Alabama Power Approve Rate Freeze, Solar Power for Data Center

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MONTGOMERY, AL. — The Alabama Public Service Commission has approved a two-year rate freeze and large solar power projects for a proposed data center.

The Dec. 2 decision is intended to keep energy rates the same until 2028. Research shows that Alabamians pay some of the highest energy bills in the entire nation. Alabama Power also has one of highest returns on equity in the country, meaning this rate freeze simply locks in high profits for the utility. The PSC also approved two large-scale solar projects for Meta’s proposed data center in Montgomery. Meta has said the Montgomery data center will be 100% matched by clean energy.

In response, the Sierra Club released the following statements:

“Alabama residents already pay some of the highest energy bills in the nation. While a rate freeze may make headlines, this decision simply guarantees undeserved profits for Alabama Power for two years, when Alabama residents need actual long-term solutions to unaffordable, high energy bills. Alabamians already face some of the highest energy burdens in the country, and yet Alabama Power continues to make massive profits from dirty, expensive fossil fuel projects with almost no public input,” said Dave Rogers, Deputy Director of Sierra Club’s Beyond Coal Campaign. “The Alabama PSC must work to provide real, authentic relief for Alabama residents that not only protect their wallets, but their health and wellbeing. Building this first increment of solar power to support the Meta data center in Montgomery is a good first step, but all Alabama customers should be able to benefit from reliable, low-cost solar power. ”

“Alabama Power and the Alabama PSC expect us to celebrate a rate freeze, but have done nothing to increase public participation in PSC proceedings or tackle the corporate greed that has created the energy burden ratepayers deal with today,” said Kyle Crider, Birmingham resident and member of the Cahaba Group of the Sierra Club Alabama Chapter. “We’re pleased Meta is using clean energy for its data center, but the responsibility to push for renewable solutions to our state’s energy needs rests on the PSC and we will continue to fight to make these solutions a reality.”

About the Sierra Club: The Sierra Club is America’s largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person’s right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit www.sierraclub.org.