Alabama Power To Raise Monthly Rates To Cover High Fuel Costs

TUSCALOOSA, AL — Alabama Power this week informed customers that the rising cost of fuel has prompted the utility to raise rates for customers by roughly $6 a month, beginning in August.

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"While the cost of necessities like gas and groceries has increased, Alabama Power has worked hard to keep the cost of electricity as low as possible," the company said in a press release on Wednesday. "Using diverse fuel types and sources has helped dampen the increase – which is lower than the current rate of inflation."

USA Today reported on Wednesday that inflation reached another 40-year high in June as prices increased 9.1% from this time a year ago.

Alabama Power then explained that it does not "make any money" from fuel expenses and will continue to work to keep costs low.

According to data from AAA, the average cost of a gallon of regular unleaded gas in Alabama as of the publication of this story was approximately $4.21 a gallon. While this is $0.46 below the national average, it's still nearly double the $2.82 a gallon price on the same day in 2021.

And when just considering the fleet of large trucks needed for the utility to maintain its footprint and untold miles of power lines, the year-over-year rise in fuel price does underscore a sharp rise in day-to-day costs for Alabama Power.

The utility also said its customers will receive a credit on their July bill, with the typical customer receiving a one-time credit of around $19 . The company then said the credit is due to lower than forecasted cost in 2021.

Alabama Power then said customers with questions can visit its website or contact its Customer Support Center. Payment assistance programs are also available for those who qualify.

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