Alabama lawmakers introduce major bipartisan package targeting data center costs, utility oversight

Alabama public service commission
(evening_tao/FreePik, YHN)

A group of Alabama legislators composed of leaders from both parties introduced a three-bill “Affordability Protection Plan” on Thursday aimed at addressing utility costs and oversight for the next wave of the state’s economic growth.

In a news release issued Thursday by the office of Alabama Senate Minority Leader Bobby Singleton (D-Greensboro), lawmakers who will usher the bills through the process beginning next week, spoke to the connected purpose of the proposals.

SB270, sponsored by State Sen. Lance Bell (R-Pell City), and carried in the House by State Rep. Neil Rafferty (D-Birmingham), would require data centers to pay the full cost of grid and infrastructure upgrades their operations require, preventing those costs from being passed to existing utility customers.

“Alabama families and businesses should never foot the bill for someone else’s private profit,” Bell said. “This bill ensures fairness and transparency in our energy system.”

“Alabama families come first,” Rafferty added. “We are making sure our state’s existing utility customers are taken care of and ensuring that energy costs remain fair and predictable for everyone.”

SB265, sponsored by State Sen. Andrew Jones (R-Centre), and carried in the House by State Rep. Leigh Hulsey (R-Helena), would reform data center incentives to require measurable public benefits consistent with other economic development incentives.

“We need incentives that work for all Alabamians—not just big tech,” Jones said. “This bill ensures that taxpayer-supported incentives deliver real value to our state and don’t drive up utility costs for hardworking Alabamians.”

“This bipartisan legislation is designed to deliver real results for Alabamians,” Hulsey said. “We must grow our economy and protect our citizens at the same time.”

SB268, sponsored by State Sen. Bobby Singleton (D-Greensboro) and State Rep. Chip Brown (R-Hollinger’s Island), would restructure the Public Service Commission from an elected body to an appointed one.

Under the bill, commissioners would be appointed by the Governor, House Speaker, and Senate Pro Tem, and subsequently confirmed by the Alabama Senate.

The bill would also mandate yearly public meetings where regulated utilities present on rates and costs, prohibit ratepayer funds from being used for lobbying or political activity, along with a range of added accountability measures.

“Our goal is simple: make the Public Service Commission accountable to Alabama families, not special interests,” Singleton said.

“Alabama is one of only ten states in the country that still elects its PSC, and it is time to modernize how we set utility rates and double down on the oversight we have on this board.”

“This legislation restores trust in utility oversight and ensures Alabama residents are protected from political or outside influence at a time when energy is more important and complex than it has ever been,” Brown said.

All three bills were referred to the Senate Committee on Fiscal Responsibility and Economic Development.

In a oU.S. Senator Tommy Tuberville (R-Auburn) weighed in on data center development in the state.

“These centers provide thousands of construction jobs, a lot of tax money to local communities. However, Alabama, the families in this state, should not have to pay higher power bills because of big moves to take advantage of our resource,” Tuberville said. “They need to be on the hook for their own power and eating that cost where they can.”

He added: “We need to grow in the state of Alabama, but not on the backs of the people that are paying these high energy prices.”

Thursday was day 10 of the legislative session. There are 20 legislative days remaining.

Sawyer Knowles is a capitol reporter for Yellowhammer News. You may contact him at [email protected].