MONTGOMERY, Ala. (AP) - Alabama Power Co. is not planning to cut
electric rates like the Tennessee Valley Authority.
TVA is planning to cut rates about 6 percent on Jan. 1 because
of lower fuel costs. The move comes after a 20 percent hike by TVA
A spokesman for Alabama Power says the company won't reduce
rates because it is trying to recover about $300 million that has
already been spent for fuel to operate its power plants.
But spokesman Michael Sznajderman said Alabama Power, which is raising rates about 13 percent, has agreed to go through 2009 without a
general rate increase.
TVA serves the northern third of Alabama. Alabama serves much of
the southern two-thirds of the state.