Alabama Legislature Approves PSC Expansion Bill

Measure sent to Governor Ivey would allow, but not mandate, formal rate hearings

Apr. 3, 2026 at 8:51am

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A dimly lit, cinematic government office space with a single desk and chair in the center, the scene bathed in warm, diagonal sunlight and deep shadows, conceptually representing the quiet, behind-the-scenes workings of state utility regulation.The Alabama Legislature's vote to expand the state's utility regulator reflects an ongoing tension between increased oversight and public transparency.Montgomery Today

The Alabama Legislature has approved a bill that would expand the state's Public Service Commission (PSC) and give it the ability to hold formal rate hearings with utility companies, though such hearings would not be required under the legislation.

Why it matters

The PSC is responsible for regulating utility rates and services in Alabama, and this bill aims to provide the commission with more oversight capabilities, though some argue it does not go far enough in requiring public input on rate changes.

The details

The bill approved by the legislature would increase the size of the PSC from three to five members. While the expanded commission would have the option to hold formal rate hearings, it would not be mandated to do so, raising concerns from consumer advocates about transparency and public participation in the rate-setting process.

  • The Alabama Legislature passed the PSC expansion bill on April 3, 2026.

The players

Alabama Public Service Commission (PSC)

The state agency responsible for regulating utility rates and services in Alabama.

Governor Kay Ivey

The Governor of Alabama, who will now decide whether to sign the PSC expansion bill into law.

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What’s next

Governor Ivey will now decide whether to sign the PSC expansion bill into law.

The takeaway

This legislation represents a compromise approach to expanding the powers of Alabama's utility regulator, balancing the desire for more oversight with concerns about mandating public input on rate changes.