Alabama Governor Signs Measure Freezing Power Rates
Critics say the measure was weakened from its original intent, limiting oversight.
April 14, 2026 – Alabama Gov. Kay Ivey signed a utility regulation bill into law April 2, freezing electric rates through 2029 and reshaping oversight of the state’s power sector.
The measure, known as the “Power to the People Act,” comes after years of frustration over rising electricity costs and limited regulatory scrutiny. The Alabama Public Service Commission has not held a formal rate hearing since 1982.
“For Alabama to remain the best state to live, work and raise a family, we have to grow the state while keeping our cost of living low,” Ivey said in a statement released the day she signed the bill.
The law allows regulators to initiate rate hearings, expands the state’s Public Service Commission from three to seven members and creates a governor-appointed secretary of energy. Utility officials must now testify under oath.
Originally introduced by State Rep. Mack Butler, R-Rainbow City, the bill initially required mandatory rate hearings forcing utilities to justify pricing. Lawmakers removed that provision before passage, drawing criticism from advocates and residents.
Reform advocates described the measure as a “wolf in sheep’s clothing,” arguing it was weakened in ways that benefit Alabama Power. Without mandatory hearings, they say, oversight remains uncertain.
Protesters in Birmingham marched to Alabama Power’s headquarters carrying signs reading, “Public utilities should be for the public.”
“We thought the original bill was great,” said an Alabama Power customer, Ashtyn Kennedy, who helped organize a march to the company’s headquarters.
But even some lawmakers who backed earlier versions of the measure expressed disappointment with the changes.
“It just didn't have the triggers, what I call the hammer in there to force it if the rates got to a certain place,” Butler said, explaining his vote against the final bill.
Residents say high power bills remain a burden. “People are having to put their power bills on credit cards,” Kennedy said.
“The people of Alabama deserved better,” said executive director of Energy Alabama, Daniel Tait.
Attention is now turning to upcoming appointments to the Public Service Commission and elections that will shape how the law is implemented.
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