The ability to generate power in a more cost-effective manner was a major factor in the rate decrease, as APCO was able to use more hydroelectric generation due to record rainfall.

This decrease will reduce an average retail customers bill an average of 7.4 percent, beginning in January 2010.  This decrease also follows the PSC’s broadening of the LPS (light, power, small) definition which can also reduce the rates of small businesses within the Alabama Power service area.

The PSC voted to broaden the definition of the LPS rate, which stands for “light and power, small.” Effective January 1, 2010, thousands more small businesses will qualify for the LPS rate.

Small business managers are advised to call Alabama Power’s customer center at 1-888-430-5787 to ask whether they will qualify for the LPS rate.

Rate changes normally happen automatically, but PSC officials said this type of rate change requires customers to make sure they are on the correct rate. Moving to the LPS could save businesses at least $25 a month, the PSC said.

More information is also available from the PSC by calling (334) 242-5191.