PSC approves new procedure for evaluating data center contracts
The Alabama Public Service Commission unanimously approved a procedure for evaluating Alabama Power contracts with large-load data centers requiring at least 150 megawatts. The procedure requires a commission vote within 90 days, but contracts are automatically approved if the PSC does not act, while adding reporting and transparency requirements.
The Alabama Public Service Commission adopted a new process for reviewing Alabama Power contracts with data centers requiring at least 150 megawatts of electricity. Commissioners are expected to vote on each contract within 90 days of submission; if they fail to act, the contract will be deemed approved. The procedure does not require a public hearing for proposed contracts.
The rules require Alabama Power to publicly identify the data center, its maximum electric capacity and its municipality or county, while submitting full contracts and cost-impact information confidentially to the PSC and Alabama attorney general. Alabama Power said customers will be required to cover the full cost of serving their energy needs. Energy Alabama and the Southern Environmental Law Center welcomed the transparency provisions but criticized automatic approval without a public vote.