PSC Reform Bill Filed After Commission Governance Fight

State Representative Mack Butler’s new bill would mandate annual Public Service Commission (PSC) hearings and bar certain utility costs from rate setting after conflict over bills changing PSC elections

In response to mounting criticism of how Alabama’s utilities are regulated, Rep. Butler (R-Rainbow City) on Thursday introduced House Bill 475 (HB475), a proposal to increase transparency at the PSC and tighten rules on what costs electric utilities can pass through to consumers.

Butler took to social media to explain the bill:

“This morning I filed legislation requiring the Alabama Public Service Commission to hold annual hearings. This bill would also prohibit an electric utility from including costs incurred by the utility related to giving grants, lobbying, and advertising to be included in the determination for rates or service regulations. Violating this act would make commissioners subject to impeachment. Energy cost are too high and are hurting families all over our state as well as hurting business and industrial recruitment. My job as a representative is to represent my district and I have heard from so many of you on this issue. HB 475 is the bill number if you want to follow and it should be on the website this evening.”

The measure would require the PSC to hold at least one public meeting each year that complies with the Open Meetings Act, giving residents more voice in discussions about utility rates and service issues. It also seeks to stop electric companies from factoring lobbying, advertising, and grant costs into rate calculations — an expense Butler and supporters say unfairly burdens customers.

HB 475 comes amid a broader debate in Montgomery over how the PSC should operate. Earlier this month, lawmakers considered House Bill 392 and Senate Bill 268, companion proposals that would have ended elections for PSC commissioners and shifted selection to political appointees, chosen by the Governor, House Speaker, and Senate President Pro Tempore.

That plan drew sharp criticism from Republicans and grassroots groups who said it would diminish public accountability. The Alabama Republican Assembly passed a resolution urging lawmakers to oppose the bills, arguing they “would phase out these elections” and replace them with appointments that could be less responsive to voters’ concerns about utility oversight.

Tensions around PSC governance peaked when the appointment bill moved through committee but was ultimately pulled from the House calendar amid uncertainty about Senate support and rising public concern. Critics, including some Republican lawmakers, argued the discussion moved too quickly and did not sufficiently address the core issue of high energy costs.

Butler’s bill avoids governance restructuring. Instead, it focuses on annual transparency and consumer protections, a nod to constituents frustrated by both high utility bills and the recent legislative tussle over the PSC’s future. By tying public meetings and rate-setting limits directly to law, HB475 would give ratepayers a more direct role in oversight without eliminating the commission’s elected structure.

HB475 was referred to the House Transportation, Utilities and Infrastructure Committee, where it awaits further action. 

HB475 as filed may be read HERE.