Alabama Power proposes up to 500 megawatts of renewable generation
Plan result of customer dialogue about solar, renewable options

In response to growing customer interest, Alabama Power is seeking approval for up to 500 megawatts of renewable generation, including solar.

Alabama Power crafted the proposal after months of conversations with customers about the kinds of renewable options they would like to see, in addition to the company’s existing hydro and wind resources.

Filed with the Alabama Public Service Commission in June, the plan would allow Alabama Power to pursue a variety of projects up to 80 megawatts each, totaling up to 500 megawatts over a six-year period. It would provide broad options for the company to work with customers who have made renewable generation a priority, while protecting other customers from bearing additional costs.

“This proposal provides a common-sense path for expanding renewables in Alabama,” said Nick Sellers, Alabama Power vice president of Regulatory and Corporate Affairs. “The Public Service Commission has been clear that they do not want renewables to be subsidized by all of our customers. This filing achieves that policy directive while also allowing for solar and new renewable energy projects that are expected to provide economic benefit for all of our customers.”

Under the proposal, Alabama Power could construct its own renewable projects or purchase renewable generation from other sources, up to 500 megawatts before needing to seek a larger limit. If approved by the Alabama Public Service Commission, the company would be able to move forward working with interested customers.

“As a service provider, our focus is to make sure we are providing customers access to choices they want,” said Tony Smoke, Alabama Power vice president of Marketing. “Through this plan, we are creating new customer options to sustain and grow industry in our state.”

Five hundred megawatts of solar can supply enough renewable energy to serve up to 100,000 homes during an hour of peak sun intensity on cloudless days. Alabama Power already has 1,600 megawatts of hydro resources across Alabama and 404 megawatts of wind generation from projects in Kansas and Oklahoma. Alabama Power has the ability to resell this energy, or the associated renewable energy credits, to third parties, to help keep rates low for customers.

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Alabama Power, a subsidiary of Atlanta-based Southern Company (NYSE: SO), provides reliable electricity to more than 1.4 million customers at a total retail price that has been below the national average for decades.