MONTGOMERY — Sheila McNeil filed a federal lawsuit challenging Alabama’s new law that restructured the Public Service Commission ahead of the November 2024 elections. The lawsuit, filed in the U.S. District Court for the Middle District of Alabama, argues the law violates the 14th Amendment’s Equal Protection Clause and the Voting Rights Act.
The Alabama legislature passed a law expanding the Public Service Commission from three to seven seats, with each seat representing one of the state’s seven congressional districts instead of being elected statewide. The law also created a secretary of energy appointed by the governor, who will largely control the commission’s agenda, including whether to initiate a formal rate case to assess Alabama Power’s energy prices. A supermajority of five commissioners would be required to call a rate case without the secretary’s approval.
McNeil, who was slated to be the Democratic nominee for a Public Service Commission seat without facing a primary challenger, contends that implementing the restructuring before the November 2024 elections disrupts an ongoing election by changing the fundamental character of the office being contested. Her lawsuit states, “HB 475 converts the office of PSC Commissioner from a position of independent regulatory authority into one that is substantially subordinate to the executive branch.” It adds, “A candidate who won this office in 2026 would serve on a commission whose agenda is controlled not by the elected commissioners but by someone the Governor selected.”
The lawsuit also describes the creation of the secretary of energy position as “particularly arbitrary” and argues it strips commissioners of previously held powers. McNeil’s legal team has requested a preliminary injunction to block implementation of the law before the case is fully heard.
John Northrop, a Democratic candidate for another contested Public Service Commission seat, withdrew from the race after the law passed. “The law has changed the PSC’s function, authority, size, and the term length of commissioners. The new job is not the job I signed up to win. It’s a job I believe others are better suited to fill,” Northrop said.
Daniel Tait, executive director of Energy Alabama, said, “The provisions being challenged are the same ones we warned would hand two officials in the executive branch—the governor and the energy secretary—effective control over the body that sets Alabama Power’s rates.” He added, “Alabamians, who’ve been paying record-high electric bills while Alabama Power’s profits doubled, deserve something better than a law that enacts regulatory capture. We welcome judicial review of this law.”
Barring court intervention, Governor Kay Ivey must appoint four interim commissioners by July 15. Neither she nor Attorney General Steve Marshall has responded to the lawsuit as of the time of reporting.