On Wednesday, the Alabama Public Service Commission announced its approval of a rate and revenue reduction for Spire Alabama and its customers.
The vote will lower Spire Alabama's rate of return that it is allowed to earn. Its return range since 2013, was reduced 30 basis points from 10.45% - 10.95% to 10.15% - 10.65%. This reduction of allowed earnings will result in around $5.9 million annual savings for customers, according to the Public Service Commission. This is roughly $26 in yearly savings per customer during the 4-year agreement.
The agreement also allows for a new mechanism to replace the previous cast iron pipe in Spire Alabmama's system.
“The accelerated removal of aging cast iron pipe is a public safety issue that we are seeing across the country," said Commissioner Jeremy Oden.