HUNTSVILLE, AL — Energy Alabama is calling for a public hearing to help Alabama Power customers understand how the company plans to spend more than a quarter of a billion dollars in savings from the recent federal tax overhaul.
As a result of recent changes to the federal tax code, Alabama Power has a tax adjustment tariff that will return approximately $257 million to the company in reduced taxes. Some of Alabama Power’s plans to distribute this money to customers have been outlined in a recent Form 8-K filing with the U.S. Securities and Exchange Commission. The Alabama Public Service Commission is scheduled to vote tomorrow, May 1, 2018, less than two weeks from its initial filing with the SEC.
However, Energy Alabama has serious concerns about this closed-door process:
- An 8-K is required for matters about which Alabama Power must inform its investors. It has done so. However, Alabama Power has not informed the public, or its customers, of its plans. Is Alabama Power fulfilling its obligations to Wall Street but not to regular Alabamians?
- The 8-K states that Alabama Power plans to return $50 million to customers and use the rest for other purposes, perhaps to improve their borrowing capacity and recoup under-recovered fuel costs. From these filings, we cannot tell exactly what Alabama Power is attempting to do with all of this money. Their plans may be reasonable, but this lack of transparency underscores the need for a public hearing to show how customers are helped and not harmed.
- To this end, Energy Alabama is calling for a public hearing so the public can understand exactly what is going to happen with their money AND have a say in the matter. As it stands now, decisions are being made behind closed doors with less than two weeks of notice.
- Energy Alabama is also calling for the Alabama Attorney General’s office to act as a true customer advocate and ensure the best outcome on the behalf of Alabama Power customers. What role, if any, did the AG’s office play in the decision-making?
- Georgia Power and the Georgia Public Service Commission have already worked out exactly how much money an average customer will save. Both have been forthcoming with this information. We call on Alabama Power, Georgia Power’s sister company, to do the same.
- Energy Alabama is not the only one calling for a public hearing. We echo the complaint filed by Ms. Joyce Lanning.
A previous closed-door process led to the unjust and arbitrary solar tax reported by AL.com on Friday. Thankfully, that decision is now being challenged.
For more information about this topic, please contact Daniel Tait by phone at (256) 812-1431, or by email at email@example.com.