Alabama Power Commits to Steady Rates Through 2027

Alabama Power (NYSE:SO) said it will keep all regulated retail rate components steady through 2027, providing customers predictability while continuing investments in grid reliability.

Rhea-AI Summary

Alabama Power (NYSE:SO) said it will keep all regulated retail rate components steady through 2027, providing customers predictability while continuing investments in grid reliability. The company delayed implementation of previously approved adjustments for the new Lindsay Hill generation facility until 2028 and will absorb that facility's costs in 2027 rather than deferring them. Alabama Power noted it has reduced operating expenses by about $100 million since 2017 and will continue efficiency and storm-resilient infrastructure investments. Customers may still see bill changes based on usage; assistance tools are available at alabamapower.com/save.

Positive

• Commitment to hold all regulated retail rates steady through 2027
• Will absorb Lindsay Hill facility costs in 2027 (no deferral to customers)
• Operating expenses reduced by $100 million since 2017

Negative

• Absorbing Lindsay Hill costs in 2027 may pressure near-term cash or margins

Argus Dec 2 session

+0.03% close to close Open Argus

Details

News Market Reaction – SO

On Dec 2, the day this news came out, SO closed 0.03% above the previous close.

Data tracked by StockTitan Argus for the Dec 2 session.

Key Figures

Operating expense reduction: $100 million Rate commitment horizon: Through 2027 Lindsay Hill adjustment delay: Until 2028 +5 more

Operating expense reduction

$100 million

Reduced since 2017 despite higher equipment costs

Rate commitment horizon

Through 2027

All regulated retail rate components held steady

Lindsay Hill adjustment delay

Until 2028

Previously approved adjustments deferred to 2028

Customers served

1.5 million

Alabama Power customers across the state

Current share price

$84.73

Prior to this news

52-week high

$100.835

Pre‑news 52‑week high for SO

52-week low

$80.46

Pre‑news 52‑week low for SO

Market cap

$92,580,895,199

Pre‑news market capitalization

Historical Context

5 past events · Latest: Dec 10

5 events

1. Dec 10

   Regulatory agreement

   24h Move

   -1.6%

   Georgia Power pact to lower costs while adding ~9,900 MW of new resources.

2. Dec 08

   Grid investment update

   24h Move

   -0.8%

   Major South Metro Atlanta transmission upgrades under a PSC‑approved 10‑year plan.

3. Dec 02

   Rate stability pledge

   24h Move

   +0.0%

   Alabama Power commits to steady regulated retail rates through 2027 and absorbs costs.

4. Nov 26

   Customer engagement promo

   24h Move

   +1.1%

   Light Up the Holidays contest with Atlanta Falcons and energy‑efficiency messaging.

5. Nov 10

   Customer assistance program

   24h Move

   -0.7%

   Project SHARE 40th anniversary highlighting $84M in aid to 425,000+ families.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

regulated retail rates, generation facility, energy grid, infrastructure

4 terms

regulated retail rates financial

"All components of Alabama Power's regulated retail rates are not scheduled..."

Regulated retail rates are the prices that government or independent regulators set or approve for goods and services sold to everyday consumers, commonly for utilities like electricity, water or gas. These rates matter to investors because they limit how much companies can charge, creating predictable revenue but also capping profit growth; changes in those rules can quickly alter cash flow and the value of utility-like businesses.

generation facility technical

"implementation of previously approved adjustments for the Lindsay Hill generation facility."

A generation facility is a physical site — like a plant or station — where energy is produced and converted into electricity for homes, businesses, or the grid. Think of it as a factory that turns fuel, wind, sunlight, or heat into usable power; its size, running costs, reliability, and environmental permits directly affect how much revenue it can generate and how risky or valuable the investment is for shareholders.

energy grid technical

"we will not waiver in our efforts to strengthen the energy grid and invest..."

The energy grid is the interconnected system — power plants, transmission lines, substations and local distribution networks — that delivers electricity from producers to homes, factories and businesses. Think of it as a highway network for electricity: its capacity, reliability and ability to integrate new sources (like solar or wind) directly affect costs, outage risk and the value of companies in utilities, equipment makers and energy-dependent businesses, so investors watch grid health and upgrades closely.

infrastructure technical

"invest in smart, storm-resilient infrastructure, so customers receive the reliable service..."

Infrastructure is the network of long-lasting physical and digital systems—like roads, bridges, power lines, water pipes, data centers and broadband networks—that keep an economy running, similar to a city’s backbone. For investors it matters because these assets are costly to build but often provide steady, predictable cash flow or value over many years, are influenced by government policy and regulation, and can offer diversification or inflation protection in a portfolio.

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Multi-year rate stability plan provides certainty for customers
while company focuses on efficiencies and grid investments

BIRMINGHAM, Ala., Dec. 2, 2025 /PRNewswire/ -- Following today's Alabama Public Service Commission meeting, Alabama Power announced its commitment to keep customer rates steady through 2027 while maintaining the dependable service customers count on. All components of Alabama Power's regulated retail rates are not scheduled to increase through 2027. 

"We know budgets are tight, and power bills are a real concern for many families and businesses," said Moses Feagin, Alabama Power's executive vice president, chief financial officer and treasurer. "This commitment gives customers more certainty and predictability around electric rates at a time when many other household and business costs are rising." 

Alabama Power will hold in place all existing factors in customer rates, including delaying until 2028 the implementation of previously approved adjustments for the Lindsay Hill generation facility. As part of the commitment to keeping rates steady, the company will absorb the newly acquired facility's costs in 2027 rather than deferring or shifting those costs to a later date. 

"Since 2017, Alabama Power has reduced operating expenses by about $100 million despite the cost of equipment, such as transformers, poles and wires, increasing significantly during this time," Feagin said. "We will not waiver in our efforts to strengthen the energy grid and invest in smart, storm-resilient infrastructure, so customers receive the reliable service they deserve in communities across our state." 

While rates will remain level through 2027, bills could still go up or down based on the amount of electricity a customer uses each month. To help customers manage their bills, Alabama Power is pairing rate stability with tools and assistance. These include the company's Bill Explainer, Rate Advisor, Energy Assistant, Budget Billing and payment assistance programs that help customers better understand their bill, choose options that fit their needs and find help when they need it. 

For more information about tools to help manage power bills, visit alabamapower.com/save. 

About Alabama Power 

Alabama Power, a subsidiary of Atlanta-based Southern Company (NYSE:SO), provides reliable electricity to 1.5 million customers across the state. Learn more at alabamapower.com. 

View original content to download multimedia:https://www.prnewswire.com/news-releases/alabama-power-commits-to-steady-rates-through-2027-302630887.html

SOURCE Alabama Power Company

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What does Alabama Power (SO) mean by keeping rates steady through 2027?

All components of Alabama Power's regulated retail rates are not scheduled to increase through 2027, providing price predictability for customers.

How will the Lindsay Hill generation facility affect Alabama Power (SO) rates and timing?

Implementation of previously approved Lindsay Hill rate adjustments is delayed until 2028, and the company will absorb the facility's costs in 2027.

Does rate stability mean my Alabama Power (SO) bill will not change monthly?

No; rates stay level through 2027, but individual bills can rise or fall based on each customer's monthly electricity usage.

What customer tools does Alabama Power (SO) offer to manage bills during the rate commitment?

Available tools include Bill Explainer, Rate Advisor, Energy Assistant, Budget Billing, and payment assistance programs at alabamapower.com/save.

How significant is Alabama Power's reported expense reduction for investors in SO?

The company reports operating expenses have fallen by about $100 million since 2017, reflecting ongoing efficiency efforts.