How We Operate
As a regulated, investor-owned electric utility, we are overseen by a number of agencies. We comply with all laws, regulations and industry standards. Large amounts of company information are available publicly and can be accessed through this page.
Public Service Commission
The Public Service Commission (PSC) is responsible for regulating the retail operations of public utilities serving customers in Alabama. Among other things, the PSC regulates the price of electricity and the quality and value of electric service provided by Alabama Power.
The PSC holds public meetings monthly at its offices in Montgomery. During those meetings, the PSC and its staff discuss information about the operations of the regulated utilities, including Alabama Power. Plus, the PSC holds an annual public meeting at which we provide financial projections related to our rates and environmental expenses for the upcoming year. During this annual meeting, customers, the Attorney General (the consumer advocate for the citizens of Alabama) and other interested parties have the opportunity to ask questions about our company’s operations and finances.
Public Information
We make hundreds of public information submissions each year concerning our finances, operations and plans for the future. Here are some of the things we share with public agencies:
Rate Information: About 30 Filings Each Year
These filings include annually required documents associated with the company’s base rate mechanisms; filings of new or modified rates; and filings relating to the company’s fuel costs.
Environmental Compliance Plan: Annually
Each year, we submit a preliminary and final plan to the PSC that includes information on environmental regulations and legislation applicable to our company, our company’s plans for compliance, and the estimated costs of these compliance activities for the upcoming five years.
Environmental Agency Submissions: More Than 200 Each Year
We submit analytical data required by various environmental permits necessary for system operations. These include information from water samples, emission monitoring, and water withdrawal. We also submit regular compliance reports to help regulators assess ongoing compliance with environmental regulations.
Resource Planning Information: Integrated Resource Plan – Every Three Years
This plan reflects the optimal mix of supply-side and demand-side resources needed to meet the expected electrical requirements of our customers, consistent with our duties and obligations to the public as a regulated public utility. Generally speaking, the integrated resource plan informs us as to when a reliability-based resource addition appears to be needed and what the optimal mix of resources will be to meet customers’ future load requirements.
Avoided Cost Information
We submit avoided cost projections in multiple ways. We annually provide updated avoided cost data to the PSC for purposes of determining the price that will be paid for the sale of alternate energy to certain customers under Rate CPE and Rate PAE. Every other year we also submit projected estimated avoided cost data in accordance with the requirements of the Public Utility Regulatory Policies Act of 1978 (PURPA).
Financial Statements and Reports: About 40 Each Year
We make periodic filings which reflect various information relating to our company’s operations and financial performance, including details regarding revenues and expenses.
Operations: More Than 50 Each Year
The operational data supplied to regulators includes, for certain periods of time, the amount of electricity generated; fuel consumed; fossil fuel stocks; fuel deliveries; fuel supplier information, and specific qualities of the fuel purchased, such as the thermal concentration (Btu) and impurities (for example, the sulfur content of coal used to fuel a steam plant).
Facts & Financials
Agency Oversight
Alabama Public Service Commission (PSC)
The PSC ensures a regulatory balance between regulated companies and consumers to provide consumers with safe, adequate and reliable services at fair rates. All PSC orders and filings are available on its website.
Office of Alabama Attorney General (AG)
The utilities section acts as the consumer’s advocate before the PSC. This office reviews all applications, petitions and pleadings plus represents the residential customers in all filings.
U.S. Securities and Exchange Commission (SEC)
The SEC protects investors and maintains the integrity of the securities market. Alabama Power discloses information about its finances and accounting operations through periodic reports and statements.
Alabama Department of Environmental Management (ADEM)
ADEM’s responsibilities include ensuring that Alabama citizens and businesses such as Alabama Power comply with laws designed to protect the state’s air, water, land and public health.
U.S. Environmental Protection Agency (EPA)
EPA provides regulations and enforces federal environmental laws. EPA also works with environmental officials to issue operating and discharge permits for Alabama Power facilities.
U.S. Department of Energy (DOE)
The DOE addresses America’s energy, environmental and nuclear challenges by focusing on technology solutions. Alabama Power has partnered with the agency on smart grid initiatives, environmental research and more.
Energy Information Administration (EIA)
EIA collects and analyzes a variety of energy-related information and data. Alabama Power reports electricity generation, fuel consumption, sales, revenues, reliability and balancing authority information.
Federal Energy Regulatory Commission (FERC)
FERC regulates the transmission of electricity, sales and transmission of wholesale electricity, oversees hydroelectric projects and licenses and regulates accounting and financial reporting.
U.S. Nuclear Regulatory Commission (NRC)
NRC regulates nuclear facilities to ensure that they operate safely and securely. This includes protecting public health, the environment, nuclear materials and nuclear power plants in the interest of national security.
U.S. Department of Homeland Security (DHS)
DHS is responsible for securing the nation from threats and other hazards.
U.S. Commodity Futures Trading Commission (CFTC)
The CFTC regulates the contracts and swaps marketplace. Alabama Power reports trade option transactions including certain coal, power and natural gas contracts.
U.S. Army Corps of Engineers (Corps)
The Corps’ regulatory program balances protecting aquatic resources and granting permits. It evaluates permit applications for construction activities that occur in waters, including wetlands.
U.S. Internal Revenue Service (IRS)
IRS collects information on taxes.
U.S. Fish and Wildlife Service (FWS)
FWS is responsible, among other things, for preserving and protecting endangered and threatened species and their habitats. Alabama Power must comply with FWS directives.
Alabama Department of Conservation and Natural Resources (ADCNR)
ADCNR manages and regulates use of natural lands, marine resources, fish, wildlife and state parks. ADCNR makes sure Alabama Power’s operations do not have an adverse effect on game and non-game species.
Alabama Office of Water Resources (OWR)
As a division of ADECA, OWR plans, coordinates, develops and manages Alabama's water resources, both ground and surface water. It represents Alabama's intra and interstate water resource interests.
Occupational Safety and Health Administration (OSHA)
OSHA has responsibility to enforce federal laws designed to protect the safety of employees at their workplaces. Alabama Power facilities must comply with OSHA regulations.
SERC Reliability Corporation (SERC)
SERC promotes and monitors compliance with mandatory Reliability Standards and assesses seasonal and long-term reliability.
North American Electric Reliability Corporation (NERC)
NERC’s mission is to assure the reliability of the bulk power system in North America.
Alabama Department of Transportation (ALDOT)
ALDOT is responsible for safe, efficient transportation systems. ALDOT has guidelines to ensure the placement of utility lines and appurtenances within the rights-of-way (ROWs) of state highways and roads.
Federal Communications Commission (FCC)
The FCC regulates interstate and international communications by radio, television, wire, satellite and cable.
Integrated Resource Plan
We produce an Integrated Resource Plan (IRP) every three years. This is a comprehensive road map used by management to make decisions to provide reliable and affordable electricity to meet the needs of customers. The IRP process analyzes our future generation resource needs, including: all types of new generation resources, significant changes in generation, equivalent demand-side resources, and the expectation for new capacity needs, environmental emission limitations and the process by which we determine the optimal mix of any projected additions.
