Alabama Public Service Commission to Revise Data Center Regulations Amid Competitive Elections
The Alabama Public Service Commission (PSC) plans to update regulations governing contracts between power companies and data centers to protect ratepayers. New rules are anticipated by October 1, 2026, aimed at ensuring that local customers do not bear the costs associated with the power demands of large data centers.
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The Alabama Public Service Commission is in the process of revising regulations regarding contracts between power suppliers and large customers, primarily data centers. Currently, the PSC has a 10-day window to review these contracts, a timeline deemed insufficient given the increasing complexity of agreements.
Proposed changes aim to prevent costs from data centers from being shifted to smaller consumers. The commission plans to finalize new regulations by October 1, 2026, following public input. Alabama Power has stated it requires large customers to bear their full service costs.
Legislative changes have expanded the PSC from three to seven members and frozen electric rates through 2029, reflecting a shift towards increased oversight. Upcoming elections could influence the commission's direction, highlighting the need for balancing utility profitability with consumer protection.
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