Alabama Power has formally notified the Alabama Public Service Commission that it intends to hold customers’ electric rates steady for the next two years, outlining a proposal the company says would provide rate stability through 2027. The informational filing, dated Nov. 21, 2025, details a series of commitments Alabama Power is prepared to make if the Commission authorizes certain cost-management measures.
According to the filing, the company has been working with PSC staff and the Attorney General’s Office to evaluate projected costs for the 2026 and 2027 cost years. Alabama Power says maintaining the current compliance factors under Rate CNP for 2026 would avoid additional bill pressure and support what it describes as the shared goal of stability across electric service rates.
As part of the filing, the company proposes to keep the current Rate CNP, Part C, factors in place through the end of 2027 and delay the implementation of the Rate CNP, Part A, adjustment until January 2028. Rate CNP has different parts. Part C covers the costs Alabama Power pays to meet environmental rules and other government requirements, including expenses tied to emissions controls and federally required upgrades. Freezing Part C means customers would not see increases tied to those compliance expenses. Part A covers the cost of new power plants or major facilities the company has built or purchased after approval from the PSC. Delaying Part A means Alabama Power is postponing adding those new plant-related costs to customer bills.
The proposal also includes maintaining the current Rate CNP, Part B, factor through March 2028 and keeping the interim Environmental Cost Recovery factor in place through 2027. To carry out these commitments, Alabama Power says it will rely on internal cost containment but also needs Commission authorization to apply any customer refund due from the 2025 Rate RSE calculation to the Natural Disaster Reserve, which currently carries a negative balance, and to use federal nuclear production tax credits from 2025 through 2027 to offset retail cost of service.
In a statement to APR, Alabama Power said it “made an informational filing with the Alabama Public Service Commission as part of our ongoing discussions about ways to help customers manage their power bills. We know budgets are tight, and power bills are a real concern for many families and businesses. The filing outlines commitments aimed at providing more certainty and predictability around electric rates at a time when many other costs are rising. We look forward to continuing our dialogue with the Commission on an issue that matters deeply to customers across Alabama. We remain committed to our customers and the communities we live in and serve.”
The company notes that weather, fuel markets, natural disasters and other unforeseen events could affect these commitments and says it will work with the Commission on appropriate adjustments if needed. The PSC will now review the filing and determine next steps.
