The bill introduces a new section, 37-4-22.1, to the Code of Alabama 1975, which outlines specific considerations for the Public Service Commission when reviewing and approving retail electric service contracts between utilities and large load data center customers. The bill defines "incremental costs" as the additional expenses incurred by the utility due to the contract with a large load data center customer, which is defined as a customer requiring a peak demand of 150 megawatts or more for data processing purposes. The bill emphasizes that contracts must allow for the recovery of these incremental costs and should also provide positive benefits to other retail electric customers.

Additionally, the bill stipulates that the commission must evaluate whether the contract pricing and terms could lower costs for other customers, enhance the efficiency of the utility's power system, and contribute to economic growth in the community where the data center is located. The act is set to take effect on October 1, 2026. There are no deletions from current law mentioned in the text provided.