How We Operate - Regulation | Alabama Power

How We Operate

Regulation

As a regulated, investor-owned electric utility, Alabama Power is overseen by a number of agencies. We comply with all laws, regulations and industry standards. Large amounts of company information are available publicly and can be accessed through this page.

 

Public Service Commission

The Public Service Commission (PSC) is responsible for regulating the retail operations of public utilities serving customers in Alabama. Among other things, the PSC regulates the price of electricity and the quality and value of electric service provided by Alabama Power.

The PSC holds public meetings monthly at its offices in Montgomery. During those meetings, the PSC and its staff discuss information about the operations of the regulated utilities, including Alabama Power. Plus, the PSC holds an annual public meeting at which Alabama Power provides financial projections related to its rates and environmental expenses for the upcoming year. During this annual meeting, customers, the Attorney General (the consumer advocate for the citizens of Alabama) and other interested parties have the opportunity to ask questions about the company’s operations and finances.

 

Public information

Alabama Power makes hundreds of public information submissions each year concerning its finances, operations and plans for the future. Here are some of the things we share with public agencies:

 

Rate information: about 30 filings each year

These filings include annually required documents associated with the company’s base rate mechanisms; filings of new or modified rates; and filings relating to the company’s fuel costs.

 

Environmental compliance plan: annually

Each year, Alabama Power submits a preliminary and final plan to the PSC that includes information on environmental regulations and legislation applicable to the company, the company’s plans for compliance, and the estimated costs of these compliance activities for the upcoming five years.

 

Environmental agency submissions: more than 200 each year

Alabama Power submits analytical data required by various environmental permits necessary for system operations. These include information from water samples, emission monitoring, and water withdrawal. Alabama Power also submits regular compliance reports to help regulators assess ongoing compliance with environmental regulations.

 

Resource planning information: integrated resource plan – triennially

This plan reflects the optimal mix of supply-side and demand-side resources needed to meet the expected electrical requirements of its customers, consistent with the Company’s duties and obligations to the public as a regulated public utility. Generally speaking, the integrated resource plan informs the Company as to when a reliability based resource addition appears to be needed and what the optimal mix of resources will be to meet customers’ future load requirements.

 

Integrated Resource Plan - every three years

Alabama Power submits avoided cost projections in multiple ways. We annually provide updated avoided cost data to the PSC for purposes of determining the price that will be paid for the sale of alternate energy to certain customers under Rate PAE. Every other year we also submit projected estimated avoided cost data in accordance with the requirements of the Public Utility Regulatory Policies Act of 1978 (PURPA).

 

Financial statements and reports: about 40 each year

Alabama Power makes periodic filings which reflect various information relating to the Company’s operations and financial performance, including details regarding revenues and expenses.

 

Operations: more than 50 each year

The operational data supplied to regulators includes, for certain periods of time, the amount of electricity generated; fuel consumed; fossil fuel stocks; fuel deliveries; fuel supplier information, and specific qualities of the fuel purchased, such as the thermal concentration (Btu) and impurities (for example, the sulfur content of coal used to fuel a steam plant).