Alabama power postpones rate hike for $622 million natural gas plant following public pressure

Alabama Power, the state’s largest electric utility, has agreed to delay a controversial rate increase by one year following widespread public backlash over rising electricity bills. The proposed rate hike was originally scheduled to help recover costs from the company’s $622 million acquisition of the Lindsay Hill Generating Station, a natural gas power plant purchased earlier this year.

The utility giant had initially planned to begin passing these costs on to customers sooner, but intense public opposition has forced the company to push back the rate increase until 2028. Alabama Power customers have been increasingly vocal about their concerns over mounting utility bills, creating significant political and social pressure on the company to reconsider its timeline.

Despite this delay, Alabama ratepayers will ultimately still face higher electricity costs to cover the massive investment in the gas-fired facility. The postponement provides temporary relief for consumers already struggling with energy affordability, but it merely shifts the financial burden to a later date rather than eliminating it entirely.

The controversy highlights ongoing tensions between utility companies’ infrastructure investments and customer affordability concerns. As utilities nationwide continue investing billions in new power generation facilities—often choosing natural gas plants over renewable alternatives—similar disputes over who pays for these projects and when are becoming increasingly common. Environmental advocates argue that such investments in fossil fuel infrastructure may lock ratepayers into decades of costs for plants that could become stranded assets as clean energy alternatives become more economically competitive.