Power Bills Going Up

Starting Jan. 1st, Alabama Power Co.
plans a 6.15 percent rate increase that's expected to boost the
annual cost of electricity for a typical residential customer by
$78.
The power company notified the Alabama Public Service Commission
about the rate increase yesterday. Unless the PSC objects, which is
not expected, the proposed rate increase will take effect Jan. 1st.
The average annual cost would rise from $1,275 to $1,353 for a
residential customer who uses 1,000 kilowatt-hours of electricity
each month. Utility officials say that's the median residential
usage -- half of residential customers use more, half use less.
The average monthly bill would rise by $6.53 for 1,000
kilowatt-hours, from $106.21 to $112.74.
Alabama Power spokeswoman Carrie Kurlander says electric rates
also would increase Jan. 1st by 6.02 percent for most businesses
and by 4.37 percent for large industrial customers.
The rate increases would boost Alabama Power's revenues by
$255.2 million next year. That includes $146.54 million to pay for
a rise in general operating expenses, such as buying supplies and
paying employees, and $108.65 million to help pay for
pollution-reduction equipment scheduled to start working this year.
Kurlander says there is no denying that the cost of business
continues to rise. She says adjustments are needed to cover those
costs.