Sen. Clyde Chambliss Says New Version of PSC Reform Legislation Will Reduce Rates While Expanding the Public’s Voice

From the Alabama Statehouse

State Sen. Clyde Chambliss (R - Prattville) said a new version of Public Service Commission reform legislation that was passed by the Senate Fiscal Responsibility and Economic Development Committee on Tuesday combines the best elements of previously introduced Senate and House measures and includes strong protections for consumers and voters.

“This legislation marries the best elements of the previous Senate and House versions, ensures that regulated utilities are forced to justify every dime of rates they charge to consumers, and allows Alabamians a louder voice in electing their representatives on the Public Service Commission,” Chambliss said. “It also outlaws rate increases until 2029 while still allowing rate reductions, and a provision automatically triggers annual review hearings to keep utility rates in check.”

The substitute version of HB475 being carried by Chambliss mandates that regulated utilities must undergo annual rate review hearings, provides the PSC with subpoena power, and requires sworn testimony that is given under oath with the threat of perjury charges for deception.

Special rate review hearings may also be convened at will if the newly-created secretary of energy or a majority of the commission request them.

A provision in the bill outlaws rate increases for the next three years — until a majority of the board is elected — but it continues to allow rate reductions to be voted upon and implemented at any time.

The measure adds four new seats to the commission and requires all seven posts to be elected by congressional district, which is similar to the election model currently used for the Alabama State Board of Education. 

In order to create staggered terms, four commissioners would initially be appointed by the governor in July of 2026, two of whom would serve two-year terms and two of whom would serve four year terms. Commissioners would run for office according to congressional districts beginning in November of 2028 and serve six year terms upon election.

A new cabinet-level secretary of energy, which was recently suggested by Republican gubernatorial candidate Coach Tommy Tuberville, would be created under the bill, and that position would be responsible for overseeing the administrative functions of the commission.

In determining rates, regulated utilities are forbidden from passing certain expenses on to consumers, including the costs of employing lobbyists on behalf of the utility, the costs of advertising the utility except for public safety messages, or the costs of grants it provides.

Regulated utilities are also prohibited from contributing to candidates running for Public Service Commission seats.

Members of the Public Service Commission, their spouses and immediate family members, the Secretary of Energy, and all employees of the commission are forbidden from providing any paid service to public utilities, as well.

The substitute to HB475 as offered by Sen. Givhan and voted out of Committee may be found at THIS LINK.