In a state where residential customers pay some of the highest electricity bills in the country, AARP is calling on the Alabama Public Service Commission to conduct formal hearings on profits made by the state’s biggest utilities.
In 1982 the commission set up a formula to adjust utility rates based on return on equity (profits generated from stockholders’ investments). If return on equity fell below a certain range, the commission could approve a rate increase to make up the difference. If return on equity exceeded the allowable range, the commission could cut utility rates.
AARP and other consumer advocacy groups say that with a major drop in interest rates since 1982, it’s time to reset the formula. To join AARP Alabama’s utility watchdog effort, go to aarp.org/al or call 866-542-8167 toll-free.
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