Alabama § 37-4-22.1

§ 37-4-22.1.

(a) For purposes of this section, the following terms have the following meanings:

(1) INCREMENTAL COSTS OF RETAIL ELECTRIC SERVICE. The additional costs associated with the generation, transmission, distribution, sale, or furnishing of electricity to a large load data center customer, including fuel costs and taxes, which the utility would not incur but for the large load data center customer contract.

(2) LARGE LOAD DATA CENTER CUSTOMER. A customer of the utility which has executed a contract for retail electric service with the utility which requires the utility to serve an expected total peak demand of 150 megawatts or greater at one or more contiguous parcels of land, meets the definition of a data processing center under Section 40-9B-3, and operates solely for the purpose of data processing.

(3) TERMS AND CONDITIONS. The provisions in a contract for service between a customer and utility which address matters such as minimum term for contract length, upfront payments, security and collateral, and minimum payment.

(b) Consistent with the commission’s authority under Title 37 generally and Section 37-4-22 specifically, a contract for retail electric service between a utility and a person that qualifies as a large load data center customer is consistent with the public interest where the commission determines that the contract pricing and contract terms and conditions over the contract term are expected to:

(1) Provide for the recovery of the incremental costs of retail electric service to the large load data center customer’s premises from the large load data center customer; and

(2) Promote positive benefits to other retail electric customers of the utility.

(c) The determination of whether a contract between a large load data center customer and a utility promotes positive benefits under subdivision (b)(2) includes considerations such as:

(1) Whether the pricing and terms and conditions of the contract could lower costs for other customers of the utility;

(2) Whether the large load data center customer is expected to increase the efficiency of the utility’s power system; and

(3) Whether the large load data center customer promotes or contributes to economic growth in the community where the premises of the large load data center customer is located.