Alabama Power spent more than $6 million on ads last year — and customers can be billed for half of them until 2029

Alabama Power spent more than $6 million on advertising last year, and customers could be billed for half of that amount through 2029.

The spending creates a direct connection between the utility’s advertising budget and household electricity costs. If the arrangement remains in place, customers may ultimately help pay for advertising expenses incurred by the company.

What the spending means for customers

Under the terms described in the report, as much as half of Alabama Power’s advertising spending can be passed on to customers until 2029. Based on the reported total, that means more than $3 million of the advertising expense could be customer-billed if the full amount is allocated.

The issue centers on whether advertising costs should be included in charges paid by utility customers. The available information identifies the spending level and the period during which customers may be billed, but does not provide additional details about the advertising campaigns or how the costs would appear on individual bills.

Why it matters

Utility customers typically have a direct financial interest in how company expenses are treated. The possibility of paying for part of Alabama Power’s advertising makes the spending relevant beyond the company’s internal budget.

The customer-billing provision extends through 2029, keeping the issue in view for several years. The reported figures do not establish the exact amount any individual customer would pay.