Federal judge allows solar panel fee lawsuit to move forward

October 5, 2024

MONTGOMERY, Ala. (WAFF) – If you have solar panels on your home, should a utility company be charging you for power you may never end up using?

That’s the basis for a federal lawsuit in Alabama that was just allowed to proceed, following a motion to have it dismissed.

One man is suing the Alabama Public Service Commission over the utility fees they charge, even though his home is equipped with solar panels to cut down those costs.

The APSC was pushing to have this lawsuit dismissed on the grounds that the district court did not have the jurisdiction to rule on the case.

For Alabama Power users, residents who install solar panels on their home are required to pay a mandatory fee that covers any backup power they may use.

However, the Birmingham plaintiff argues those fees are discriminatory, arbitrary, and discourage the use of solar panels in the first place.

This week, a federal judge in Montgomery denied the motion under the Public Utility Regulatory Policies Act.

It’s a federal law that encourages renewable energy use, and the judge cited that in allowing the case to proceed.

In his opinion, the judge states, in part “Based on the well-pleaded allegations in the complaint, the court currently finds that it has jurisdiction over the plaintiffs’ three claims under PURPA.”

One North Alabama resident has a vested interest in this lawsuit.

Stephen McLamb, who owns solar panels on his home, said thankfully he’s not charged this mandatory fee, since he’s not with Alabama Power.

However, he said other states don’t charge these fees, so neither should Alabama.

“Georgia Power, which is part of the Southern Company, they don’t charge any fees. Mississippi Power, they don’t charge any fees. Predominantly, all of the TVA electric co-op don’t charge any fees. And to our south, Florida Power and Light doesn’t charge any fees. But Alabama Power is a for-profit company and they’re simply trying to make the most of being a monopoly.”

We did try to reach out to both sides of this case, but did not get a response.

WAFF 48 News will follow this lawsuit to see how everything plays out now that the judge has given the plaintiffs the go-ahead to continue.

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