Why Are My Bills So High?

A limited series from Sharon Phillip of Arm in Arm, examining the connections between Southern Company's predatory business practices and our steadily increasing electric bills.

About this series:

Arm in Arm is a grassroots organization dedicated to ending the climate crisis by centering racial and economic justice. Through our signature campaign, Power 4 Southern People NOT Southern Company, we highlight the unfair billing and predatory practices that continue to harm our black and brown communities. In this series, we hope to help educate consumers as we explore the connections between Southern Company's business practices and our steadily increasing electric bills.

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Part 1 - Southern Company’s Pipelines

When you hear the name "Southern Company," what comes to mind? If you live in the Southeast you recognize them as the company that supplies your electricity. They are the parent company of Georgia Power, Alabama Power and Mississippi Power. Something else that may come to mind is, "Why are my bills so high?" right? Let’s examine one hidden cost many of us may not know about. Southern Company’s pipelines

Southern Company (SoCo) owns and operates several natural gas pipelines across Alabama, Georgia, and Mississippi, along with a landfill gas pipeline in Tennessee. Among Southern Company subsidiaries are the following natural gas providers:

• Southern Company Gas

• Atlanta Gas Light

• Chattanooga Gas

• Nicor Gas

• Virginia Natural Gas

As we become increasingly dependent on digital technology, our reliance on electricity to power these devices also grows. Add to that the electricity demand required to run data centers across the Southeast region. Demand is expected to grow exponentially due to increasing computing needs related to AI and cryptocurrency.

So, how exactly does this affect your bill? Let's dive into it.

1. The ever-fluctuating cost of fuel: Southern Company uses natural gas to generate electricity. And as the price of natural gas fluctuates, so do our electricity rates. As rates increase, these costs are passed onto us, the consumers.

2. Transportation of natural gas: Although Southern Company owns its pipelines, it sometimes enters into contracts with other pipeline companies to ensure access to its supply. Referred to as "firm transportation contracts," once entered into, the cost of these contracts will be reflected in our bill, whether they use the service or not.

3. Investments in infrastructure: Southern Company continues to invest in infrastructure to support its pipelines. These investments include the maintenance of aging pipelines, as well as modernization and expansion projects aimed at improving reliability while meeting increased demand. This is yet another cost that is passed on to consumers.

4. Increase demand: As our demand for electricity increases, as more and more data centers and AI-dependent technology grow, Southern Company needs to ensure they have sufficient natural gas to generate electricity and maintain reliability to its grid. ¹

5. Maintaining their profits: Above all else, Southern Company aims to ensure it generates a profit for itself and its shareholders.

During its 2025 Shareholder Meeting, Southern Company CEO, Chris Womack, stated the following - "Our teams continue to put our customers and communities first throughout the year, delivered on our commitments and demonstrated superior performance across all parts of our business. We delivered strong financial results, advanced our energy portfolio, saw our opportunities to run more efficiently, executed a historic storm response, and more, all while staying intently focused on our values and our culture."

While our communities struggle with substantial increases in their energy bills, CEOs of private and investor-owned utility companies, such as Southern Company, continue to receive record payouts. Tom Fanning, who retired as CEO of Southern Company in May 2023, received a total compensation of $33 million, making him the top earner in 2023. Current CEO Chris Womack ranked fourth with over $23 million.

We hope that this information provides insight into Southern Company and its pipelines, and that it was helpful. Arm in Arm’s goal is to draw a direct correlation between Southern Company’s infrastructure and its billing practices. So, the next time you find yourself asking, "Why are my bills so high?" you'll have a better understanding of how the money flows. ²

To learn more about Arm in Arm and our campaign for utility justice and transparency against Southern Company, as well as how you can get involved, please visit our website.

For a behind-the-scenes look at Arm in Arm in action, check out our award-winning documentary “Exposing the Unspoken: Behind the Power 4 Southern People NOT Southern Company Movement.” Watch the trailer below.

1. SOUTHEAST ELECTRIC BILLS ARE PAYING FOR A HIGHWAY TO EXPORT GAS, Shelley Robbins, Southern Alliance for Clean Energy, February 2025 https://www.cleanenergy.org/wp-content/uploads/Highway-to-Export-_FINAL-PDF-2.pdf

2. As Customers Struggled, Utility CEOs’ Pay Spiked Last Year, Itai Vardi and Matt Kasper, July 18, 2024 https://energyandpolicy.org/as-customers-struggled-utility-ceos-pay-spiked-last-year/