Alabama approves two-year electric rate freeze and solar projects

The Alabama Public Service Commission approved a temporary two-year electric rate freeze and authorized two large-scale solar projects tied to Meta’s Montgomery data center.

• Main action: The PSC voted 3-0 to freeze electric rates at 2025 levels through 2027, delaying a rate increase tied to the $622 million purchase of a natural gas plant until 2028; the order also transfers projected excess 2025 profits into Alabama Power’s Natural Disaster Reserve and locks the Rate RSE factor for two years. The PSC approved two solar projects—Stockton I (80 MW) and Stockton II (180 MW)—to be built in Baldwin County by Dotier, LLC (a Meta subsidiary), with completion expected by Dec. 31, 2028, and Alabama Power buying the projects’ power while Dotier retains the RECs.
• Background and implementation details:Alabama Power will keep environmental compliance and fuel cost factors steady through 2027, use nuclear production tax credits to offset lost revenue during the freeze, and rely on internal cost control measures; critics (Energy Alabama) call the freeze a cost-shifting delay and noted limited public input during the shortened adoption period.