Montgomery, Ala. (WDNews) — Alabama Power has filed a petition with the Alabama Public Service Commission (PSC) to purchase the Lindsey Hill natural gas power plant in Autauga County, a move that could lead to higher bills for its customers.
Filed on Oct. 30, the petition requests approval to acquire the facility, located in Billingsley, from Tenaska Alabama Partners, L.P., a Delaware-based partnership. If approved, rate increases for residential customers are not expected until mid-2027, according to a company spokesperson.
The utility anticipates a growing need for energy, estimating it will require an additional 1,200 megawatts of power by the end of the decade. The Lindsey Hill plant is capable of generating nearly 900 megawatts during winter months, which could help address projected energy deficits starting in 2028.
Alabama Power has not disclosed how much it plans to spend on the acquisition but expects to offset the costs by raising monthly residential bills by $3.80 on average. The impact on commercial and industrial rates remains unclear.
The company currently has surplus capacity but expects reserves to decline from 650 megawatts in 2026 to just 150 megawatts by 2028, prompting the need for additional power generation.
The PSC will review the petition in the coming months before making a decision.
