Butler’s PSC Bill Passes Alabama House by Unanimous Vote

House Bill 475 (HB475) passed the Alabama House on Tuesday by a vote of 104 Yea to 0 Nay, with 1 Abstention. It now goes to the Alabama Senate for further consideration.

HB475 would reform how the Alabama Public Service Commission (PSC) conducts its duties, including a requirement that the PSC conduct a formal rate case hearing for electric utilities at least once every three years. The hearings would place utilities under oath and give regulators subpoena power to compel testimony and documents. It would also require the PSC to review utilities’ return on equity and align it with national averages, while limiting the types of expenses utilities could pass on to customers through electric rates. Additionally, HB475 would prohibit companies from including lobbying costs, political spending, and trade association dues in their rate calculations.

The bill's sponsor, Representative Mack Butler (R-Rainbow City), brought the bill to the floor, saying:

“As we went through this process, hearing from so many people, from media advocates, from constituents back home, I learned more about the Public Service Commission than I ever knew. I learned that, literally, just a rate hearing did not get the job done. What we need to have is a rate case hearing.

“So, in the sub we have a rate case hearing every three years. If they do not have that, it provides for impeachment of its members. It would provide that the President is the only one that can call the meetings.

“If the President does not call the meeting and advertise the meeting to the public, the President would face impeachment, and then if the members do not participate in the meeting without an excused absence, they would be subject to impeachment as well.

“And the other thing the bill does, is it counts the utility at the regional average, so they can exceed that of our bordering States.”

An amendment offered by Rep. Chip Brown (R-Hollinger’s Island) would compel the PSA to hold public hearings on any solar or wind power installation that would generate power for offsite use or sale to a third-party. This amendment was also approved by the House.

Advocacy group Energy Alabama applauded the passage of HB475 in a statement, saying, “for the first time in decades, Alabama Power customers have a real reason to celebrate. HB 475 does what Alabamians have been demanding: it requires rate hearings under oath, reduces Alabama Power’s outrageous profit margins, and bans the utility from charging customers for its lobbying and political activities. This is the kind of meaningful reform that changes bills, not just headlines.”

“For forty-four years, Alabama Power has operated without a real rate review. That ends with this bill,” the statement concluded.

HB475 has been sent to the Alabama Senate.

The full text of HB475 as engrossed may be read HERE.

The debate on HB475 may be seen on The Alabama Channel on YouTube or below: