House Bill 475 Alabama 2026 Session

Summary

Primary Sponsor

Mack N. ButlerRepresentative

Republican

Session

2026 Regular Session

Title

Utilities; Public Service Commission required to hold meetings, certain costs prohibited from use in calculation of rates

Summary

HB475 would require the Public Service Commission to hold annual public meetings about utility regulation and would bar certain costs from being included in electricity rate calculations, with impeachment provisions for noncompliance.

What This Bill Does

The bill requires the Public Service Commission to convene at least annual public meetings with utility representatives to discuss rates, cost trends, reliability, infrastructure plans, and regulatory issues, with public participation and notices provided under the Open Meetings Act. It creates an impeachment mechanism for commissioners if a required meeting is not held or notice is not given. It also prohibits electric utilities from including certain costs—funding grants, lobbying, or advertising—when calculating new rates or changing service regulations, requires utilities to affirm they have not included these costs, and allows the commission to void a rate if the affirmation is missing or to investigate violations.

Who It Affects

• Public Service Commission (and its staff) – required to hold annual meetings, provide public notice, and face impeachment for failure to meet these duties.
• Electric utilities (retail electricity providers) – prohibited from including specific non-rate-related costs in rate calculations and must affirm compliance; violations can lead to voided rates and investigative actions.

Key Provisions

• Adds Section 37-1-32.1 requiring the PSC to convene at least annually a public meeting with utility representatives to discuss rates, cost trends, reliability, resilience, infrastructure plans, competitiveness, economic development impacts, and other regulatory issues, with public participation.
• Adds Section 37-1-32.1(b) requiring notice of each meeting to the public in compliance with the Alabama Open Meetings Act.
• Adds Section 37-1-32.1(c) authorizing impeachment of commissioners for willful neglect of duty if a required meeting is not held or notice is not provided.
• Adds Section 37-1-81.1 prohibiting electric utilities from including in rate calculations or service regulations certain costs: (1) funding grants to others, (2) lobbying costs, (3) advertising costs.
• Adds Section 37-1-81.1(b) requiring utilities filing a new rate or regulation to affirm they did not include prohibited costs; if the affirmation is missing, the rate or regulation is void.
• Adds Section 37-1-81.1(c) authorizing the PSC to investigate suspected inclusion of prohibited costs in rate determinations.
• Effective date: October 1, 2026.

AI-generated summary using openai/gpt-5-nano on Feb 19, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Telecommunications & Utilities