Alabama Power Retains Record Profits as Reform Bill Stalls in Senate
A bill that would have capped Alabama Power's profits and forced formal rate case hearings for the first time since 1982 passed the House 104-0, but the Senate never advanced it. The utility's political clout and handshake agreements with key senators unraveled after the spring break. The company kept its record earnings without facing new regulatory oversight.
Butler's proposal represented the most significant challenge to Alabama Power's regulatory standing in over four decades, targeting the utility's profit margins and its practice of passing certain operational costs to ratepayers. The company, a Southern Co. subsidiary, reported $860 million in profit across the first half of 2026, a 14 percent jump that positioned it for a record year.
The bill's momentum collapsed after the spring recess, when informal agreements with senators failed to hold. Alabama Power's lobbying apparatus—at least four firms and six lobbyists—worked against the measure, and observers like former legislator Steve Flowers noted the utility's deep ties to legislative leadership and its history of generous campaign and community giving.
The bill's failure could leave Alabama ratepayers without new protections against rising electricity costs, particularly as data center demand threatens to strain the grid. If profit caps and rate case hearings remain absent, residential customers may bear disproportionate costs while the utility's earnings grow. The episode may also signal to other states that entrenched utility interests can withstand even unanimous legislative opposition, potentially discouraging similar reform efforts nationwide.