Alabama Power just implemented a new "Renewable Energy Rider" on Schedule RER at $0.00091/kWh for their solar program. The tariff language is confusing - it mentions "cost recovery for renewable energy investments and purchased power agreements" but doesn't specify what costs are actually included. My Birmingham industrial clients are asking questions I can't answer. Has anyone dug into the details of this rider?
Alabama Power solar rider - anyone else confused?
Terrence, MLGW here in Memphis has been watching Alabama Power's solar program closely since we're considering something similar. From what I understand, their RER rider covers both owned solar facilities and long-term purchase agreements with third-party solar developers. The Alabama PSC approved it as part of their 2019 rate case settlement. The cost recovery should be limited to actual renewable investments, not general system improvements.
I've been tracking Alabama Power's solar investments since they announced the 500 MW program in 2018. The rider should only recover costs for the specific solar facilities listed in their PSC filing - about $850 million total investment. If they're including other renewable costs like wind PPAs or general grid modernization, that would exceed the approved scope. Terrence, request the detailed cost breakdown from Alabama PSC records.
Down here in Louisiana, Entergy has a similar renewable rider but with much clearer cost documentation. They file quarterly reports showing exactly which projects are being recovered through the rider. Alabama Power should have similar reporting requirements. Terrence, the key is making sure they're not double-recovering any costs that were already included in base rates during their last rate case.