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Groups Ask PSC to Reconsider Alabama Power’s Unprecedented Gas Expansion

Gasp and Energy Alabama have formally asked the Alabama Public Service Commission to reconsider its June decision to approve the single largest capacity increase ever proposed by Alabama Power, including including almost 1,900 MW of gas generation. We requested a rehearing to consider updated testimony in light of economic forecasts showing lessened electric demand due to the coronavirus pandemic (COVID-19).

Last year, Alabama Power filed a “Petition for a Certificate of Convenience and Necessity” with the Alabama Public Service Commission. That proposal initially sought to add nearly 2.4 gigawatts of new generating capacity — which would cost customers over $1.1 billion. Energy Alabama and Gasp, represented by the Southern Environmental Law Center, intervened in the docket to question Alabama Power’s lack of evidentiary support to build and buy such a significant amount of new gas resources.

In March, just before COVID-19 brought the world as we know it to a halt, the Alabama Public Service Commission held a series of hearings on the petition. Witnesses for Gasp and Energy Alabama exposed exposed significant flaws in Alabama Power’s planning and justification processes. After those hearings concluded, we made several key points in our proposed order filed with the Commission:

  • Alabama Power failed to produce the evidence necessary to support its request to increase electric generation capacity by almost 20%. The utility had previously asserted it wouldn’t need new generation sources until 2035.
  • Without a showing of need, Alabama Power’s request amounts to an effort to build rate base and enrich shareholders at the expense of its customers, who will pay for expensive, unnecessary generation for decades.
  • Alabama Power’s own analysis showed that the proposed solar plus battery storage projects were the cheapest options for customers.

The pandemic and subsequent economic downtown have cast even more doubt on Alabama Power’s supposed need for new capacity. In early June, we filed additional information regarding anticipated economic effects of COVID-19, arguing that the economic downturn precipitated by the pandemic called into question the magnitude and timing of Alabama Power’s claims about needing additional power sources. Alabama Power relied on outdated projections from more than two years ago, well before the economic devastation wrought by COVID-19. We argue those projections can no longer serve as the basis for a making a $1.1+ billion investment with customer dollars.

Despite all of that, the PSC in June unanimously voted to approve everything in Alabama Power’s proposal, including almost 1,900 MW of gas generation, except Alabama Power’s proposed solar plus battery storage projects. The PSC said they were not well-suited to meet Alabama Power’s reliability needs, despite the overwhelming evidence that supported their approval. However, the Commission refused to ask for supplemental information from Alabama Power as to whether its petition was still warranted.

Alabama customers already pay some of the highest electric bills nationwide. (A recent report found that people in Birmingham have the highest energy burden in the nation.) COVID-19 has only worsened the plight of customers struggling to pay monthly bills. If they want to move forward with these monumental investments, Alabama Power should not be allowed to put the entire financial burden on customers. Utility shareholders should bear the risk that the projects may become stranded assets before the end of their useful lives.

We also hope the Commission will reconsider its denial of the solar-plus-storage projects, which were the most economic options according to Alabama Power’s own analysis. That was just the latest in a long line of anti-solar decisions from the Commission. In September, the Alabama Public Service Commission dismissed our challenge against Alabama Power’s discriminatory solar charge, instead approving an increase in the charge.

By denying Alabama Power’s proposed solar-plus-battery storage projects in this docket and then approving an increase to Alabama Power’s unjust solar fee on rooftop solar customers in another, the PSC continues to deny Alabamians the benefits of clean, renewable energy like solar. Alabama has less solar capacity than other states in the sunny South, and far fewer jobs as a result of the PSC’s decisions.

Public Service Commission Sides with Alabama Power – Time to Move Forward on Renewables, Efficiency

UPDATE: This post was updated on Friday, June 12, 2020 at 12:40 Central Time to provide more context about the Public Service Commission’s vote on Tuesday and to correct an error so that the article states the proposed solar plus storage put downward pressure on customer bills.

 

Yesterday, the Alabama Public Service Commission, led by Twinkle Cavanaugh, capitulated to demands from Alabama Power to raise your utility bill in the midst of a pandemic and unprecedented economic stress.

 

The Commission voted unanimously allowing Alabama Power to:

  • Build Barry Unit 8 (a new 726-megawatt gas plant)
  • Buy Central Alabama (an existing 915-megawatt gas plant)
  • Enter into a power purchase agreement with Hog Bayou (to buy electricity from an existing 238-megawatt gas plant)
  • Acquire 200 megawatts of undetermined Demand Side Management and Distributed Energy Resources

 

The Commission did not approve the proposed solar + storage projects (400 megawatts).

 

We will be blunt. These Commissioners do not serve Alabamians. They serve Alabama Power. They serve their campaign donors. You deserve better.

 

It is has never been enough for the greedy executives like Mark Crosswhite at Alabama Power to be one of the most profitable utilities in the country on the backs of the one the poorest states in country.

 

No. They petitioned for unneeded and expensive new generation simply because they could. Their parent company (Southern Company) is reeling from years of bad decisions in Mississippi and Georgia. Alabama Power and the Alabama Commission keep on delivering shareholder value at your expense.

 

We intervened, along with Gasp, to protect Alabamians and we were represented in this case by the Southern Environmental Law Center. Alabama Power’s own data showed that solar-plus-storage was the least cost resource and would actually put DOWNWARD pressure customer bills. Not to mention the serious and significant flaws in its planning and forecasting methods. The Commission didn’t approve the cost-effective renewables.

 

Even the Alabama Attorney General’s Office had serious concerns about the request’s impact to Alabamians and wanted Alabama Power to bear some of the risk if this request didn’t deliver for consumers. Alabama Power, of course, does not take risks. It makes you take risks. It reaps the profits from your risks. The Commission didn’t blink an eye.

 

Don’t forget that advocates filed a petition to overturn Alabama Power’s solar taxes back in April of 2018! Has the Commission acted? No. But when Alabama Power demanded something, the Commission jumped.

 

Let us be as clear as we can. We strongly disagree with this Commission’s decision to saddle Alabamians with decades of costs and practically eliminate the benefits we should be enjoying from energy efficiency and renewable energy.

 

But, Energy Alabama does not participate in these issues to waste our breath. We do not exist simply to fight utility companies.

 

We want to move this state forward. We want the jobs. We want the savings. We want the cleaner air. We want the choices for consumers. All these things are possible with energy efficiency and renewable energy.

 

This is not and has never been a partisan issue. Alabamians of all stripes want more renewable energy, not less. Polling shows strong support for renewables in Alabama among conservatives AND liberals from the Saturn V in Huntsville to the Port of Mobile.

 

If the Public Service Commission is unable or incapable of handling this issue, it is incumbent upon the legislature to act. We have seen too many neighboring southern states grow massive amounts of renewable energy jobs. In light of the economic devastation from COVID-19, we will need every last one of those jobs created in Alabama and as fast as possible.

 

If you too are ready for growth rather inaction, it is time for YOU to take action.

  1. Become an Energy Alabama member – https://alcse.org/support-energy-alabama/energy-alabama-friend/
  2. Support Energy Freedom Alabama – http://energyfreedomalabama.com/

Energy Alabama and Gasp Appreciate Alabama Power’s Belabored Decision Not to Disconnect Service or Charge Late Fees During COVID-19 Crisis

BIRMINGHAM, Ala. (March 19, 2020) — On Friday, March 13, Governor Kay Ivey declared a State of Emergency as the COVID-19 pandemic made its way to Alabama. That evening, in response to this crisis, Gasp and Energy Alabama called for Alabama Power, the largest utility in the state, to put a moratorium on service disconnections and late fees until at least May 1. By last weekend, most investor-owned utilities across the country had made meaningful moves to suspend shutoffs.

Unfortunately, Alabama Power was unwilling to issue a full-throated public statement or even a clear announcement on its website about its intentions. Language matters. Instead of decisive language, Alabama Power made ambiguous statements claiming they had “no plans” to disconnect service “for those impacted by COVID-19” and, later, “customers financially affected.” 

We continued to take the company to task this week. We wrote a letter to the Public Service Commission, along with 12 other organizations, asking it to issue an emergency order suspending shutoffs and the accrual of late fees for all regulated electric, gas, water, and telecommunication utilities for all customers. 

Yesterday, it appears Alabama Power agreed to the terms we set for the people of Alabama: no disconnections, no late fees. They published an article on their company-owned website, Alabama News Center, stating that “Alabama Power has pledged not to disconnect customers or charge late fees for those affected* by the COVID-19 crisis.”

This afternoon at 4:35 p.m. Central Daylight Time, Mobile Mayor Sandy Stimpson posted to Twitter confirming that pledge and, perhaps, going even further. He said Alabama Power, Mobile Area Water & Sewer System, and Spire “will suspend all cutoffs of service for people who cannot pay their bills during #COVID19.”

It does appear that customers in jeopardy of missing a payment must still contact Alabama Power’s customer service line. On their company-owned news website, they say “customers that need our help to let us know by contacting Customer Service at alabamapower.com or 1-800-245-2244.” We still believe this is an unnecessary step and it should be removed.

We further believe Alabama Power should update its corporate website homepage to reflect the straightforward text of today’s announcement: that the company will not shut off any customers and will not charge any late fees until after the COVID-19 crisis.

This was never a political issue. Asking the largest utility company in the State of Alabama to be super clear about its intentions was and is justified to protect basic human needs during this pandemic. Calling for the Alabama Public Service Commission to issue an emergency order suspending shutoffs and late fees for ALL utilities (electric, water, sewer, telecommunication) under its jurisdiction  was and is essential to protect all Alabamians. 

Gasp and Energy Alabama are appreciative of the thousands of dedicated Alabama Power employees still going into work, day in and day out, to keep the lights on. The company would be better off if its C-suite were as reliable and clear-eyed as their workers.

*This is not just a public health crisis. It’s also an economic and social crisis. Everyone is affected.