Regulators Move to Keep Ad Costs off Power Bills
Alabama businesses paying Alabama Power retail rates may see advertising expenses excluded from their electricity charges through 2028.
Updated on Nov. 5, 2026 in Utilities
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Alabama's Public Service Commission voted 3-0 on November 3, 2026, asking Alabama Power to stop passing advertising costs to customers through retail rates until after December 31, 2028. Alabama Power serves about two-thirds of the state, so the request reaches a large share of residential and business electricity bills.
Why it matters
The request follows a state law passed earlier in 2026 that bars Alabama Power from charging customers for advertising starting in 2029, and it lands as the company faces heavy criticism over rising electricity prices. For operators, the episode shows regulators scrutinizing which utility costs get recovered from ratepayers, which can shape the rates businesses pay for power.
Alabama Power spent more than $6 million on general advertising last year, roughly $4 per customer, according to FERC filings. Under current rules, the utility may bill customers for half of its non-public safety advertising costs, and the commission voted 3-0 to request that those costs be excluded until after December 31, 2028.
The players
Alabama Power
Alabama Power is the largest electricity provider in Alabama, serving about two-thirds of the state and regulated by the Alabama Public Service Commission.
Alabama Public Service Commission
The Alabama Public Service Commission regulates the rates and charges of the state's investor-owned utilities, including retail electricity rates paid by businesses and households.
Cynthia Lee Almond
Cynthia Lee Almond is the president of the Alabama Public Service Commission, who made the motion asking Alabama Power to exclude advertising expenses from retail rates.
The details
The commission acted through a motion by PSC President Cynthia Lee Almond that was not on the meeting agenda. The motion asks Alabama Power to consent to excluding advertising expenses from retail rates, with the interim measure reflected in its Rate Stabilization and Equalization filings for 2027 and 2028. Because the request is directed at the company's retail rate filings, it affects how advertising costs are recovered from ratepayers rather than the utility's own spending decisions.
Timeline
Earlier in 2026: state law prohibiting advertising charges to customers passed
Late 2025: Alabama Power announced a rate freeze and launched television commercials touting it
November 3, 2026: PSC voted 3-0 to request that Alabama Power stop advertising charges immediately
January 2027: the expanded seven-member PSC takes office
January 1, 2029: state law banning advertising charges takes effect
Market Landscape
The commission's request accelerates the timeline set by a state law passed earlier in 2026 that bars Alabama Power from charging customers for advertising starting in 2029. It also follows the company's late 2025 rate freeze announcement and television campaign, which launched amid heavy criticism over rising electricity prices.
Operators who buy electricity in Alabama should watch how Alabama Power's 2027 and 2028 Rate Stabilization and Equalization filings treat advertising expenses. Finance and procurement teams should model whether retail rate changes follow the commission's request, and should consult a qualified accountant on how any rate changes affect their energy budgets.
The takeaway
Regulators are moving to keep advertising costs off electricity bills, and operators should track whether the request becomes a formal change in rates. Review Alabama Power's upcoming rate filings for 2027 and 2028 and confirm with your accountant how any approved changes affect your electricity expense.
What happens next
The expanded seven-member PSC takes office in January 2027, and the state ban on advertising charges takes effect January 1, 2029.
Further reading
For more on how regulators set the charges that reach business electricity bills, see Utilities coverage on Alabama.
Source note: This article includes information reported by InsideClimate News.
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