Alabama Power Co. customers are going to see their rates drop Jan. 1.
The Public Service Commission voted unanimously Tuesday to enact a 4 percent cut for Alabama Power's residential customers.
Under the new rate, the typical residential customer who uses 1,000 kilowatt-hours each month will go from paying $125.34 a month to $120.77.
The decrease stems in part from declining prices for natural gas and coal that Alabama Power uses to run its generating plants.
Rates for Mobile Gas Co. customers are also declining due to cheaper natural gas prices. Rates for Alabama Gas customers dropped last month for the same reason.