The Alabama Senate on Thursday passed legislation that would restructure the state’s Public Service Commission, expand the number of elected commissioners and prohibit power rate increases until 2029.
Senate Bill 360, sponsored by Senator Clyde Chambliss, R-Prattville, was approved on a 32-0 vote after dialogue about electricity rates, representation on the commission and how the transition to a larger regulatory body would work.
Chambliss described the measure as the “Power to the People” Act, saying it is aimed at giving Alabamians more control over utility regulation.
“The people of Alabama are frustrated,” said Chambliss. “They’re frustrated that our power rates have increased faster than most of our neighboring states and, in fact, most of the states in the United States.”
Chambliss said Alabama once had some of the lowest electricity rates in the country but has slipped over the past two decades. He cited data showing the state had the 13th lowest power rates nationally in 2000, but ranked 28th by 2024.
“In 2000, our rates were 82 percent of the national average,” said Chambliss. “Now our rates are 92 percent of the national average. We’re heading in the wrong direction.”
The legislation would expand the Public Service Commission from three members, a president and two commissioners, to seven members, elected from Alabama’s seven congressional districts. That change would provide more regional representation and make commissioners more accessible to residents.
Senator Bobby Singleton, D-Greensboro, said the new structure would allow residents across the state to feel they have a direct voice on the commission.
“This would give everybody in the state of Alabama… a voice that they can reach out to on the Public Service Commission and be able to get questions answered just as they would their U.S. congressman,” said Singleton.
Under the bill, the transition to seven would occur gradually. By July 15, the governor would appoint four additional commissioners from a list of nominees submitted by the lieutenant governor, the Senate president pro tem and the House speaker.
Two of those appointments would be for two-year terms and two would serve four-year terms, allowing elections to begin for the new district-based seats starting in 2028 and 2030. Eventually all seven commissioners would be elected on staggered six-year terms to maintain continuity on the commission.
Chambliss said the staggered terms are designed to prevent the entire board from turning over at once while still allowing voters to elect the full commission over time.
“We want them staggered, two one cycle, three the next, two the next, so that you have continuity of knowledge and information and you don’t have a wholesale change,” said Chambliss.
A key provision in the bill would prohibit electric utilities from raising rates until 2029, though the commission would still be able to lower rates during that period.
“The reason we have outlawed rate increases until 2029 is that is when we’ll have a majority of elected people on the board,” said Chambliss.
The bill also includes several restrictions on utilities. It would prohibit utilities from participating in campaigns for Public Service Commission candidates and prevent certain expenses like lobbying costs, grants and some advertising from being included in rate calculations.
Another provision would create a new position called the Secretary of Energy, an appointed administrative leader who would oversee staff and operations but would not have a vote on regulatory decisions.
Singleton initially raised concerns about placing an appointed official in a role above elected commissioners, but said the bill’s limits on the position helped address those concerns.
During the debate, the Senate adopted an amendment from Singleton intended to protect existing Public Service Commission employees during the transition. The amendment ensures current staff are not removed from their positions as the commission’s structure changes.
Singleton said the goal was to preserve institutional knowledge within the agency.
“These people have been working at the PSC for 20 or 25 years. We don’t want to put them in jeopardy of just wiping everybody out and starting all over new without anyone with institutional knowledge,” said Singleton.
Chambliss agreed with the change and supported the amendment, saying it aligned with the bill’s intent.
“They have the institutional knowledge that will help educate these new board members and make good decisions,” he said.
Supporters also emphasized that the legislation does not eliminate voting rights for Public Service Commission members, a concern that Chambliss said had been raised by some critics.
The legislation now moves to the House for consideration.
