Alabama

Legislative activities

No legislative activities on smart grid have been identified for Alabama.

Regulatory activities

Alabama’s Public Service Commission (PSC) began looking at Distributed Generation in the form of standby generator capacity prior to 1996. Time-of-use rates, hourly and interruptible accounts were evaluated as early as 2000. By 2006, Alabama Power, one of the largest electric suppliers in Alabama, had moved to real-time pricing for industrials, followed by critical peak pricing for residential consumers in 2008, but with time-of-use service only offered to a limited group of businesses. Starting in 2009, Alabama went from only demand-based rates for industrials to residential customers having access to direct load control. [2, 3]

“In June 2007, the Alabama Public Service Commission decided not to adopt PURPA Standard 14 (“Time-Based Metering and Communications”) as enacted in EPACT 2005. Its decision, which followed its Staff’s May 2007 recommendations, states that EPACT 1252 is unnecessary as Alabama Power Company (1) already offers TOU rates to “all available customer classes, as required by the standard in Section 1252”; (2) provides “appropriate meters, as also required” by EPACT 1252; and (3) is deploying smart meters.” [1]

The demand response for industrials started with measuring only the fifteen minute capacity at the meter and allowing the customer to control their capacity between a set maximum and a minimum that is based on the previous eleven months.

Direct load control allows for 50% cycling of controlled equipment during the summer at the company’s discretion up to 120 cycled hours per year.

Time-of-use rates break the cost for electricity into periods on a seasonal basis with either on-peak, intermediate, or off-peak pricing.

The real-time pricing is based on the quoted hourly price available to the consumer eight hours in advance of the day the power flows.

The standby generator capacity allows the utility to take control of the consumer’s generator and fuel supply for up to 240 hours per year.

Utilities and Rate Schedules

Alabama Power
- Alabama Power Residential Rates
- Alabama Power Business Rates

See the National Rural Electric Cooperative Association (NRECA) for information on consumer-owned Cooperatives: http://www.nreca.org/members/MemberDirectory/Pages/default.aspx

State-Level Incentives

Alabama has production incentives for renewable energy generation for both commercial and residential production as well as a state loan program for schools and the local government on renewable energy generation.

More information can be found in the Database of State Incentives for Renewables & Efficiency (DSIRE): http://www.dsireusa.org/incentives/index.cfm?re=1&ee=1&spv=0&st=0&srp=1&state=AL

Additional Resources

State Energy Office:
- Alabama Department of Economic and Community Affairs Energy Division

State Authority Dealing with Energy Regulation:
- Alabama Public Service Commission
- Docket Search: http://www.psc.state.al.us/SearchOrders.asp

Code of Alabama

Database of State Incentives for Renewables & Efficiency (DSIRE): http://www.dsireusa.org/incentives/index.cfm?re=1&ee=1&spv=0&st=0&srp=1&state=AL

References

[1] Demand Response and Smart Metering Policy Actions Since the Energy Policy Act of 2005: A Summary for State Officials, Prepared by the U.S. Demand Response Coordinating Committee for The National Council on Electricity Policy, Fall 2008. URL: http://www.oe.energy.gov/DocumentsandMedia/NCEP_Demand_Response_1208.pdf
[2] Alabama Power Business Electricity Pricing. URL: http://www.alabamapower.com/pricing/al_rates.asp
[3] Alabama Power Residential Electricity Pricing. URL: http://www.alabamapower.com/pricing/bestpricing.asp