POWERGRAMS

GOVERNMENT APC history, rate structure among PSC meeting topics T he Alabama Public Service Commission development efforts, including recruiting (PSC) on May 8 kicked off a series of public automaker Hyundai to the Montgomery region. meetings about Alabama Power and the company's Alabama Coal Cooperative Vice President base rate system. Chris Arnold expressed concern that some of the An overflow crowd packed the PSC's meeting environmental groups that intend to participate room for the first meeting, which lasted more than in the PSC meetings are advocating for tougher three hours. Company representatives provided a environmental regulations and eliminating coal as brief history of Alabama Power and a high-level a fuel source – actions he said could raise the price look at the Rate Stabilization and Equalization of electricity and threaten jobs. Keith Johnston, (RSE) system under which the company operates. a lawyer for the Southern Environmental Law The meeting provided a forum for the public, Center, said he would not apologize for the business and industry associations, environmental organization's environmental policies. groups and advocacy organizations to ask questions about Alabama Power and RSE. Zeke Smith, executive vice president of External Affairs, said customer service has been the cornerstone of Alabama Power since its founding more than a century ago. That commitment to service includes providing reliable, affordable energy, and swift response following storms and natural disasters. But it also means working to help make Alabama a better place by focusing on economic development Rate system allows PSC to continually monitor APC operations. and being involved in the community. A spokesman for AARP said the organization "It all starts with the customer," Smith said, does not have a position on the types of fuel the adding that community service is "part of our company uses to generate electricity. Rather, he company's DNA." said, AARP is focused on making sure electric rates Christine Baker, manager of the Regulatory are affordable for seniors. Pricing group, explained the mechanics of RSE Commission President Twinkle Andress and how it has helped keep rates stable. In the 30 Cavanaugh and Commissioner Terry Dunn both years the system has been in place, RSE actions said RSE is not in jeopardy. They said the public have impacted retail rates by an average of less than meetings are to assess the effectiveness of the 1 percent per year. Overall, under RSE, rates have system and determine whether modifications are stayed flat or decreased more years than they have in order. Cavanaugh said coal should remain in increased. Alabama Power's fuel mix, as long as it is costBaker said the system includes protections for effective for customers. customers, such as limiting the amount rates can The commission has public meetings scheduled increase. RSE allows the PSC and its staff to in June and July to examine more closely the RSE continually monitor Alabama Power's operations system, as well as Alabama Power's generation, – unlike periodic reviews under regulatory transmission, distribution and customer service frameworks in many other states. At the same time, operations. the RSE system provides the company resources to keep reliability high, run its plants efficiently and By Michael Sznajderman offer industry-leading customer service. A wide range of organizations provided statements and expressed their intention to participate in upcoming public meetings regarding Alabama Power. Those groups included the Partnership for Affordable Clean Energy, AARP, the Southern Environmental Law Center, the Southern Alliance for Clean Energy, Alabama Industrial Energy Consumers, Alabama Arise, Generation America, the National Federation of Independent Business, Manufacture Alabama, the League of Women Voters, Jobkeeper Alliance, the United Mine Workers and the NAACP. Ellen McNair, a former president of the Economic Development Association of Alabama who is now with the Montgomery Area Chamber of Commerce, told the audience Alabama Power has been critical to the state's economic PAGE 7

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