The Alabama Public Service Commission has asked Alabama Power to stop passing advertising costs on to its customers. The request, which the company is not required to follow, was made at a Tuesday meeting held on election day. The motion was not on the meeting agenda. Commissioners Oden and Beeker voted in favor, and Commissioner Almond made the motion.
Under current rules, the utility may bill customers for half of its non-safety advertising costs. State law will bar ad costs from appearing on bills, but that prohibition does not take effect until 2029. Until then, the commission's request is voluntary, and Alabama Power has not publicly responded to it.
The scale of the spending is significant. According to federal filings with the Federal Energy Regulatory Commission, Alabama Power spent more than $6 million on general advertising last year. That works out to roughly $4 per customer. The reporting did not establish how much of that spending has reached customers' bills, leaving the total amount passed through to ratepayers unclear.
The company's recent advertising has promoted a rate freeze it announced late last year. Alabama Power serves about two-thirds of the state, which means the question of who pays for its promotional campaigns affects a large share of Alabama households. Daniel Tait of the advocacy group Energy Alabama praised the commission's move, a reaction that reflects the consumer-side view of the debate.
The vote comes ahead of a major change in the commission itself. In January, the Public Service Commission expands from three members to seven. Gov. Kay Ivey has appointed four new commissioners, including two who will be the first Black members of the body. Oden and Beeker lost their Republican primaries and leave the commission in January. Jim Zeigler, who will return after 48 years, is also returning to the panel.
The composition of the commission is also tied to the state's new energy leadership structure. Gov.-elect Tommy Tuberville will select Alabama's first secretary of energy, who will set the commission's agenda. Overruling the secretary requires five of the seven commissioners to vote together. Tuberville has not yet named his pick. The only statutory requirement for the post is experience in utility or energy policy.
For ratepayers, the practical stakes are tied to how the rules play out over the next several years. Until the 2029 prohibition takes effect, customers can continue to be charged for half of non-safety advertising, and the commission's request does not change that legal baseline. The commission's vote therefore signals a preference rather than a binding change, and the outcome will depend on whether the company chooses to comply voluntarily.
The shift in the commission's makeup means the regulatory landscape will look different when the new members take their seats. Advocates and officials alike will be watching how the expanded panel and the incoming energy secretary approach utility spending, rate design and the treatment of promotional costs in the months ahead.