ATLANTA (AP) — A formula that helps dictate the earnings of Alabama Power is under scrutiny.
Alabama leaders created the unusual system more than 30 years ago to separate politics from utility oversight after then-Gov. George Wallace encouraged regulators to deny rate increases for the utility. Those decisions in the 1970s pushed the Southern Co. subsidiary into a financial crisis.
Now PSC Commissioner Terry Dunn, a Republican, says it's time to review the formula in formal hearings where witnesses give testimony under oath. He wants to trim the utility's earnings. Instead, the commission held informal meetings that Dunn criticized as a "dog and pony show."
Alabama Power has electricity prices that are below average. Alabama Power spokesman Ike Pigott says the formula system avoids big price shocks and is smooth for consumers.
Created: Sat, 10 Aug 2013 11:14:47 EST
Updated: Sat, 10 Aug 2013 11:14:47 EST