By Chris Peeks September 28, 2023
While writing this blog, I have exposed many things that the Public Service Commissioners have done. I do not even refer to them as commissioners. They are Public Service Criminals. If you thought the hidden tax was something low down that they put upon the citizens. What I'm about to tell you is maybe the most corrupt scandal in Alabama history.
Alabama Power constantly asks for rate increases from the Public Service Criminals, which are always granted. But are they needed? Yes, they claim they need to pay for fuel. But they are given a formula for a profit margin of 12% when other states are around 6%. The Commissioners made that formula, and no additional commission in the nation uses it, so some gas prices shouldn't hurt them, especially when you look at what has happened over the years.
Over 20 years, from 1999 to 2018, Alabama power rates almost tripled. Industrial power rates rose by nearly 57%, Commercial rose by over 72%, while Alabamaians paid the third highest power rates in the nation. But this is only the tip of the iceberg.
From 2014-2018, the Public Service Criminals allowed Alabama power to profit by 1 billion dollars by approving rate increases, but I'm just getting started. During COVID-19, even though the rate of equity went down or profit margin, they still earned over a billion dollars. How did they do that, you might ask? By overcharging customers with the hidden tax, I mentioned in my previous article.
Alabama Powers' profit margin is 38% above Georgia's, but that's not good enough for them. Four rate increases in 2022 saw the average annual cost go up $275. And don't forget that the Commissioners approved one of these rate increases two days after Commissioners Beeker and Oden won re-election. In 2023, it rose another 4% or $6.81 per customer.
Now, why would they need such huge profit margins.? An unnamed source told me that each March, a bonus is handed out to all 5,400 employees under something called the performance payment plan. So I checked it out. What I found is astonishing.
The average employee makes $29.32 an hour and receives a $8,000 bonus. So I randomly picked the year 2021, and that year, Mark Crosswhite, As Chairman, President, and Chief Executive Officer at ALABAMA POWER CO, made $4,789,895 in total compensation. Of this total, $878,425 was received as a salary, $1,261,454 was received as a bonus, $0 was received in stock options, $2,584,436 was awarded as stock, and $65,580 came from other types of compensation. This information is according to proxy statements filed for the 2021 fiscal year.
As Executive Vice President, Chief Financial Officer, and Treasurer at ALABAMA POWER CO, Philip C. Raymond made $1,164,779 in total compensation. Of this total , $431,914 was received as a salary, $383,332 was received as a bonus, $0 was received in stock options, $319,762 was awarded as stock, and $29,771 came from other types of compensation. This information is according to proxy statements filed for the 2021 fiscal year.
As Senior Vice President at ALABAMA POWER CO, R. Scott Moore made $984,943 in total compensation. Of this total , $361,736 was received as a salary, $324,743 was received as a bonus, $0 was received in stock options, $270,847 was awarded as stock, and $27,617 came from other types of compensation. This information is according to proxy statements filed for the 2021 fiscal year.
As Executive Vice President at ALABAMA POWER CO, J. Jeffrey Peoples made $1,598,544 in total compensation. Of this total , $518,143 was received as a salary, $506,471 was received as a bonus, $0 was received in stock options, $520,811 was awarded as stock, and $53,119 came from other types of compensation. This information is according to proxy statements filed for the 2021 fiscal year.
As Executive Vice President at ALABAMA POWER CO, Zeke W. Smith made $1,166,969 in total compensation. Of this total , $431,914 was received as a salary, $383,332 was received as a bonus, $0 was received in stock options, $319,762 was awarded as stock, and $31,961 came from other types of compensation. This information is according to proxy statements filed for the 2021 fiscal year.
So, let me see If I can tie this all in. We are not getting rate increases because of rising fuel costs. We're getting rate increases to pay for millions of dollars of bonuses each year for Alabama Power's Executives and other employees from the public service criminals. And they are getting rewarded every election cycle with campaign donations. In 2022, they funded a War chest of almost $4 million and paid for Beeker and Oden's reelections. And remember the article I did a while back about the EDU PAC, which Alabama Power funded. They are one of Twinkle Cavanaugh's biggest donors.
When one Alabama Power executive was confronted about this he said "they would continue to do it until the public found out about it." The Public Service Criminals are being bribed to approve rate increases with substantial campaign donations to keep them in their $ 100,000-year job. If this is not a violation of campaign finance laws, I don't know what it is. It is now time for Attorney General Steve Marshall to launch a full investigation of what is taking place at the Public Service Commission.
By Chris Peeks
Reporter and Columnist
Alabama Political Contributor
https://energyandpolicy.org/alabama-power-earned-1-billion-in-profits-over-industry-average-on-the-backs-of-customers-since-2014/
Alabama Power-funded PAC builds almost $4 million ... https://energyandpolicy.org/alabama-power-funded-pac-builds-almost-4-million-election-warchest/