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Staff reports Alabama Power RSC at 6.10% and February ECR over-recovery of $366,000; cumulative ECR under-recovery $207 million
Summary
Commission staff reported a reprojected return on retail common equity for Alabama Power of 6.10% for the 12 months ending Dec. 31, 2026, an energy cost recovery (ECR) over-recovery of about $366,000 in February 2026, and a cumulative annual ECR under-recovery of roughly $207 million.
Patricia Smith, presenting the Electricity Policy Division's monthly review, told the Alabama Public Service Commission that staff's examination of Alabama Power Company's books and records produced a reprojected weighted return on average retail common equity of 6.10% for the 12 months ending Dec. 31, 2026.
Smith also reported staff's energy cost recovery review showed Alabama Power was over-recovered by approximately $366,000 in February 2026. She contrasted that monthly over-recovery with a cumulative under-recovery for the year-to-date of about $207 million.
Commissioners asked for clarification about the RSC process, and staff explained the monthly formula-driven reconciliation: the company provides operating schedules and accounting schedules that staff inserts into the RSC formula; as months progress, the reprojected numbers incorporate more actual data. Chair Cynthia Almond thanked staff for the "very thorough" ongoing monitoring work.
The exchange emphasized that staff performs continuous monthly monitoring rather than only periodic reviews, and that the ECR and RSC calculations are updated as actual months replace budget months in the projection. No formal vote was required for the informational report.
The figures were reported under dockets relating to Alabama Power's RSC and ECR monitoring; the commission did not alter rates at the meeting but discussed the monitoring process and the magnitude of cumulative ECR under-recovery.
