Alabama Power, the largest electric provider in the state and a subsidiary of Southern Company, is navigating a complex energy landscape marked by transitions, infrastructure upgrades, and regulatory scrutiny. The company recently filed its Integrated Resource Plan (IRP) with the Alabama Public Service Commission (PSC), outlining its strategy for meeting energy demands through 2038. The plan includes a significant investment in solar energy, with approximately 500 megawatts of new capacity to be added over the next three years, alongside continued use of natural gas and nuclear power.

The IRP also acknowledges the eventual retirement of some coal-fired units, although the timeline is disputed by consumer advocacy groups, such as the Southern Environmental Law Center, who argue the plan doesn’t adequately address climate change or offer sufficient cost savings. In response to severe weather events, Alabama Power is undertaking grid modernization efforts, including hardening transmission lines, deploying smart grid technologies, and enhancing vegetation management.

The company is seeking federal funding through the Bipartisan Infrastructure Law to support these projects, which aim to improve grid reliability amid escalating climate risks. A recent PSC hearing raised concerns about cost recovery mechanisms for infrastructure investments, with commissioners questioning the fairness of passing expenses onto ratepayers.

Alabama Power is also responding to growing demand for electric vehicles (EVs) by expanding its EV charging infrastructure and developing incentives for EV adoption. The company has announced partnerships with municipalities to install public charging stations and is exploring new rate structures for EV owners.

The ongoing debate surrounding the Vogtle Unit 3 & 4 nuclear expansion, in which Alabama Power has a stake, continues, with discussions centered on cost overruns and the project’s benefit to Alabama customers. The PSC is monitoring the project’s progress and evaluating its impact on electricity rates. Additionally, Alabama Power is engaged in community outreach programs focused on energy efficiency and affordability, providing assistance to low-income customers and promoting conservation measures across the state.