The Alabama Public Service Commission (PSC), the state’s primary utility regulator, is undergoing one of the biggest transformations in its history. Recent reporting from Inside Climate News highlights how high electricity bills, growing concerns over Alabama Power, the expansion of data centers and political changes are reshaping the commission.
The PSC traditionally consisted of three elected commissioners who oversee major utilities and help determine electricity rates and regulatory policies. Alabama Power, the state’s largest electric utility, must receive approval from the commission for rate increases and certain major projects. The PSC also has authority involving other utilities, including natural gas and telecommunications providers.
One of the biggest changes came through legislation passed by the Alabama Legislature in 2026. The new law expands the commission from three members to seven, with one commissioner representing each congressional district. It also creates a new secretary of energy position appointed by the governor, shifting some regulatory authority away from the PSC.
The restructuring comes amid growing frustration over electricity costs. An Inside Climate News analysis found that Alabama Power residential customers had the highest average total electric bills among the nation’s 100 largest investor-owned utilities. Critics have argued that Alabama’s regulatory system has contributed to those high costs.
The issue has also become increasingly political. During the 2026 Republican primary elections, incumbent commissioner Jeremy Oden lost his seat, while Chris Beeker III was forced into a runoff. Rising energy prices became an important issue for voters, putting pressure on commissioners who had faced criticism for not initiating a formal rate case against Alabama Power.
Another major development involved the appointment of four new commissioners. Gov. Kay Ivey selected retired Army General Ron Burgess, telecommunications executive Fred Johnson, attorney Demarcus Joiner and Alabama State University President Quinton Ross. Joiner and Ross will become the first Black commissioners in the PSC’s 145-year history when they take office in January 2027.
The appointments are historically significant because the commission had never previously included a Black member. The new seven-member structure is therefore expected to change both the political makeup and geographic representation of the state’s utility regulator.
At the same time, questions remain about how much authority the expanded commission will actually have. Under the new system, initiating a formal rate case becomes more difficult, requiring approval from the secretary of energy or a supermajority of five commissioners in certain circumstances. Critics argue that this could make it harder for regulators to scrutinize Alabama Power’s rates and profits.
The PSC is also facing new challenges from Alabama’s rapidly developing data-center industry. Large technology facilities require enormous amounts of electricity, raising concerns about whether ordinary residential customers could ultimately bear some of the costs associated with expanding the power grid. New legislation directs commissioners to consider whether costs associated with serving data centers are passed on to residential ratepayers.
Overall, the Alabama Public Service Commission is entering a new era. Its expansion, changing leadership, political battles and continuing debate over electricity prices could have major consequences for millions of Alabama residents. As the seven-member commission prepares to take shape, the central question will be whether the new structure provides stronger public oversight or makes meaningful regulation of powerful utilities more difficult.
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