Alabama Power Co. files plan for 2015 rate increase, household bills expected to rise $6.78

Alabama Power is planning a 2015 rate increase that will mean a monthly increase of about $6.78 in typical household bills.

A spokesman says the rate adjustment reflects the company's increased costs, including money spent to overhaul coal-fired power plants to reduce emissions.

Alabama Power is allowed to file for yearly adjustments, but the last occurred in 2011. The increases will begin in January unless staff at Alabama Public Service Commission staff object to the company's calculations.

The increase comes despite a heralded 2013 rate formula change that lowered the company's range of profit. Company officials said the change put downward pressure on rates.

Alabama Power spokesman Michael Sznajderman said the 2015 increase would be higher without that change.