PSC candidate calls for protections when reviewing data center contracts
Sheila McNeil said Alabama Power’s largest customers should cover infrastructure costs as regulators weigh rules for fast-growing data center demand.
As the Alabama Public Service Commission develops procedures for reviewing contracts between Alabama Power and large-load data centers, Democratic PSC Place 2 candidate Sheila McNeil is urging the Commission to protect ratepayers, ensure transparency, require measurable community benefits and incorporate regional coordination into its review process.
The PSC is accepting public comments through August 6 on the procedures and standards it should use when reviewing these contracts.
Following recent comments from President Donald Trump and U.S. Sen. Tommy Tuberville promoting data centers as an economic opportunity, McNeil said economic growth should benefit everyday Alabamians, not just large corporations.
“Economic growth matters. Good jobs matter. A stronger Alabama matters,” McNeil said. “But if Alabama is going to win, Alabama families must win too.”
McNeil said the PSC’s responsibility is to determine whether these contracts serve the public interest by protecting existing customers from unreasonable costs, maintaining a reliable electric grid and ensuring host communities receive lasting benefits.
She also said large-load customers, not existing ratepayers, should pay the costs of the utility infrastructure required to serve their facilities.
“Alabama families and small businesses should not subsidize the utility infrastructure needed to serve some of the largest electric customers our state has ever seen,” McNeil said.
McNeil also called for a regional planning strategy rather than evaluating proposed electric-service contracts in isolation.
“Data centers don’t just affect one community. They can affect regional electric grids, water resources, transportation infrastructure, housing and workforce needs,” McNeil said. “The PSC should support and participate in a regional planning process that brings together federal, state and local governments, utilities, technical experts, environmental professionals and affected communities.”
McNeil acknowledged that the PSC does not control data-center siting or environmental permitting but said coordinated regional information can help the Commission understand cumulative electric demand, infrastructure needs and other factors relevant to its contract decisions.
“We need a regional strategy that gives the PSC the information it needs to determine whether a proposed contract protects ratepayers and serves the public interest,” McNeil said.
McNeil said the Commission should carefully evaluate promised economic benefits, including permanent jobs, wages, local hiring, tax revenue after incentives and long-term community investments, not simply the size of a project’s announced investment. She also encouraged the PSC to hold public hearings in affected communities before making major contract decisions.
“The people who pay the bills and live in these communities deserve a meaningful voice before major decisions are made,” McNeil said.
McNeil encouraged Alabamians to submit comments to the PSC before the August 6 deadline.
“This isn’t about automatically saying yes or no to data centers,” McNeil said. “It’s about making sure Alabama gets them right by protecting ratepayers, strengthening our communities, planning responsibly for the future and ensuring economic growth benefits everyone.”