The Alabama Public Service Commission met on November 4 and while most of the agenda was routine, there were a few items worth flagging. Here’s a quick rundown of what the Commission covered and why it matters for people watching utility issues in the state.

Gas, Pipeline & Electricity Policy Review

PSC staff reviewed Spire Alabama and Spire Gulf’s monthly financial performance. Both utilities fell within their authorized ranges, resulting in no rate adjustments. Staff also summarized routine pipeline safety inspections, with no policy changes or filings that would materially affect stakeholders.

PSC staff reported that Alabama Power’s projected return on retail common equity is 6.56%,  and the company recorded about $4 million in under-recovered energy costs in September. While routine, these indicators can shape future filings related to fuel cost adjustments.

The Commission also approved a contract for Alabama Power to supply process steam from its co-generation facility to SABIC in Burkville. Industrial agreements like this help support system efficiency and can influence the utility’s longer-term resource planning.

The Main Discussion: Data Centers in Alabama

Commission President Cynthia Lee Almond delivered an extended presentation on the rapid growth of data center development in Alabama and the Southeast. This was the most substantive portion of the meeting and signals growing attention to how large new loads will shape the region’s energy landscape.

Key themes from her presentation included:

• Cost protection for existing customers. Almond emphasized that data center projects must cover the costs associated with serving their load, including any transmission or generation additions that may be required.
  
  
• More rigorous contract terms. Alabama Power will be required to use minimum usage commitments, upfront cost recovery mechanisms, and other protections to prevent cost shifts if a project scales back.
  
  
• Increasing interest in Alabama. With Meta’s Montgomery facility in operation and a potential multi-building campus proposed in Bessemer, the state is preparing for a significant rise in data center load.

This discussion matters because large new loads can influence resource planning decisions, procurement strategies, and future transmission needs. These considerations will affect the trajectory of the state’s energy system overall.

The topic will continue next month when Alabama’s Secretary of Commerce briefs the Commission on statewide data center recruitment efforts.

Why This Meeting Matters

While much of the meeting was routine, the conversation about data centers points to major changes in Alabama’s long-term load growth. These projects have the potential to accelerate new generation needs, reshape transmission planning, and open new pathways for renewable energy development.

SREA will continue monitoring PSC discussions that affect generation planning, transmission build-out, and large-customer policies, and we will update members as these issues evolve.