Lawmakers aim to address affordability with restrictions on data centers, changes to utility governance

MONTGOMERY, Ala. – A new three-bill package in the Alabama Legislature would overhaul the structure of the Public Service Commission, control the proliferation of power-hungry data centers and add new restrictions on lobbying and public meetings for state utilities.

The bi-partisan group of lawmakers bringing the bills say their goal is to address affordability for families, specifically in the form of rising electricity bills.

“Alabama families and businesses should never foot the bill for someone else’s private profit,” Sen. Lance
Bell, R-Pell City, said in a news release. He’s chairman of the Senate Committee on Fiscal Responsibility and Economic Development and sponsor of Senate Bill 270, which would require data center operators to pay the full cost of grid infrastructure upgrades needed for their projects. State Rep. Neil Rafferty, D-Birmingham, is sponsoring the House version of the measure, House Bill 403.

“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,” Rafferty said.

Another measure targeting data center development is Senate Bill 265 from State Sen. Andrew Jones, R-Centre, and House Bill 399 from State Rep. Leigh Hulsey, R-Pelham. It would alter Bentley-era tax incentives for data centers that are seen by many as too generous and long-lasting. The bills would require large data centers using more than 100 megawatts to pay state sales taxes and cap at 20 years any abatement incentives agreed to by the state.

Jones said the goal is to stop data centers from taking advantage of out-dated economic incentives and driving up power costs where they locate.

“We need incentives that work for all Alabamians—not just big tech,” Jones said. “This bill ensures that taxpayer-supported incentives deliver real value to our state and don’t drive up utility costs for hardworking Alabamians.”

Also, the revenue generated by data center sales taxes would go to the state’s General Fund, rather than the Education Trust Fund. The General Fund has historically faced greater financial struggles because most growth tax revenue is steered to the ETF.

The third measure in the “affordability protection plan” would make the Public Service Commission, the three-member panel that regulates state utilities, appointed rather than elected. Specifically, the president would be appointed by the governor, one member would be appointed by the Speaker of the House and one would be appointed by the Senate President Pro Tem, with all members requiring Senate confirmation.

Senate Minority Leader Bobby Singleton, D-Greensboro, said the appointed model is preferred in today’s political environment dominated by special interests.

“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,” Singleton said.

That legislation – Senate Bill 209 and House Bill 392 – would also institute new regulations for state utilities, including Alabama Power Company. It would mandate that utilities hold annual public meetings to present rates, costs and other factors impacting customers. It would also prohibit utilities from spending rate-payer money on lobbying expenses or any other political activity.

Rep. Chip Brown, R-Hollinger’s Island, is sponsoring that bill in the House.

“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,” Brown said.

The Alabama Legislature’s 2026 Regular Session is one third of the way complete, with 20 more legislative days remaining.

The House bills are set to be taken up by the House Transportation, Utilities and Infrastructure Committee at 11:00 a.m. on Tuesday, Feb. 10.

The Senate bills have been referred to the Fiscal Responsibility and Economic Development Committee, which meets Wednesday, February 11 at 3:00 p.m.

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Mobile County wants to buy out some homeowners in Theodore area

MOBILE, Ala. (WALA) - Mobile County officials say the best solution for chronic flooding in an area along Bellingrath Road is to move – and the county wants to help homeowners do so.

The county received Department of Housing and Urban Development funds after Hurricanes Sally and Zeta in 2020 and selected about 50 homes south of Mobile for voluntary buyouts. The county is continuing outreach efforts and plans to open the program up to applications in the next few weeks.

Gordon Bauer, the county’s director of grants, said the budget is about $2 million, with some flexibility to expand that if interest proves strong.

The houses that qualify are on Thomas Drive, Clyde Drive, Mardanne Drive and Carolyn Way. Bauer said the county picked them based on flood data and feedback from the Public Works Department.

“And this is one of the really big hotspots, and there’s no alternative solution because of the topography of the area, the way that the drainage works there,” he said. “So this was identified as kind of the only solution for that problem.”

The federal money has restrictions. The program must target low-income areas. That rules out many waterfront properties in higher-income neighborhoods.

If someone is interested in selling, Bauer said the county will conduct an independent appraisal and pay fair market value. Homeowners who stay in Mobile County can get an additional $25,000 or $10,000, depending on income thresholds.

Reaction has been split.

“Money talks,” said Richard Payne, an 89-year-old Mardanne Drive resident who owns five properties in the neighborhood.

He said he is willing to listen to the county but is curious about the fair market value description.

“I don’t know what that is, though, see?” he said. “I bought but I never sold nothing here.”

Rick Watson, who has lived on and off for 69 years in the home his parents first had on Mardanne Drive, said he is open to selling – but not because of flooding.

“Why? Just because of the area, you know,” he told FOX10 News. “It just went downhill over the years. It’s like I said, it used to be a nice, safe place, but it’s – you hear gunshots. You know how it goes, you know. The neighborhood went down. Houses are all blocked. They get cold in the wintertime. It’s hard to keep them heated.”

Some residents questioned how bad the flooding really is. John Richardson, who has rented his home on Mardanne Drive for close to 10 years, said Hurricane Sally caused some structural damage. But he said the house has never flooded.

“This area doesn’t flood that bad,” he said. “You know, heavy rain, it’s pretty much like any neighborhood, it’s gonna collect some water. But there’s other places in town that collect a lot more water than this area does.”

Margaret Box, who lives on Thomas Drive, said her house has been water-free for as long as she has owned it. She said flooding certainly is a problem in the road, but she suggested it would be less expensive to fix the drainage.

“Pretty much anytime it rains,” she said, describing how water swooshes past her property. “Really heavy, for sure. But if it rains, it’s puddling right there. … Our land is very marshy, so it holds water for days after it rains.”

Bauer said the county plans to tear down any houses it acquires and put in detention ponds and other features that will reduce flooding for residents who remain.

But Box said she has no interest in selling.

“We have the best neighbors, and we’re totally happy here,” she said.

Betty Sue Milburn said she also does not want to sell a home where she has lived for 22 years. Like many of her neighbors, she said excess water never has made it inside her house.

“I’ve never flooded,” she said. “And I’m at the dead-end of Thomas,” she said.

Read more : Mobile County wants to buy out some homeowners in Theodore area