Alabama Attorney Challenges Power Company, Regulators over Solar Energy Rates
MONTGOMERY, Ala. – A legal battle is brewing in Alabama over how the state’s largest utility, Alabama Power, compensates customers for the excess energy generated by their rooftop solar panels. Attorney Jim Whitehurst has filed a petition challenging the rates approved by the Alabama Public Service Commission (PSC), alleging they undervalue solar energy and unfairly benefit the utility at the expense of customers investing in renewable resources.
The dispute centers on what’s known as “net metering,” where customers receive credit on their bills for the electricity they send back to the grid. Whitehurst argues the PSC-approved rates,which are lower than the full retail price of electricity,effectively penalize solar customers and discourage wider adoption of renewable energy.This case arrives as Alabama, like other states, grapples with balancing the growth of distributed solar generation with the need to maintain a reliable and affordable power grid.
Whitehurst’s petition claims Alabama Power’s current structure avoids costs the company would or else incur – fuel and operating expenses - when utilizing customer-generated solar power rather of relying on traditional energy sources. The legally defined purchase price for this excess energy is lower than the rate Alabama Power charges consumers, a rate designed to cover the costs of infrastructure like generators, power lines, and maintenance crews.
According to documentation supporting the challenge, this rate structure is intended to support customers choosing solar installations without shifting grid maintenance costs onto non-solar customers. Though, Whitehurst contends the current rates do not adequately reflect the benefits solar energy provides to the grid and the broader energy market.
the PSC declined to comment on the specifics of Whitehurst’s case,citing pending litigation. A resolution to the challenge could significantly impact the financial viability of residential solar installations in Alabama and influence the future of renewable energy policy within the state. The outcome will likely set a precedent for how Alabama balances the interests of utilities, solar customers, and the broader public as solar energy continues to expand.
