Electric Cities of Alabama-Electric Cities Connected 

Volume 10, Issue 3

In a recent letter from Congressman Bobby Bright (AL-2) to the United States Department of Energy (DOE) Secretary Steven Chu, Bright shared his support for Alabama customers who rely on electricity produced from hydroelectric power generated at the Corps of Engineers Russell Dam in Georgia. As you may know, the Southeastern Power Administration (SEPA) has been debating whether or not to include roughly $340 million in disputed costs in rates for the sale of energy and capacity. These disputed costs relate to litigation commenced over two decades ago in connection with the installation of four reversible pumped storage generation units.

“Bright’s letter was instrumental in the department’s decision to deny the Corps plan to bill customers $340 million in interests. SEPA is generally obligated to pass through the costs assigned by the Corps for power and if SEPA had agreed to do so, it would have meant a large rate increase” said Chris Eckl, legislative affairs specialists for Schiff Hardin LLP. The Secretary agreed with Bright’s position and recently signed the Russell rate package without the additional costs.

“I am proud to have been an effective advocate for Electric Cities of Alabama and my constituents whom they serve. This proposed rate increase could have triggered a 30% increase in electricity costs for my constituents, and I applaud the Department of Energy’s (DOE) decision to exclude the disputed costs in their final proposal. I am hopeful that the review process will be completed in a timely manner and that FERC will accept DOE’s decision,” Congressman Bright said.

Thank you to Congressman Bright and his staff for intervening with Secretary Chu to correct what could have been a major injustice for Alabama.