Alabama residents pay the highest electric bills in the nation, and they might have George Wallace to thank for it. (Inside Climate News)
In the 1970s, Gov. Wallace—seeking a populist target after segregation failed—waged a chaotic war against Alabama Power, effectively bankrupting the utility by blocking rate hikes.
To prevent future political meddling, regulators created a system called “Rate Stabilization and Equalization” (RSE) in 1982, putting rate hikes on autopilot without public hearings.
While intended to stabilize the grid, the system locked in massive profit margins (up to 14.5%) based on 1980s interest rates. As a result, Alabama Power has raked in an estimated $1B in “excess” profit over a 5-year period compared to the national average.