on market share and use the resulting spoils to take out the competition.
Alabama Power responds (ref) to inquiries about this sort of behavior with flowery corporate language, if at all. Meanwhile, their customers pay (ref) the third-highest residential bill in the nation, after the Pacific Non-contiguous Islands and Hawaii. Dr. Blanton has accounted for differences in usage, citing lower rates in places with similar climates and risks due to natural disasters, such as Louisiana and Texas. So why do Alabamians sacrifice so much more of what they make to keep the lights on?
AP has promised (ref) a rate freeze. Alabama’s governor-in-waiting got to put his face (ref) on it, naturally. The PSC is congratulated (ref) on doing their job. All the right folks get a pat on the back.
Workers keep working.
Families make hard decisions.
The grapes of wrath grow heavier for the vintage.
C’est la vie; life goes on.
It’s certainly a good time to freeze rates. Not only are they being frozen as Alabama Power continues to see (ref) undue levels of profit, but Silicon Valley is moving in as well, with tech behemoth Meta set to build (ref) a 750-acre AI data center in Bessemer requiring 1.2 gigawatts of power to operate – 10 times (ref) the amount of energy used by all residences in Birmingham – and, apparently, a 4,500-acre solar farm in Stockton to supplement those energy demands. The resultant massive spike in demand for resources would’ve only thrown fuel on the fire, so to speak. So it’s a relief that Alabama Power, the PSC and Alabama’s potential future governor have the best interests of Alabamians at heart.
Perhaps it’s the cost of all that consideration that’s keeping rates high?
According to PSC filings (ref), the answer to that question is an emphatic yes.
That is, if you regard non-compliance (ref) with environmental laws as considerate behavior. If you think shielding (ref) shareholders from the burden of market volatility is considerate behavior. If it’s considerate for the utility to lock (ref) in profit on future capacity by passing that cost onto consumers – say, by signing a long-term contract to purchase the energy produced by a 4,500-acre solar farm in Stockton and freezing rates to shield themselves from potential consumer refunds created by such an arrangement. If you believe that after receiving their guaranteed return on equity at your expense and then passing the lion’s share of their tax burden onto your community, the decision-makers at Alabama Power are being courteous, then yes – it’s just the cost you pay for their consideration. They’re a business, not a charity, after all.
As things stand now, there doesn't appear to be an alternative to all of this thoughtfulness. The utility's interesting rate formulas (ref) have been rubber-stamped by the PSC for decades. Alabama lawmakers are currently trying to remove what little public accountability still exists, in fact, with a bill handing PSC elections to state leaders winding quickly through the legislature.
The Alabama Constitution still guarantees Alabamians the right to vote for their governor, (ref) though. It's an interesting field this election cycle, with Doug Jones attempting to bring actual leadership to the position (ref), while his Senatorial successor Tommy Tuberville continues to play the trump card (ref). The popular comedian Darren Knight, of 'Southern Mama' social media fame, has even thrown his hat in the ring (ref). And while Tubby seems to be completely tone-deaf on this issue, the other two candidates appear to be listening to the people's concerns. With the primaries approaching later this month, it may be time to jettison the nonsensical culture war political theater that's been en vogue the past decade and vote with your wallet, if not your conscience.
About M. I. Reynolds
M. I. Reynolds is an independent journalist, storyteller, and tech enthusiast committed to uncovering the Truth. Reynolds highlights working-class stories at the intersection of labor, politics, history, community, technology, and the arts. He entered the world of investigative community journalism after discovering that his great-grandfather, Virdie Reynolds, helped build, lead, and inspire the southern community of Fairhope, Alabama during the 1920s. His goal is to carry on the family legacy and inspire new generations of working class people through concise, intelligent storytelling.