MONTGOMERY — A bipartisan coalition of Alabama legislators in both the House and Senate unveiled on Thursday the Alabama Affordability Protection Plan — a three-bill reform package including data center legislation and changing the Public Service Commission (PSC) to an appointed entity.
The bill sponsored by Senate Minority Leader Bobby Singleton (D-Greensboro) and State Rep. Chip Brown (R-Hollinger's Island) would make the PSC appointed rather than elected. A similar plan to make the State Board of Education appointed failed soundly in 2020.
The bill mandates annual public meetings at which regulated utilities must present to the public and the commission on their rates, costs, and other factors affecting the state and its customers. Under the bill, the three Public Service Commission seats would no longer be elected and would be transitioned over time to a model in which members are appointed by the Governor, the House Speaker, and the Senate Pro Tem and confirmed by the Alabama Senate.
Appointment-based systems are used in 40 states around the country. It also prohibits consumers' money from being used to fund lobbying expenses and political activity.
"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."
Brown said, "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."
The legislation has already drawn some opposition.
Cullman County Sheriff Matt Gentry, a candidate for PSC Place 2, told 1819 News, "I think democracy closest to the people is the best form of government."
"As an elected sheriff for 11 years, I know personally how public officials have to be held accountable to the people they serve by hearing citizens' concerns. I fear by appointing, rather than electing, Public Service Commissioners would only make the PSC further out of touch with Alabama consumers," Gentry said.
Energy Alabama, a clean energy advocacy group often critical of Alabama Power and the PSC, said in a statement, "This is a power grab by Alabama Power. It is an attempt to shut out the public and insulate monopoly utility regulation from the people who pay the bills."
"Alabama Power is so scared of voters that they are trying to take you out of the equation completely," said Daniel Tait, Executive Director of Energy Alabama. "If the Alabama Power Grab passes, the public loses oversight and the utility gains insulation once and for all. That is the whole point."
According to a press release, another bill included in the Alabama Affordability Protection Plan prohibits cost shifting from data centers to Alabama businesses and families, sponsored by State Sen. Lance Bell (R-Pell City) and State Rep. Neil Rafferty (D-Birmingham).
The bill would require data centers to pay the full cost of any grid or infrastructure upgrades needed for their operations.
"Alabama families and businesses should never foot the bill for someone else's private profit," said Bell in a statement. "This bill ensures fairness and transparency in our energy system."
Rafferty said, "Alabama families come first."
"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," he added.
The second bill would replace data center incentives to "align with other businesses and industry," sponsored by State Sen. Andrew Jones (R-Centre) and State Rep. Leigh Hulsey (R-Helena).
The bill would limit the maximum exemption period for abatements available for data processing centers to 20 years beginning Jan. 1, 2027, would require data processing centers to pay state sales and use taxes on purchases made by certain large data processing centers beginning Jan. 1, 2027, and provide for the distribution of proceeds from the taxes, and would extend the sunset date for data processing center abatements.
"We need incentives that work for all Alabamians—not just big tech," said Jones. "This bill ensures that taxpayer-supported incentives deliver real value to our state and don't drive up utility costs for hardworking Alabamians."
Hulsey said, "This bipartisan legislation is designed to deliver real results for Alabamians."
"We must grow our economy and protect our citizens at the same time," Hulsey said.
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