Alabama lawmakers who say they want to rein in generous tax breaks for data centers and make sure these massive electricity users don’t stick other customers with higher bills introduced a 3-bill package Thursday they say will accomplish those goals.
) - Alabama lawmakers who say they want to rein in generous tax breaks for data centers and make sure these massive electricity users don’t stick other customers with higher bills introduced a three-bill-package Thursday, Feb.
5. They say this bill package will accomplish those goals. Three bills introduced in the Alabama Senate would overhaul how the state regulates utilities and hands out tax incentives to data centers, with the goal of protecting everyday ratepayers from footing the bill for big tech companies. Senate Bill 270, sponsored by Sen. Bell, would force utilities to make large data centers pay for the extra costs they create. The bill targets facilities that use at least 150 megawatts of electricity — enough to power about 112,000 homes.would have to make sure these deals actually help other customers, not hurt them. That means looking at whether the data center’s rates could bring down costs for everyone else or make the power grid run more efficiently.Senate Bill 268 would end elections for Public Service Commission seats and let political leaders pick commissioners instead. Starting in 2028, the governor would appoint the commission president. Two years later, the House Speaker and Senate President Pro Tempore would each pick an associate commissioner. The Senate would have to confirm all appointments. The bill also cracks down on conflicts of interest, expanding restrictions beyond just utility companies to include any organization with business before the commission. It would also stop utilities from passing lobbying costs on to customers. “Alabama Power is so scared of voters that they are trying to take you out of the equation completely,” said Energy Alabama’s Executive Director Daniel Tait said in a press release. “If the Alabama Power Grab passes, the public loses oversight and the utility gains insulation once and for all. That is the whole point.”Senate Bill 265 takes aim at Alabama’s most generous tax incentives for data centers. Right now, the biggest projects can get tax breaks for up to 30 years. This bill would cap that at 20 years for any deals made after Jan. 1, 2027. The legislation also makes large data centers — those using 100 megawatts or more — start paying state sales taxes on their purchases. The governor could still waive this requirement for data centers in economically struggling counties.The bill extends when data center tax breaks expire, pushing the deadline from 2028 to 2032. However, money from the new sales taxes on big data centers would go to the state’s general fund instead of education funding. Alabama has landed several major data center projects recently, drawn by cheap electricity and generous tax breaks, but these facilities use enormous amounts of power, raising questions about whether other customers end up paying more for electricity. All three bills are now in the Senate Committee on Fiscal Responsibility and Economic Development. If passed, they would take effect at different times in 2026.Gov. Ivey sets execution date for man convicted in deadly 1991 robbery
Public Service Commisison Data Centers Utility Regulation WBRC WBRC 6 Fox 6 Myfoxal News Montgomery Montgomery Alabama Alabama Lawmakers Alabama Alabama Legislature Alabama Senate Bills Tax Breaks 3-Bill Package Tax Incentives Ratepayers Big Tech Companies Alabama Senate Bill 270 Senator Bell 150 Megawatts Of Electricity Alabama Public Service Commission Alabama Senate Bill 268 Commission President Alabama Public Service Commission President House Speaker Senate President Pro Tempore Alabama Public Service Commission Associate Commis Consumer Group Energy Alabama Alabama Power Alabama Power Grab Alabama Senate Bill 265 Economically Struggling Counties Data Center Tax Breaks Data Center Projects Alabama General Fund Alabama Education Fund Alabama Senate Committee On Fiscal Responsibility Electricity
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