MONTGOMERY, Ala. — A sweeping rewrite of how Alabama regulates utilities is now law, after lawmakers approved a major overhaul of the Alabama Public Service Commission and Gov. Kay Ivey signed the measure.
The legislation, House Bill 475 sponsored by Rep. Mack Butler, R-Rainbow City, expands the current three-member commission to seven members elected by congressional district and creates a new cabinet-level energy secretary, appointed by the governor, to help oversee the agency’s operations.
Supporters say the changes will increase transparency and could help lower energy costs for consumers across the state. The law also places a temporary freeze on rate increases and adds new public meetings and formal hearings under oath to examine utility practices.
But the bill’s path through the Legislature included significant changes and some disagreement.
Butler’s original proposal centered on requiring full rate case hearings every three years — detailed reviews of utility finances that he argued would help keep Alabama’s power rates competitive.
That requirement was removed in the Senate, prompting concerns from Democrats during a committee hearing earlier in the week.
“You had Democrats and Republicans that voted for House Bill 475, but then you put together a committee of folks… in the absence of the other side of folks that actually supported the original House Bill 475,” said Sen. Merika Coleman, D-Birmingham.
Republicans defended the change, arguing that mandatory hearings could drive up costs.
“A formal rate case costs significant money… which also adds to the rate,” said Sen. Clyde Chambliss, R-Prattville, who carried the bill in the Senate.
Instead, the final version allows either the commission or the governor-appointed energy secretary to initiate formal rate hearings when needed, while requiring at least one annual public meeting with utility representatives.
After behind-the-scenes negotiations, the revised bill moved quickly through the Senate, passing unanimously before returning to the House.
There, Butler pushed back on the changes and urged lawmakers to continue negotiations.
“I move to send this to conference committee,” Butler said on the House floor.
However, after a Republican caucus meeting, House members voted to concur with the Senate version, sending the bill to the governor without further changes.
The new law will take effect in phases. The governor will appoint additional commissioners to the expanded board, with initial terms beginning in 2027, before the positions transition to staggered elections in the coming years. The energy secretary will remain a permanent, governor-appointed, cabinet-level position directing the commission’s activities and setting meeting agendas.
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