PSC Reform Bill Held Over by House Committee
Rep. Mack Butler’s HB475 and substitute were carried over to allow further comments and changes to be offered
Representative Mack Butler’s (R-Rainbow City) HB475, which would radically overhaul how the Alabama Public Service Commission (PSC) operates, was heard by the House Transportation, Utilities and Infrastructure Committee on Wednesday.
HB475 as originally filed would require the PSC to hold at least one public meeting each year, and comply with Alabama’s Open Meetings Act. It would also prevent utilities from factoring lobbying, advertising, and grant costs into rate calculations — which some have said unfairly burdens customers.
“I am 62 years old. The last time the PSC had a public rate case hearing, I was still in high school,” Butler told WBRC 6. “Under my bill, (the PSC) would have subpoena power, and all the cards would be laid on the table. The utility is going to have to go under oath during this, which is going to be huge. If they can justify their record profits, so be it.” He went on to say that, “There's something clearly wrong, when we're the highest in the region, third highest in the nation, and about 40% higher than TVA.”
When Butler introduced the bill, he said, “Energy costs 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.”
During Wednesday’s Committee hearing, a number of suggestions and comments were offered, including some related to data centers. Butler did offer a substitute for the bill, but it was neither discussed nor voted upon.
Ultimately, Committee Chair Steve Clouse (R-Ozark) carried the bill over without a vote. Depending on the changes that are made, the bill could return to the Committee as early as next week.
The substitute bill offered by Rep. Butler will undoubtedly be a part of the alterations considered for HB475 over the next week. The substitute changes the required PSC meeting schedule from a yearly informational meeting to a formal rate hearing every three years. It stipulates evidentiary hearings, with utility officials under oath rather than simple public meetings. It broadens the scope of transparency on these hearings, as well as broadening the cost prohibitions imposed on the utilities, barring them from including political activity, lobbying and trade/industry association dues. Finally, the substitute prohibits utilities from earning a Return on Equity (RoE) higher than the national average—something Alabama Power currently does.
The substitute maintains the impeachment provisions for the members of the PSC if they fail to carry out their duties, and adds provisions for investigation and enforcement of prohibited cost inclusions by utilities.
The substitute for HB475 is currently unavailable for review on ALISON, but a copy was graciously provided to ALPolitics.com by Rep. Butler for use in writing this article.
As the session winds down, the urgency to pass HB475 and reform the PSC will only grow. Given recent public attention on the PSC and its operation, the failure to pass HB475 might very well have serious consequences in this election cycle.
The substitute to HB475 in PDF format is below:
