A Bipartisan Push to Protect Ratepayers

February 5, 2026 - The Alabama Legislature is moving forward with one of its most sweeping bipartisan energy‑oversight efforts in years, unveiling a three‑bill package aimed at protecting consumers, strengthening regulatory integrity, and ensuring that Alabama families are not forced to subsidize private development. The Alabama Affordability Protection Plan, announced February 5, 2026, brings together Republicans and Democrats in both chambers around a shared goal: keeping energy costs stable and transparent while modernizing how the state oversees utilities.

Alabama's economic growth has long been tied to its comparatively low and stable energy prices. Legislators behind the plan argue that this advantage is at risk as large‑load energy users-particularly data centers-seek to expand in the state. Without new guardrails, they warn, Alabama families and small businesses could end up paying higher utility bills to cover the infrastructure demands of private corporations.

The Affordability Protection Plan sets a clear principle: existing customers should not subsidize private profit, and utility regulation must be grounded in transparency, accountability, and measurable public benefit.

The package includes three bills, each targeting a different aspect of energy policy: cost‑shifting, economic incentives, and regulatory oversight.

Bill 1: Preventing Cost Shifting to Families and Small Businesses

Sponsored by Sen. Lance Bell (R‑Pell City) and Rep. Neil Rafferty (D‑Birmingham)

The first bill directly addresses one of the fastest‑growing concerns in energy policy: the strain that large data centers place on the electrical grid. These facilities require massive infrastructure upgrades-costs that, under current rules, can be passed on to everyday ratepayers.

The bill requires that data centers pay the full cost of any grid or infrastructure upgrades needed for their operations, ensuring that Alabama families and small businesses are not saddled with higher bills.

"Alabama families and businesses should never foot the bill for someone else's private profit," Sen. Bell said. As chair of the Senate Committee on Fiscal Responsibility and Economic Development, Bell framed the bill as a matter of fairness and transparency.

Rep. Rafferty echoed that message: "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."

Bill 2: Reforming Data Center Incentives

Sponsored by Sen. Andrew Jones (R‑Centre) and Rep. Leigh Hulsey (R‑Helena)

The second bill reworks how Alabama handles economic incentives for data centers. While the state has historically offered generous packages to attract major tech investments, lawmakers now argue that incentives must be tied to real, measurable public benefits-not just corporate expansion.

Under this bill, data center incentives would be aligned with those offered to other industries, ending what some legislators describe as preferential treatment. Any recovered incentive dollars would be reinvested directly into local communities.

"We need incentives that work for all Alabamians-not just big tech," Sen. Jones said. He emphasized that incentives should strengthen the state's economy without driving up utility costs.

Rep. Hulsey added that the bipartisan nature of the legislation reflects a shared commitment to "deliver real results for Alabamians" while balancing growth with consumer protection.

Bill 3: Overhauling Utility Oversight and Reducing Special‑Interest Influence

Sponsored by Sen. Bobby Singleton (D‑Greensboro) and Rep. Chip Brown (R‑Hollinger's Island)

The third bill is the most structural of the package, proposing a major overhaul of the Alabama Public Service Commission (PSC)-the body responsible for regulating utilities and setting rates.

Key provisions include:

Depoliticizing the PSC by shifting from statewide elections to an appointment‑based system

Appointments made by the Governor, House Speaker, and Senate Pro Tem, with Senate confirmation

New qualifications for commissioners to ensure expertise in energy, economics, or consumer protection

Annual public meetings where utilities must present data on rates, costs, and operational factors

A ban on using ratepayer money for lobbying or political activity

Sen. Singleton, the Senate Minority Leader, said the goal is to make the PSC accountable to consumers rather than campaign donors.

"Alabama is one of only ten states in the country that still elects its PSC," Singleton noted. "It is time to modernize how we set utility rates and double down on the oversight we have on this board."

Rep. Brown emphasized that the reforms are designed to restore trust at a time when energy policy is becoming more complex and more critical to economic development.

"This legislation restores trust in utility oversight and ensures Alabama residents are protected from political or outside influence," Brown said.

A New Era of Energy Accountability

The Alabama Affordability Protection Plan represents a rare moment of bipartisan alignment on a major regulatory issue. Legislators from both parties argue that the package is not anti‑development but pro‑consumer, ensuring that Alabama remains competitive while protecting the people who ultimately pay the bills.

The plan's supporters say it will keep Alabama's energy prices below the national average, strengthen public trust in utility regulation, and ensure that economic development incentives deliver tangible benefits.

As the bills move through the Legislature, the debate will likely center on how Alabama balances growth with fairness-and whether the state's longstanding approach to utility oversight is due for the modernization lawmakers now propose.