Households getting electricity from Alabama Power Co. are using 6%
less than five years ago. But their monthly power bills still have
increased by an average of 8%, partly because of a lucrative rate
agreement that the utility brokered with state regulators 30 years
“an absurd tax upon the rest of their fellow-citizens”
The deal allows Alabama Power, the state’s largest electric utility,
to adjust its rates annually to maintain a return on equity, a
measure of profit, of 13% to 14.5%. Now it is coming under fire from
consumer advocates and one state utility commissioner, who argue
that the utility’s profit levels are too high.
collects $3 million in tax revenues annually
and pays about $368,000 in staff salaries and benefits,
plus $125,000 in legal and accounting costs, as well as
other items in general operations.
This is according to VLCIA’s
Operating Budget (FYE 30 June 2011),
open records request in February 2011,
and given to LAKE, the Lowndes Area Knowledge Exchange.
Look for yourself;
here it is
in PDF and two different single-page forms.