McNeil Files Federal Lawsuit Over Alabama PSC Overhaul

Sheila McNeil, Democratic candidate for the Alabama Public Service Commission (PSC), Place 2, has filed a federal lawsuit challenging Alabama’s newly enacted HB 475, arguing the law unlawfully changes the structure of the Commission in the middle of an active election cycle.

The lawsuit, filed in the U.S. District Court for the Middle District of Alabama, names Governor Kay Ivey and Attorney General Steve Marshall as defendants. McNeil is seeking a temporary restraining order and preliminary injunction to block implementation of the law before key summer appointment deadlines take effect.

HB 475, signed by Ivey in early April, expands the Alabama Public Service Commission from three Statewide elected members to seven district-based seats. The law also allows the governor to appoint four interim Commissioners before the November 2026 election and creates a new Secretary of Energy position with broad administrative control over the Commission.

McNeil’s lawsuit argues the changes violate the Equal Protection Clause, the Voting Rights Act, and due process protections under the U.S. Constitution.

“I opposed every version of this restructuring — SB 268, HB 392, SB 360, and the final HB 475,” McNeil said.

“When the Legislature enacted this bill anyway, without any process to protect candidates already in the field, filing suit became the only path to safeguard the rights of voters and candidates alike. With all of the political maneuvering to restructure the Commission, there is nothing in this law that will remotely reduce utility bills.”

According to the complaint, McNeil qualified as a Democratic candidate during the Alabama Democratic Party’s Jan. 5–23 filing window, paid her qualifying fee on Jan. 20, and publicly launched her campaign during a Jan. 22 press conference in Montgomery. The lawsuit states she has since campaigned in at least fourteen counties across Alabama.

The filing argues HB 475 abruptly abolished the at-large Statewide election structure after candidates had already entered the race and after absentee voting activity had begun.

McNeil’s attorneys contend the law creates immediate and irreversible harm because legislative leaders must submit appointment lists to the governor by June 1, while Ivey must appoint four interim Commissioners by July 15.

The lawsuit also claims the new district system mirrors Alabama’s disputed congressional map and could dilute minority voting strength in violation of Section 2 of the Voting Rights Act.

The legislation itself became controversial during the final days of the 2026 legislative session. HB 475 originally focused on utility rate procedures before the Senate replaced much of the bill with broader PSC restructuring language. Several lawmakers, including the bill’s original House sponsor, Rep. Mack Butler (R-Rainbow City) later opposed the final version.

Governor Ivey defended the measure after signing it into law.

“The Alabama Legislature passed HB 475 to put a freeze on electric rates and to give the people of Alabama broader representation on the Public Service Commission,” Ivey said following the bill’s signing.

Supporters of the law have argued the changes would modernize utility oversight and broaden regional representation on the Commission. Critics, however, have raised concerns about the Governor’s expanded authority and the speed with which the legislation moved through the State House.

McNeil’s lawsuit asks the federal court to preserve the existing at-large PSC election structure through the 2026 election cycle and block all interim appointments under the new law until the legal challenge is resolved.

McNeil is represented by Birmingham attorney Richard A. Rice of The Rice Firm, LLC.

The Alabama Public Service Commission regulates utilities across the state, including electric, gas, water, and telecommunications providers. HB 475 marks the largest restructuring of the agency in decades.