HB 403 Alabama House · 2026 Regular Session

Electric Utilities; review by Public Service Commission of certain contracts with large load customers further provided

HB 403 requires Alabama's Public Service Commission to review contracts between utilities and large data centers (defined as those with 150+ megawatts of load) and ensure these contracts recover the utility's additional costs (like fuel and taxes) caused by the data center. The Commission must also determine that the contracts promote benefits for other customers, such as lower costs or improved system efficiency for residential, commercial, and industrial users. This applies to data centers meeting the definition in Section 40-9B-3 of Alabama law and takes effect October 1, 2026. The bill does not change existing approval standards but adds specific criteria for these contracts.

Bill status passed 3 of 5 stages cleared

Introduction

Feb 2026

Committee Review

Feb 2026

House Passage

Mar 2026

Senate Passage

Governor

Introduced Feb 5, 2026 Last action Mar 17, 2026

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What changed between versions

Introduced → Engrossed · 4 edits · Mar 17, 2026

MODERATE

The bill was amended to broaden its scope from exclusively covering 'data centers' to covering all 'large load customers,' significantly expanding the number of entities subject to new public interest review criteria. The primary substantive change involves raising the power demand threshold for eligibility from 150 megawatts to 100 megawatts, thereby including more facilities in the regulatory framework. Additionally, the definition of a qualifying entity was simplified by removing the specific requirement that the customer must be a 'data processing center.'

Scope change

The bill's scope was expanded from applying only to large load data centers to applying to any large load customer meeting a 100 megawatt threshold.

ELIGIBILITY

The minimum power demand threshold for a customer to qualify under the bill was lowered from 150 megawatts to 100 megawatts.

DEFINITION

The specific definition of a qualifying entity was changed from 'large load data center' to the broader term 'large load customer.'

The requirement that the customer must meet the legal definition of a 'data processing center' was removed from the eligibility criteria.

The definition of 'large load customer' was updated to replace references to 'data center' with 'large load customer' throughout the text.

Floor votes

How they voted

This bill passed the House by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Mar 17, 2026

Lower · Passed

Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 947

lower

Mar 17, 2026

Lower · Passed

Motion to Adopt - Adopted Roll Call 946

lower

Mar 17, 2026

Introduced

Rafferty 1st Substitute Offered

lower

Feb 10, 2026

Lower · Passed

Reported Out of Committee House of Origin

lower

Feb 5, 2026

Lower · Passed

Pending Committee Action in House of Origin (Transportation, Utilities and Infrastructure)

lower

1 primary · 0 co-sponsors