Solar customers’ bill savings negated by monthly fee
MONTGOMERY, Ala. – On Wednesday, the US District Court for the Middle District of Alabama ruled for the Alabama Public Service Commission (PSC) and Alabama Power, granting their motions for summary judgment and allowing Alabama Power to continue to charge solar customers extra monthly fees.
Filed by SELC and Ragsdale LLC on behalf of GASP and four Alabama Power customers who invested in residential solar installations, the lawsuit followed the Federal Energy Regulatory Commission’s decision not to take enforcement action against the PSC and alleges the charges violate federal regulations and are discriminatory and unjust. The suit was filed in the United States District Court for the Middle District of Alabama in Montgomery. SELC is examining the court’s decision and our clients’ legal options.
“I am frustrated that Alabama Power solar customers like me have to pay an extra monthly fee in order to reduce our power bills,” said Mark Johnston, an Episcopal priest and retired executive director of Camp McDowell who is a plaintiff in the case and subject to the charges for his 6-kilowatt solar system. “This charge discourages additional residential solar systems in the state, a source of clean, renewable power that decreases the use of fossil fuels. I want lower electricity bills and a better environment for my children and grandchildren.”
Alabama is last in the nation in terms of residential solar kilowatts per customer, and Alabama Power’s charges are hindering its growth. Alabama Power, with approval from the Alabama PSC, charges residential solar customers a monthly fee of $5.41 per kilowatt based on the size of their solar system, which equates to nearly $30 a month for an average system. The monthly fee reduces solar savings and makes installing solar panels impractical.
“This is a disappointing day for Alabama Power customers who want to use solar energy to get relief from some of the highest electricity bills in the nation,” said Christina Tidwell, a senior attorney in SELC’s Alabama office. “Not only are we missing out on the bill savings that could be realized through installing rooftop solar, but we’re also missing out on opportunities for job creation and economic development.”
“Alabama communities are dealing with harmful impacts of our state’s reliance of fossil fuels; meanwhile, Alabama Power and the PSC are chilling clean, bill-reducing solar power,” said Jilisa Milton, executive director of GASP. “Solar energy offers a unique opportunity for residents of Alabama to take control of their energy costs, reduce their carbon footprints, and contribute to a cleaner environment.”
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The Southern Environmental Law Center is one of the nation’s most powerful defenders of the environment, rooted in the South. With a long track record, SELC takes on the toughest environmental challenges in court, in government, and in our communities to protect our region’s air, water, climate, wildlife, lands, and people. Nonprofit and nonpartisan, the organization has a staff of 250, including more than 160 legal and policy experts and advocates, and is headquartered in Charlottesville, VA, with offices in Asheville, Atlanta, Birmingham, Chapel Hill, Charleston, Nashville, Richmond, and Washington, DC.
selc.org
GASP is a nonprofit organization that aims to advance healthy air and environmental justice in the Greater Birmingham area through education, advocacy, and collaboration. We strive to reduce exposure to air pollution, educate the public on the health risks associated with poor air quality, and encourage community leaders to serve as role models by advocating for clean air and clean energy. gaspgroup.org