Senate Bill 270 Alabama 2026 Session

Summary

Primary Sponsor

Lance BellSenator

Republican

Session

2026 Regular Session

Title

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

Summary

SB270 would require the Public Service Commission to review and approve electric service contracts with large load data centers by ensuring they recover incremental costs and benefit other utility customers.

What This Bill Does

It adds a new section (37-4-22.1) that defines incremental costs, large load data centers, and contract terms. When the PSC determines a contract between a utility and a large load data center is in the public interest, the contract pricing and terms must include recovery of incremental costs attributed to the data center and must promote benefits for other utility customers. The bill directs the PSC to consider factors such as whether the contract could lower costs for other customers, improve the efficiency of the power system, and support local economic growth. The act takes effect on October 1, 2026.

Who It Affects

• Large load data centers (≥150 megawatts) that enter retail electric service contracts with utilities; they would be subject to contract terms that provide for recovery of incremental costs attributable to their operation.
• Other retail electric customers of the utility; they could benefit from the contract if the PSC finds it lowers costs, improves system efficiency, or supports local economic growth.

Key Provisions

• Adds Section 37-4-22.1 to define incremental costs, large load data centers, and terms/conditions for contracts.
• Requires PSC review/approval of retail contracts with large load data centers to ensure pricing/terms allow recovery of incremental costs and promote benefits to other customers.
• Specifies factors the PSC may consider in determining public interest: potential to lower costs for other customers, increased efficiency of the power system, and promotion of local economic growth.
• Sets effective date of October 1, 2026 and defines the data center threshold (≥150 MW and meeting the data processing center definition in Section 40-9B-3).

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