Alabama Power Company is issuing a comprehensive Request for Proposals seeking reliable electric capacity resources to meet the needs of its 1.5 million customers. The Company is accepting proposals for: (1) Firm Capacity and Energy Agreements (PPAs) from new and existing dispatchable electric generation facilities; (2) Energy Storage Capacity Agreements (ESAs) from new and existing dispatchable energy storage facilities; (3) Asset Purchase and Sale Agreements (APSAs) for existing dispatchable electric generation facilities in commercial operation; and (4) Build-Transfer Agreements (Storage BTAs) for new energy storage facilities to be constructed and acquired by the Company.
All proposals must be for dispatchable supply-side resources using commercially proven technology capable of meeting established reliability and performance criteria. With limited exception for Current PPA Projects, each project must be at least 100 MW in size. Resources must be available year-round and dispatchable with a focus on meeting both summer (June-September) and winter (December-February) peak demands. Service commencement is targeted for December 1, 2032, though early commencement as early as December 1, 2028 may be considered if adequate additional value is provided. PPA terms range from 5 to 25 years, with ESA and Storage BTA terms also ranging from 5 to 25 years. Bidders are responsible for all costs related to interconnection, transmission, fuel supply arrangements, permitting, and site control.
Key dates include: NOI deadline of November 26, 2025 at 5:00 p.m. CPT; Bid Proposals deadline of January 16, 2026 at 5:00 p.m. CPT; Questions accepted until January 9, 2026 at 5:00 p.m. CPT; Short List/Reserve List determination by August 15, 2026. Interconnection study requests must be submitted by February 17, 2026 through April 3, 2026. All bidders must execute a Confidentiality Agreement and submit a non-refundable Bid Fee of $15,000 per project. PPA and ESA bidders selected for competitive tier must submit a due diligence evaluation fee of $50,000. APSA and Storage BTA bidders must submit Preliminary Due Diligence Evaluation Fee of $100,000 and potential Full Due Diligence Evaluation Fee of $700,000.
Proposals must demonstrate firm capacity availability, Automatic Generation Control (AGC) capability, and for Combined Cycle and Combustion Turbine resources, minimum downtime requirements (8 hours and 4 hours respectively, with 1 hour preferred). All PPAs must be based on tolling principles or non-tolling arrangements with detailed fuel supply plans. All ESAs require full Company control of facility charging and discharging with continuous 4-hour discharge capability. Bidders must comply with all federal, state, and local environmental regulations and provide appropriate environmental permits and compliance narratives. Interconnection costs from bidder's facility to proposed interconnection point are bidder's responsibility.