Alabama data center rules draw transparency concerns

What Alabama changed

The Alabama Public Service Commission has adopted new rules for contracts between Alabama Power and large data centers. Commissioners approved the framework 3-0 earlier this month, and the commission issued its final order this week.

Alabama Power filed a new tariff Wednesday setting out the process. The rules are scheduled to take effect Nov. 23.

The previous rules treated large, power-intensive data centers like other major industrial operations. Under the new framework, unredacted copies of contracts with new data center developments must be delivered to the Public Service Commission and the Alabama attorney general’s office.

Alabama Power said large data center customers will continue to be responsible for the full cost of serving their electricity needs so those costs are not shifted to existing customers. The utility also said state law applies that standard and that the commission approves contracts meeting it.

Why critics want more disclosure

Groups following the commission’s action generally view the new process as an improvement but say it does not give customers enough information about costs and protections.

Jaclyn Brass, an attorney in the Southern Environmental Law Center’s Alabama office, said additional safeguards are needed to prevent customers from paying for data center expansion. She also called for greater transparency and accountability in Alabama Power regulation.

Monika Gerhart of the Gulf States Renewable Energy Industries Association said the most important figures remain secret. The concern is that regulators receiving complete contracts does not allow customers to independently examine the financial terms that determine whether costs could reach their bills.

The rules arrive as developers pursue large projects, including Project Marvel, whose developer has requested rezoning for additional agricultural land in southwest Bessemer.