AlabamaCommission would review power contracts for very large data centers
Starting October 1, 2026, the commission would review power contracts for very large data centers to see whether they cover added costs and benefit other utility customers.
What it does
The commission would review utility contracts with very large data centers to decide whether their expected terms cover added service costs and bring benefits to other customers.
Argument forOther customers could be protected if contracts make data centers cover added service costs and bring lower costs, better system efficiency, or local growth.
Argument againstOther utility customers could face uncertain effects if the commission approves a data center contract based on expected benefits that may not occur.
More detail
The commission would judge whether a utility's contract with a qualifying data center serves the public interest by reviewing its expected costs and benefits. This applies to retail electric service contracts between utilities and data centers that have contracts requiring at least 150 megawatts of expected peak power at one or more neighboring sites and operate only for data processing. The commission considers whether the contract's pricing and terms are expected to make the data center cover the added costs of serving it and promote positive benefits for other utility customers. Possible benefits include lower costs for other customers, a more efficient power system, or local economic growth. The act takes effect October 1, 2026.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Apr 17EnactedBecame Law
- Apr 9EnrolledTo Governor
- Apr 9Delivered to GovernorMinor
- Apr 9Signature Requested
- Apr 8Third Reading in Second House
- Vote recorded Gudger Motion to Concur In and Adopt House Amendment - Adopted Roll Call 1258. Result: pass.Upper
- Vote recorded Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 1323. Result: pass.Lower
- Vote recorded Motion to Adopt - Adopted Roll Call 1322. Result: pass.Lower
- Apr 8Rafferty 1st Amendment OfferedMinor
- Apr 8Motion to Adopt - Adopted Roll Call 1322Major
- Apr 8Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 1323Passed House
- Apr 8Gudger Motion to Concur In and Adopt House Amendment - Adopted Roll Call 1258Major
- Apr 8Ready to Enroll
- Mar 17Reported Out of Committee Second House
- Mar 17Read for the Second Time and placed on the Calendar (Transportation, Utilities and Infrastructure)Minor
- Mar 12Third Reading in House of Origin
- Vote recorded Motion to Read a Third Time and Pass - Adopted Roll Call 853. Result: pass.Upper
- Vote recorded Third Reading in House of Origin. Result: pass.Upper
- Mar 12Motion to Read a Third Time and Pass - Adopted Roll Call 853Passed Senate
- Mar 12Read for the first time and referred to the House Committee on Transportation, Utilities and InfrastructureMinor
- Mar 12Pending Committee Action in Second House (Transportation, Utilities and Infrastructure)
- Feb 12Read for the Second Time and placed on the Calendar (Fiscal Responsibility and Economic Development)Minor
- Feb 11Reported Out of Committee House of Origin
- Feb 5Read for the first time and referred to the Senate Committee on Fiscal Responsibility and Economic DevelopmentMinor
- Feb 5Pending Committee Action in House of Origin (Fiscal Responsibility and Economic Development)Introduced
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