Renewable energy is getting a lot of attention lately, but at Alabama Power, it has been a part of serving customers for more than a century.

“Renewable energy is part of our history, and part of our present and future,” said Nick Sellers, vice president of regulatory and corporate affairs for the company.

Lay Dam

The company’s very first generating facility, now known as Lay Dam, used the power of falling water from the Coosa River to create electricity. It began operating in 1914; today, Lay Dam is one of 14 renewable, zero-emission hydro plants that continue to serve Alabama Power customers. About a third of Alabama Power’s generation mix is emission-free because of the company’s hydro and nuclear resources.

Alabama Power first began to explore the possibilities of solar energy during the “Energy Crisis” of the 1970s. In 1976 the company opened a cutting-edge business office in Montevallo. The building used Alabama-built solar panels to provide heating and water heating, as well as about 15 percent of the building’s cooling needs. While the technology was promising, it was not cost-effective compared to the price of conventional sources of energy.

In the 1990s the company began looking closely at the potential of renewable biomass as an energy source. Plant Gadsden became a center for research into a number of biomass options, including wood chips and switchgrass. In 2003, the company launched its first renewable energy rate, in which customers could purchase “blocks” of biomass-based renewable energy to add to its energy mix. The program was updated last year to instead allow customers the opportunity to purchase renewable energy credits, or RECs, for as little as $1.25 per month. RECS represent the renewable attributes of energy secured by the company from renewable sources, such as biomass, solar or wind. Customer can purchase as many RECS as they like – enough to match their energy use or more.

Over the past decade, the company has been looking more closely at solar as the price of solar technologies has improved, along with their efficiency. The company installed four different solar technologies on the roof at its corporate headquarters, and solar panels on company property in Mobile County. Small solar arrays were also installed on dozens of company-owned power poles around the state, to see how they interacted with the company’s electrical system. The company also worked with partners on a solar installation at the Birmingham Zoo. The installations have given the company insight into how the panels perform in real-world conditions.

For years, the company has also provided information about solar energy to customers, and has connected customers to credible solar installers. For many years, the company has offered individuals who install solar panels the option of selling their excess energy back to the company. Still, relatively few people have participated in the program because solar systems can be cost-prohibitive for many customers.

In 2011, Alabama Power entered into the first of two, long-term purchase-power agreements for the generation provided by wind farms in the Midwest. Today, the company has agreements for more than 400 megawatts of generation from wind farms in Oklahoma and Kansas – which can produce enough energy to serve about 100,000 homes. The agreements make Alabama Power a leader among Southeast utilities in wind generation. Under the purchase-power agreements, Alabama Power can use the energy from the wind farms, and the associated RECs, to serve its customers or sell the energy and the RECS, together or separately, to others for the benefit of customers. The company has a similar arrangement in connection with its use of biomass energy purchased from local companies, and in connection with energy produced from its hydroelectric dams.

Alabama Power continues to look for ways to expand the use of renewables in the state – where it makes sense for customers. Last month, the company filed a proposal with the Alabama Public Service Commission that would allow the company to pursue a variety of renewable energy projects totaling up to 500 megawatts over a six-year period. It would provide broad options for the company to work with customers who have made renewable generation a priority, while protecting other customers from bearing any additional costs. The proposal will be the subject of a public hearing next month in Montgomery.

“As the costs for renewables come down, as the efficiency of the technology increases, we will be looking to add more renewables to our generation mix,” said John Kelley, director of forecasting and resource planning for the company.