Mobile shipyard client complaining about Alabama Power rates hitting $0.11/kWh on rate schedule LPL. They're asking about competitive alternatives. I know Alabama isn't deregulated but are there any options for large industrial customers? Demand averaging 2,800 kW.
Alabama Power vs competitive - any options in Mobile?
Kevin - Alabama has no retail competition at all. Alabama Power has a regulated monopoly. Only option would be self-generation like solar or cogeneration if the facility can support it. Otherwise they're stuck with Alabama Power rates.
John is correct. Same situation in most of the Southeast. Georgia Power, Duke Energy Carolinas, TVA territories all have monopolies. The shipyard might qualify for special industrial rates if they meet certain criteria. Check Alabama Power's large industrial rate schedules.
Carol's suggestion about industrial rates is good. Had similar situation in Idaho with Idaho Power. Large customer got moved from standard commercial rate to special industrial rate and saved $15,000 annually. Worth investigating rate class options.
Being in Alabama myself, I can confirm there are special industrial rates available. Alabama Power has rate schedules like ILP and IHP for large manufacturers. The shipyard would need to meet minimum demand and usage requirements. Contact Alabama Power directly about industrial rate eligibility.
Thanks Zach! Called Alabama Power and they're reviewing the account for industrial rate eligibility. Minimum is 3,000 kW demand but they said shipyard operations might qualify for special consideration. Should know in 2-3 weeks.
Even in regulated monopoly territories, always verify customers are on the most favorable rate schedule. Many utilities have special industrial, agricultural, or large customer rates that can provide significant savings without requiring market competition.