Alabama Power Stops Charging Customers for Ads
The utility will drop most advertising costs from rates after the state's regulator approved an interim change.
Updated on Nov. 11, 2026 in Utilities
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Alabama Power said it will stop charging customers for advertising costs, except those tied to public safety, after the Alabama Public Service Commission requested the change. The commission unanimously approved interim implementation of a state law requiring the utility to stop using customer money for advertising by 2029.
Why it matters
Residential electricity in Alabama already averages 16.33 cents per kilowatt-hour, higher than neighboring Tennessee and Mississippi, so the removal of advertising costs from rates affects what households pay each month. The move follows the spring passage of HB 475, which expanded the commission and changed how rate hearings can be called.
Alabama's average residential rate of 16.33 cents per kilowatt-hour exceeds the 13.42 cents in Tennessee and 14.43 cents in Mississippi, according to U.S. Energy Information Administration figures. Current commission orders already exclude half of advertising costs from rates, but the dollar amount still being charged to customers has not been disclosed.
The players
Alabama Power
The Alabama-based electric utility serving residential and commercial customers across the state, which said it will follow the commission's direction on advertising costs.
Alabama Public Service Commission
The state agency that regulates utility rates in Alabama and approved the interim advertising cost change.
Cynthia Almond
The president of the Alabama Public Service Commission, who moved to implement the advertising requirement early at the Nov. 3 meeting.
Kay Ivey
The Governor of Alabama, who signed HB 475 into law in April, expanding commission membership and creating a secretary of energy position.
The details
Alabama Power said it will remove advertising expenses from customer rates in 2027 and 2028, while keeping advertising tied to electrical safety, energy efficiency, storm preparedness and scam prevention. PSC President Cynthia Almond moved to implement the 2029 requirement on an interim basis, and the motion passed unanimously at the Nov. 3 meeting.
Timeline
April 2026: Gov. Kay Ivey signed HB 475 into law.
November 3, 2026: The commission unanimously approved interim implementation of the advertising cost change.
2027: Alabama Power plans to begin removing advertising expenses from rates.
January 1, 2029: The state law requires the utility to stop using customer money for advertising.
Market Landscape
The change is an early implementation of HB 475, the 2026 Alabama law that expanded Public Service Commission membership and set a 2029 deadline for ending the use of customer money on advertising. It places Alabama Power's rate structure under the tighter oversight that the law created.
Customers should see advertising costs removed from future bills as the rate changes take effect in 2027 and 2028, with safety and storm-related messages still included. Households already paying above regional averages may find the change matters most for monthly budgets.
The takeaway
Watch for the commission's written order, since it will set the exact timing and scope of the advertising cost removal. Compare future bills against current rates to see how much of the change reaches your household.
What happens next
Alabama Power plans to remove advertising expenses from customer rates in 2027 and 2028, and the commission's written order is expected to be issued after the Nov. 3 vote.
Further reading
For more on how state regulators set power bills, see Utilities coverage across Alabama.
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