Updated: March 2026
Commercial rate guide for Alabama Power — Central and southern Alabama, serving roughly 1.5 million customers across the lower two-thirds of the state including Birmingham, Montgomery, and Mobile metro areas
Demand-based rate schedules for commercial accounts with separate energy and demand charges. Rate LPL for large power and light customers. Time-of-day optional rates available with on-peak hours 2-7 PM weekdays.
Rising
4.8% base rate increase effective April 2026, approved by Alabama PSC as part of
4.8% base rate increase effective April 2026, approved by Alabama PSC as part of Rate RSE mechanism
Property managers with Alabama Power accounts frequently encounter these billing challenges:
Fuel cost adjustment clauses causing month-to-month bill volatility
Environmental compliance cost riders adding unexpected charges
Demand ratchet provisions on Rate LPL accounts
Late payment penalties applied before bills are received
The utility is the sole provider in this service territory.
Alabama is a fully regulated state. Alabama Power is a vertically integrated subsidiary of Southern Company providing generation, transmission, and distribution.
Annual Rate Stabilization and Equalization filing expected Q3 2026 with projected 2-3% adjustment
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