House Bill 403 Alabama 2026 Session

Summary

Primary Sponsor

Neil RaffertyRepresentative

Democrat

Session

2026 Regular Session

Title

Electric Utilities; review by Public Service Commission of certain contracts with large load data centers further provided for

Summary

HB403 would require the Public Service Commission to review contracts between utilities and large load data centers to ensure the contracts allow recovery of incremental costs and deliver benefits to other utility customers.

What This Bill Does

If passed, the PSC would evaluate contracts with large load data centers (defined as at least 150 MW) to confirm that pricing and terms enable the utility to recover incremental costs caused by the data center and to promote benefits for other customers. The bill defines incremental costs as additional generation, transmission, distribution, sale, or furnishing costs that would not exist without the data center contract, including fuel and taxes. The PSC would also consider whether the contract could lower costs for other residential, commercial, and industrial customers and whether it would improve the utility's overall power system efficiency. The act would take effect October 1, 2026.

Who It Affects

• Large load data centers (and the utilities serving them) by facing new PSC review requirements and potential cost-recovery terms.
• Other utility customers (residential, commercial, and industrial) who could see changes in cost or reliability due to contract terms and any efficiency improvements.

Key Provisions

• Adds Section 37-4-22.1 to require PSC to review retail electric service contracts with large load data centers under public-interest standards and to ensure the contract supports incremental cost recovery and benefits to other customers.
• Defines incremental costs, large load data center (≥150 MW and meeting data processing center definition), and contract terms and conditions for purposes of such reviews.
• Requires contract pricing and terms to provide for recovery of incremental costs from the data center and to promote positive benefits to other customers, with consideration of whether pricing could lower costs for others and whether the data center improves the utility's power system.
• Effective date set for October 1, 2026.

AI-generated summary using openai/gpt-5-nano on Feb 12, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Telecommunications & Utilities