Public Service Commission opens public comment about how it should evaluate data center contracts
The Alabama Public Service Commission (PSC) has unanimously voted to open a public comment period regarding new procedures for evaluating large load data center contracts. This move follows a new state law requiring data centers to bear their own electricity costs and demonstrate public benefits. The PSC aims to establish specific criteria and methodologies for these complex contracts, which are currently reviewed under an outdated system.
The Alabama Public Service Commission (PSC) has initiated a public comment period to establish new procedures and standards for reviewing large load data center contracts with Alabama Power Company. The unanimous decision by the utility regulatory board on Tuesday aims to address the growing presence of energy-intensive data centers in the state.
This action comes in response to new legislation passed by the Alabama Legislature earlier this year. Senate Bill 270, sponsored by Sen. Lance Bell, R-Riverside, mandates that data centers, rather than other utility customers, pay for their significant electricity demands. The law also requires data centers to demonstrate