Bill > HB403

This bill amends Alabama law to further define how the Public Service Commission (PSC), the state agency that regulates utilities, reviews contracts between electric utilities and "large load customers," which are defined as customers requiring at least 100 megawatts of peak demand, such as large data centers. The bill clarifies that such contracts are considered in the public interest if the PSC determines that the pricing and contract terms, including minimum contract length and upfront payments, will allow the utility to recover the "incremental costs of retail electric service" – meaning the extra costs incurred specifically to serve that large customer, like fuel and taxes – from the large load customer. Additionally, the contract must be expected to benefit other retail customers by potentially lowering their costs or by the large customer improving the utility's power system efficiency. This act will take effect on October 1, 2026.

Transportation and Infrastructure

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