The Alabama Public Service Commission has issued a final order setting new rules for data center electricity contracts, and Alabama Power filed a tariff this week that puts the process into practice. The new processes take effect Nov. 23.
Commissioners voted 3-0 for the framework at an earlier October meeting. Contracts between Alabama Power and new data center developments must be provided unredacted to the commission and to the Alabama Attorney General's office, which serves as the state's ratepayer advocate. Both have 90 days to confirm that each contract is consistent with the public interest and that the data center pays all costs, including new infrastructure and fuel.
A redacted public copy must list the data center's location, maximum capacity, and the company involved, including its parent company. Other key information, including rate impact test numbers, can still be withheld.
The commission must vote to approve or reject each contract within 90 days of receiving the application. If it takes no action, the contract is considered approved, and default approvals would be announced at the next commission meeting.
Monika Gerhart, executive director of the Gulf States Renewable Energy Industries Association, said the final rule delivered a good share of the transparency her group sought and objected to the confidentiality of the rate impact figures. Daniel Tait, executive director of Energy Alabama, welcomed the required vote and was disappointed by the deemed approval provision.
Alabama Power said it will continue to require large load data center customers to pay the full cost to serve their energy needs, which keeps those costs off existing customers' bills. A commission spokesman said the deemed approval provision was kept after public comments were considered.
Project Marvel, a proposed hyperscale data center, has a developer seeking rezoning of agricultural land in southwest Bessemer.
Source: Inside Climate News - https://insideclimatenews.org/news/23102026/alabamas-new-data-center-rules-still-leave-customers-in-the-dark-critics-say/