Alabama Power will issue refunds on upcoming bills

MONTGOMERY, Al.
Customers of Alabama Power Co. will likely have a refund of a few dollars on an upcoming bill.
All three members of the Public Service Commission said Tuesday they will vote on Dec. 6 for a refund of $16.4 million. Alabama Power got the money from a successful suit against the U.S. Department of Energy.
Commissioners said the amount of the refund will vary according to electrical use. It will show up as a credit on a future bill. The potential amounts range from $4.02 for a residential customer who uses 1,000 kilowatt hours a month to $6.04 for 1,500 kilowatt hours and $8.05 for 2,000 kilowatt hours.
Commissioner Twinkle Andress Cavanaugh said she asked to have the refund issue put on next week's agenda.
"I'm pushing for Alabama Power customers to realize these rebates as soon as possible, and while it won't make a big dent in most household budgets, in this economy, every dollar counts," Cavanaugh said.
The money comes from Alabama Power winning a breach of contract lawsuit. Two federal courts ruled the Department of Energy did not provide a storage place for spent nuclear fuel like federal law required it to do by 1998, and it must reimburse Alabama Power $17 million that the utility spent to build and operate storage units at the Joseph Farley Nuclear Power Plant near Dothan between 1998 and 2004.
Those costs were built into Alabama Power's rates, which is why the PSC is looking at a refund. The refund will be slightly less than the $17 million because court costs and administrative expenses were removed, officials said.
"Alabama Power customers have been paying for a service the federal government failed to provide. We need to give ratepayers their money back," Commission President Lucy Baxley said.
"This money belongs to Alabama Power customers, and I fully support giving it back to them," Commissioner Terry Dunn said.
An assistant to Cavanaugh said the refund will apply to current customers and it will likely show up on March bills.