Alabama Regulators Ask Power Company to Halt Ad Billing
The Alabama Public Service Commission wants Alabama Power to stop charging customers for advertising costs before a state ban takes effect in 2029.
Updated on Nov. 5, 2026 in Utilities
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The Alabama Public Service Commission voted 3-0 to request that Alabama Power exclude advertising expenses from retail rates until after December 31, 2028. The request comes as state law separately bars the utility from charging customers for advertising starting in 2029.
Why it matters
Alabama Power serves about two-thirds of the state and spent more than $6 million on general advertising last year, roughly $4 per customer. The move follows criticism of rising electricity prices and a rate-freeze advertising campaign launched by the company.
Alabama Power spent more than $6 million on general advertising last year, roughly $4 per customer, according to FERC filings. Customers may currently be billed for half of non-public safety advertising costs, and it is unresolved whether the company will consent to the requested exclusion.
The players
Alabama Power
Alabama Power is the largest electricity provider in Alabama, serving about two-thirds of the state's customers.
Alabama Public Service Commission
The Alabama Public Service Commission is the state body that regulates utility rates and services in Alabama.
Cynthia Lee Almond
Cynthia Lee Almond is the president of the Alabama Public Service Commission who made the motion for the advertising cost exclusion.
The details
The commission's request was made through a motion by PSC President Cynthia Lee Almond that was not on the meeting agenda. The motion asks Alabama Power to consent to the exclusion, with the interim measure reflected in its Rate Stabilization and Equalization filings for 2027 and 2028.
Timeline
Earlier in 2026: State law banning advertising charges passed.
Late 2025: Alabama Power announced a rate freeze and launched television commercials touting it.
November 3, 2026: The PSC voted 3-0 to request the advertising cost exclusion.
January 2027: The PSC expands from three members to seven.
January 1, 2029: The state law barring advertising charges takes effect.
Market Landscape
The 2026 Alabama law barring advertising charges from 2029 sets the statutory baseline for this dispute. The commission's request asks Alabama Power to act roughly three years ahead of that statutory deadline, while the company's rate-freeze advertising campaign is under scrutiny.
Customers of Alabama Power could see advertising costs removed from their bills if the company consents to the commission's request. Under current rules, customers may be billed for half of non-public safety advertising costs.
The takeaway
Utility advertising costs are a direct line item in customer bills, and state rules on what ratepayers fund can change the amount they pay. Readers should watch whether Alabama Power responds to the commission's request before the 2027 rate filings.
What happens next
The Alabama Public Service Commission will expand to seven members in January 2027, and the state's advertising charge ban takes effect January 1, 2029.
Further reading
For more on how utility costs are set, see the Utilities section.
Source note: This article includes information reported by InsideClimate News.
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