Just saw Alabama Power filed their rate case last week asking for a 12.8% increase. They're claiming $2.1 billion in new generation investments since the last case. Anyone else in Alabama getting calls from clients about this? My Birmingham clients are already panicking about their industrial rates going from Schedule LPL-1 to whatever new structure they're proposing.
Alabama Power filing new rate case - anyone tracking this?
Val I'm seeing the same thing here in Birmingham. The preliminary numbers show they want to restructure the demand charges on Schedule TOU-GSD completely. One of my manufacturing clients is looking at potentially $40K more per year just on the demand side. The fuel adjustment clause changes are concerning too - they're proposing to recover coal ash remediation costs through the FAC now.
We're watching this closely from Tennessee since TVA has been hinting at similar moves. Alabama Power's filing mentions new EPA compliance costs of $800 million - that's going to set a precedent for every southeastern utility. The demand charge restructuring on their large general service schedules could affect how other utilities approach time-of-use pricing.
Just finished reviewing their direct testimony. Georgia Power is going to be watching this case very carefully since they have similar coal plants and EPA obligations. The proposed Schedule D-2 changes would increase our Savannah clients' costs by about 8% even before the base rate increase. Anyone know when the PSC hearings are scheduled to start?
Hearings start October 15th according to the PSC website. Brenda you're right about the TOU-GSD changes being brutal. I've got three clients considering shifting production schedules just to avoid the new peak demand windows they're proposing. The 4-7 PM peak period extension is going to kill manufacturing operations that run second shift.
Similar situation developing with Ameren Missouri here in St. Louis. They're citing Alabama Power's environmental compliance costs as justification for their upcoming filing. These southeastern utilities are basically setting the playbook for the rest of us. The coal ash provision alone is going to add millions to every utility's rate base.
Update: Just got word from the PSC that intervention deadline is August 30th. Several large industrials are planning to intervene, including the paper mills and steel operations. The proposed increase to Schedule LPS-1 would add nearly $2 million annually to one of my clients' electric costs. This is going to be a fight.
Brenda keep us posted on how that intervention goes. Georgia Power is supposed to file their next case early 2013 and they'll definitely be watching the Alabama precedent. The environmental cost recovery mechanism they're proposing could become the new standard across the southeast. My Georgia clients are already asking about potential rate shock.