HB475 Alabama 2026 Session

Summary

Primary Sponsor

Mack N. ButlerRepresentative

Republican

Session

2026 Regular Session

Title

Public Service Commission; number of commissioners expanded to represent congressional districts, phase-in by election provided, term of office revised, position of Secretary of Energy established as cabinet member, calculation of electric utility rates revised; rate hearings authorized

Summary

HB475 would overhaul Alabama's Public Service Commission by adding district-based commissioners, creating a Secretary of Energy in the governor's cabinet to guide the PSC, and adding rate limits and more public oversight for electric utilities.

What This Bill Does

Expands the Public Service Commission from three to seven commissioners, each representing a congressional district, with phased elections starting in 2026 and six-year terms after 2026. It creates the Secretary of Energy as a cabinet member appointed by the Governor to direct the PSC and set meeting agendas, with the authority to manage PSC staff. It restricts electric base rate increases until 2029 and, starting in 2029, bars certain costs—such as lobbying, grants affecting rates, and non-public-safety advertising—from being included in rate calculations, with utilities required to affirm compliance and the PSC authorized to investigate violations. It also requires at least one annual public meeting with utility representatives and authorizes formal rate hearings to examine rate-making factors and ensure transparency.

Who It Affects

• Electric utilities regulated by the Public Service Commission will be governed under a district-based seven-commissioner system led by the Secretary of Energy, and will face new rate rules and oversight
• Ratepayers and Alabama residents will gain more public oversight, including annual meetings and delayed rate increases, with protections against certain costs in rate calculations.

Key Provisions

• Expands PSC to seven commissioners, each elected from one congressional district aligned to the 2024 districts, with phased elections beginning in 2026 and six-year terms thereafter; initial four commissioners appointed in 2026 for two two-year terms and two four-year terms.
• Creates the Secretary of Energy as a governor's cabinet member who directs the PSC, sets meeting agendas, oversees PSC staff, and is subject to ethics laws; salary set by the Governor.
• Prohibits increases in electric retail base rates before January 1, 2029; after that, prohibits including certain costs in rate calculations (funding/grants affecting rates, lobbying costs, non-public-safety advertising).
• Utilities must affirm that prohibited costs are not included in rate calculations; if affirmed false, the rate or service regulation can be void and the PSC may investigate.
• Requires at least one public meeting per calendar year with utility representatives to discuss cost trends, reliability, infrastructure investment, economic development, and grid security; rate hearings may be held on trigger by commissioners or the Secretary, with sworn testimony.
• Implements conforming changes to related law, repeals old PSC provisions (37-1-9), aligns references to the 2024 congressional districts, and sets effective dates (June 1, 2026; Secretary of Energy starts Jan 19, 2027); establishes merit-system staffing for PSC and staffing transfers as needed for implementation.

AI-generated summary using openai/gpt-5-nano-2025-08-07 on Apr 2, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Telecommunications & Utilities