Alabama Power Scales Back Rate Hike Request

MONTGOMERY, Ala. (AP) - Alabama Power Co. has agreed to scale
back its rate hike request after negotiations with its largest
customers.
Alabama Power unveiled the agreement Tuesday at a hearing before
the Alabama Public Service Commission. Alabama Power had been
seeking a 14.6 percent rate hike for residential customers but is
now dropping that to 8.2 percent.
Industrial customers of the state's largest utility had been
looking at a rate hike of nearly 25 percent but the new agreement
would reduce that to 14 percent.
The reduction comes because Alabama Power will take longer to
recover its fuel cost than originally proposed. The increase is due
to the utility paying more for fuel than it is getting back in
rates.
The agreement is subject to approval by the three members of the
Public Service Commission.

(Copyright 2008 by The Associated Press. All Rights Reserved.)