What is Alabama Power?
Alabama Power is an investor-owned electric utility and subsidiary of Southern Company that generates, transmits and distributes electricity to the public across a large section of Alabama. It operates as a regulated utility, with its retail rates and services overseen by the Alabama Public Service Commission, and provides electricity to roughly 1.5 million customers across the state.
The company maintains an extensive grid with tens of thousands of miles of power lines serving about 44,500 square miles, and it emphasizes safe, dependable power as part of its corporate mission. Its resource mix spans coal, natural gas, nuclear, hydroelectric and renewable generation, coordinated with other Southern Company operating utilities to ensure reliable, cost-effective service.
Alabama Power promotes a broader role beyond delivering electricity, highlighting community involvement, energy-saving programs and support for education and local initiatives as part of its long-standing presence in the state.
Rates, Power Bills and Customer Concerns
In late 2025, Alabama Power announced a multi-year commitment to keep all components of its regulated retail electric rates steady through 2027, following discussions with the Alabama Public Service Commission. The company describes this as a rate stability plan designed to give households and businesses more certainty about their power costs while it continues to invest in grid reliability and modernization.
Company leaders say Alabama Power has cut operating expenses by about $100 million since 2017, helping offset rising equipment costs for transformers, poles and wires, and enabling the rate freeze without planned increases. Despite this pledge, many customers still report high bills, especially during extreme hot or cold weather, driving scrutiny of how usage, fuel charges, fees and riders flow into final monthly statements.
Consumer advocates and some local officials question whether Alabama Power’s existing rate level is already relatively high compared with other utilities in the Southeast, and they continue pressing for transparency around bill components and protections for low-income customers. In parallel, the company promotes tools, payment options and efficiency programs aimed at helping customers manage consumption and avoid bill shocks.
Reliability, Outages and Economic Impact
Alabama Power consistently highlights a long-term record of delivering more than 99% service reliability, supported by a large network of transmission and distribution lines, substations and control systems. The utility invests in smart grid technologies, automation and storm-hardened infrastructure intended to reduce outage frequency and duration, particularly during severe weather that can bring down lines and damage equipment.
During storms or extreme conditions, customers monitor real-time outage maps and restoration updates to see where service is disrupted and how quickly crews respond. These events keep public attention on the company’s preparedness, restoration speed and communication, and they inform ongoing debates about how much investment in resilience is needed under the current rate plan.
Beyond reliability, Alabama Power plays a significant role in Alabama’s economy and has been recognized as a top utility for economic development by industry observers. The company works with state and local partners to attract and retain businesses, support industrial growth and tailor energy solutions for large commercial customers, while its Integrated Resource Plan sets out how future generation and grid investments are expected to support both reliability and economic growth over the coming decades.