Alabama Power’s proposal to secure up to 500 megawatts of renewable generation over the next six years has sparked a flurry of interest from customers and renewable energy developers who want to work with the company on potential projects.

“We’ve definitely had increased interest from developers and from customers – industrial, commercial and residential,” said Liz Philpot, an engineer in the company’s Renewable Resources group.

Stan Helton, Alabama Power’s manager of marketing contracts and project management, said the company is discussing a number of potential renewable energy projects with customers, including some of the state’s military bases.  Some of the potential projects could come to fruition in the coming months.

“There’s a lot of number-crunching involved, to make sure a project make sense – for us and for our customers,” Helton said. “We’re encouraged by the level of interest, and we are talking with customers about potential options.”

The Alabama Public Service Commission (PSC) approved Alabama Power’s proposed renewable generation program in September. Through the program, the company has flexibility to work directly with customers who are interested in renewable energy, while protecting other customers from bearing the additional costs of renewables.

The company brought the idea to the PSC following months of conversations with customers about the kinds of renewable options they would like to see, beyond the company’s existing hydro, biomass and wind resources.

Under the program, the company can either build its own renewable projects or secure purchase-power agreements for renewable energy. Each project can be no larger than 80 megawatts, and the first project must be under construction by September 2016. The projects are subject to review by PSC staff and the state attorney general’s office, and a final vote of approval by the PSC approval.

In addition to working directly with customers and potential developers, the company plans to issue a more formal, request for proposals (RFP) from renewable energy developers. An RFP is expected to be issued by mid-2016.

“The RFP gives us an opportunity to test the broader renewables market, to see what’s available, and at what price,” Philpot said. The PSC included biennial RFPs as part of its approval of the program.

Alabama Power has 1,600 megawatts of hydro resources across Alabama and 404 megawatts of purchased wind generation from projects in Kansas and Oklahoma. The company has the ability to resell the energy from its purchased wind generation and the associated renewable energy credits (RECs) – together or separately – to third parties to help keep rates low for customers. The company has the same flexibility with qualifying projects under the newly approved plan.

Alabama Power customers already have the option to buy RECs, which represent the renewable energy attributes of energy the company is producing or purchasing. Customers can purchase RECs for $1.25 per month under the company’s Rate OPS. They can purchase as many RECs as they like – enough to match all their energy use.

To learn more about Alabama Power and renewable energy, please visit www.alabamapower.com. Click on the Environment tab and then click “Renewables.”