Where does Fairhope get its electricity?
There are three providers of electricity in Alabama, Investor Owned Utilities, Electric Cooperatives, and Municipally Owned Systems. Fairhope’s electric system has been city-owned right from the start, just like our water, sewer, and natural gas systems. In 1978, the nation was on the edge of a depression, but Fairhope was growing fast, and we were spending a lot of money on utilities, building substations and putting in new lines to keep up with the growth. That same year, Alabama Power approached the City to buy our electric system, and it came close, but the City Council voted down the sale. The Mayor then negotiated better rates with Alabama Power, but we knew we needed something more than that. Before 1981, state law prohibited cities in Alabama from joining together to control their electric supply. But after that law was changed, eleven Alabama cities joined together to form the AMEA – Alabama Municipal Electric Authority. In 1986, the cities signed contracts giving AMEA the right to negotiate rates, and with the combined buying power of eleven cities, AMEA is able to obtain reliable, cost-effective electricity.
Updated 11/14/2019 9:05 AM