HB120 Alabama 2015 Session

Summary

Primary Sponsor

Randy Davis

Republican

Session

Regular Session 2015

Title

Electric utilities, transmission facilities, existing suppliers authorized to construct add'l facilities connecting with other electric suppliers, appeals of disputes, Energy Security Act of 2015, Sec. 37-4-150 added

Summary

The bill would give incumbent Alabama electric utilities the right to build and operate new transmission facilities to expand their networks, with disputes over these rights decided in circuit court.

What This Bill Does

If passed, the bill creates a framework that lets incumbent electric suppliers construct, own, operate, and maintain new transmission facilities and upgrades that connect to their systems. If a facility connects to more than one incumbent, each supplier gets a proportional right to that facility unless they have a written agreement. Utilities cannot waive these rights without a waiver order from the Alabama Public Service Commission, and disputes between incumbents over these rights can be taken to the circuit court for resolution.

Who It Affects

• Incumbent electric suppliers: gain the right to construct, own, operate, and maintain new transmission facilities and upgrades that connect to their systems; rights for facilities shared with other incumbents are allocated proportionally; disputes may be resolved in circuit court; waivers require PSC approval.
• Non-jurisdictional electric suppliers: are not granted new rights by this act and are not subject to the act’s provisions in the same way; the act explicitly states it does not apply to them beyond existing law.
• Alabama Public Service Commission (regulator): oversees waiver approvals and the process; can authorize waivers and is involved in the regulatory framework surrounding these rights.
• Retail electric customers (end users): could experience changes in the transmission network that serves them as incumbents expand and maintain facilities, though the bill focuses on utility rights rather than customer terms.

Key Provisions

• Adds Article 7 to Chapter 4 of Title 37 to establish that incumbent electric suppliers have the right to construct, own, operate, and maintain new transmission facilities and upgrades for their own electric systems, and to address connections to multiple incumbents.
• Defines key terms: Commission, Electric Transmission Facility (design voltage > 35,000 volts), Incumbent Electric Supplier, Non-Jurisdictional Electric Supplier, and Utility.
• Allows two or more incumbents to have rights to a facility that connects to their systems, allocated individually and proportionally unless there is a written agreement to the contrary.
• Requires waivers of the right to be authorized by the Alabama Public Service Commission; a waiver cannot be granted unilaterally by a utility.
• Provides that disputes between incumbent suppliers about these rights can be brought to the circuit court for resolution, including determination of disputed matters and venue.
• Specifies that the act does not subject non-jurisdictional suppliers to PSC jurisdiction, does not broaden non-utility rights beyond what is stated, and does not apply to facilities owned by nonutilities.
• Effective date: becomes law on the first day of the third month after its passage and governor approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Utilities