Public Service Commission approves review process for Alabama Power, data centers
The Alabama Public Service Commission unanimously approved a new public review process for large electricity contracts between Alabama Power and data centers. The process requires disclosure of project details and projected power use, with the commission allowed 90 days to approve or reject each agreement.
The Alabama Public Service Commission approved a new process requiring Alabama Power to publicly disclose basic information about proposed data center electricity contracts, including facility locations, customer identities and maximum power consumption. Confidential contract terms and supporting analyses will be filed with the commission and the Alabama Attorney General's Office. Commissioners must vote within 90 days of a filing or the agreement will be automatically approved.
The policy follows state legislation allowing regulators to consider data centers' economic effects on communities and the cost of serving them. Commission President Cynthia Almond said public votes were important because of the facilities' scale and energy use. Environmental and renewable-energy groups, including the Southern Environmental Law Center and Energy Alabama, welcomed increased transparency but criticized the automatic-approval provision and the commission's decision not to require votes on every contract. Alabama Power said it would comply with state law and require large data center customers to cover their full service costs.