PSC: Spire Alabama to return about $2.91 million to customers under RSA review

At its May 5, 2026 meeting the Alabama Public Service Commission accepted staff calculations showing that Spire Alabama’s projected return on average common equity exceeded the commission’s allowed range, producing a customer giveback of $2,909,881 that staff said will be reflected in rates beginning June 1, 2026.

Jeff Johnson of the Utility Services Division explained the commission’s Rate Stabilization and Equalization (RSA) process, saying staff “review the monthly revenues and expenses” and compare projected year‑end earnings to the authorized range. “If it is calculated that the company will earn above the allowed range, the amount above the set return on equity is required to be refunded to customers in the form of a giveback through rates,” Johnson said. He told commissioners the projected RSA return for Spire Alabama at the March 31, 2026 point of test was 9.94 percent.

Johnson and commissioners framed the giveback as a routine, formula-driven adjustment. “This customer giveback is a result of the design of RSA and is an example of striking the balance between the utility and the consumer,” Johnson said. He also clarified the RSA mechanism limits action to returning money when earnings exceed the authorized range.

The commission’s vote to accept the division report and its recommendation carried without recorded opposition. Staff also reported that Spire Gulf’s projected RSA return (9.05 percent) was below its authorized range and therefore did not require a giveback.

The adjustment is administrative; no further public hearing was announced. Customers should see the change reflected in company rates effective June 1, 2026.