AL HB403

Requires the Alabama Public Service Commission to apply specific criteria when reviewing retail electric service contracts between utilities and large load data centers (defined as customers requiring at least 150 megawatts of electric load)

Mandates that contracts must recover all incremental costs of serving the data center—including generation, transmission, distribution, fuel, and taxes—directly from the data center customer rather than other ratepayers

Requires contracts to promote positive benefits for other residential, commercial, and industrial utility customers, such as lowering costs or increasing power system efficiency

Defines contract terms and conditions to include minimum contract length, upfront payments, security/collateral requirements, and minimum payment obligations

Effective date: October 1, 2026