Alabama Public Service Commission approves Alabama Power gas plant acquisition amid soaring gas prices – Southern Environmental Law Center

BIRMINGHAM, Ala. — At present the Alabama Public Service Fee accepted Alabama Energy’s request to amass the Calhoun Fuel Plant and in addition elevated the utility’s vitality value restoration issue, leading to an roughly $7 improve to Alabamians’ month-to-month payments.

Simply over a 12 months after receiving approval so as to add nearly 1,900 megawatts of extra fuel sources, Alabama Energy requested in October 2021 to amass Calhoun Fuel Plant, one more plant that generates electrical energy by utilizing “pure fuel,” a carbon-emitting fossil gas manufactured from methane.

SELC intervened within the continuing on behalf of Vitality Alabama and GASP and advocated for clear, cost-effective alternate options like photo voltaic and battery storage services and extra vitality effectivity applications — alternate options that may not solely be cheaper for Alabamian ratepayers, however which might additionally defend them from value hikes just like the one the fee accepted in the present day. 

Alabama Energy claims that it wants the Calhoun plant as a result of it plans to retire a big coal unit on the Barry Plant close to Cellular; nonetheless, the utility’s flawed planning course of did not adequately think about clear vitality choices in lieu of additional dependency on fossil fuels with unstable — and more and more excessive — costs.

Elevated funding in fossil fuels is regarding not solely due to their impression on local weather change, however as a result of costs for renewable types of vitality like wind and photo voltaic — already decrease than fuel — are anticipated to fall additional because of improvements in expertise, whereas the worth of fuel is predicted to remain excessive for the foreseeable future.

“Alabama Energy is doubling down on fuel at a time when utilities must be pursuing lower-cost and less-risky renewable vitality and vitality effectivity choices,” says Christina Andreen Tidwell, senior legal professional in SELC’s Alabama workplace. “Particularly contemplating the vitality burden Alabamians already face, the Public Service Fee’s choice ought to have considered the volatility, final environmental impacts, and hefty price ticket of fuel, slightly than merely passing them on to Alabamians.”

“Regardless of Southern Firm’s purported dedication to a net-zero carbon objective, Alabama Energy continues to take a position ratepayer cash into vitality sources that harm the atmosphere and communities within the state,” says Michael Hansen, government director of GASP. “Let’s be crystal clear: fuel is neither clear nor renewable. The Alabama Public Service Fee should maintain the utility accountable to the households most affected by the corporate’s choice to push ahead with reliance on fuel.”

“The Fee ought to have required Alabama Energy to conduct a strong and clear planning course of to make sure that the utility’s vitality useful resource choices are in the very best curiosity of shoppers as an alternative of shareholders,” says Daniel Tait, government director of Vitality Alabama. “As an alternative, the Fee rubberstamped Alabama Energy’s request for costlier and unreliable fossil fuels.”

Based on Southern Firm’s personal knowledge, Alabama Energy’s common “pure fuel” gas value improve in 2021 was bigger than every other gas supply. Now that the fee has voted to extend Alabama Energy’s vitality value restoration issue, Alabamians pays much more for further technology capability that will get little use and is on the whims of a extremely unstable and unpredictable market.