MONTGOMERY, Ala. (AP) — Alabama Power Co. customers are going to see their rates drop on 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 a month will pay $120.77.

The decrease stems in part from declining prices for natural gas and coal that Alabama Power uses to run its generating plants.