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SB268 INTRODUCED
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SB268
I3S8CWZ-1
By Senators Singleton, Sessions, Williams, Smitherman, Jones,
Coleman-Madison, Figures
RFD: Fiscal Responsibility and Economic Development
First Read: 05-Feb-26
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I3S8CWZ-1 02/03/2026 PMG (L)PMG 2026-639
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First Read: 05-Feb-26
SYNOPSIS:
The Public Service Commission regulates certain
utilities in the state. The commission is comprised of
three members who are elected at-large.
This bill would provide that following the terms
of the members serving immediately after the November
2026 General Election, the members shall be appointed
by the Governor, Speaker of the House of
Representatives, and President Pro Tempore of the
Senate, subject to confirmation by the Senate.
This bill would provide further for the
qualifications of commissioners.
Under existing law, commissioners are prohibited
from taking certain actions that would result in a
conflict of interest with a utility that the commission
regulates.
This bill would extend the prohibition to
include actions that would result in a conflict of
interest with a nonutility entity parpticipating in a
matter pending before the commission.
This bill would require periodic public
informational meetings with utility representatives to
provide a status update to the commission, commission
staff, and the public regarding general trends in the
industry.
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industry.
This bill would require the commission to ensure
that lobbying expenses are not paid by ratepayers.
This bill would also make nonsubstantive,
technical revisions to update the existing code
language to current style.
A BILL
TO BE ENTITLED
AN ACT
Relating to the Public Service Commission; to amend
Sections 37-1-3, 37-1-5, 37-1-6, and 37-1-7, Code of Alabama
1975; to provide for appointment of commissioners to the
Public Service Commission; to further provide for
qualifications of commissioners; to extend conflict of
interest provisions imposed on commissioners to include
actions with certain nonutility entities participating in
matters before the commission; to require the commission to
hold certain periodic public informational meetings with
utility representatives; to add Section 37-1-54.1 to the Code
of Alabama 1975, to require the commission to ensure lobbying
expenses are not charged to ratepayers; to amend Sections
17-14-1, 17-14-2, and 17-14-3, and 36-3-1, Code of Alabama
1975, to make conforming changes; and to make nonsubstantive,
technical revisions to update the existing code language to
current style.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
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BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. The Legislature hereby finds all of the
following:
(1) Alabama's current model for regulating critical
infrastructure and public service industries was established
over 100 years ago and is not the best model for ensuring that
Alabamians are best-served and well-positioned for future
challenges.
(2) Most states in America do not elect their state
regulatory bodies. Currently 40 states appoint their version
of the public service commission.
(3) There are dozens of regulatory bodies and agencies
in Alabama and none of them are elected. These include offices
regulating complex and critical industries including banking,
insurance, and many others.
(4) All current members of the public service
commission were initially appointed to their position by the
Governor.
(5) The law currently establishes no conflict of
interest restrictions on for profit and nonprofit advocacy
organizations' relationships with members of the commission
other than those entities that meet the definition of
"utility" under current law.
Section 2. Sections 37-1-3, 37-1-5, 37-1-6, and 37-1-7,
Code of Alabama 1975, are amended to read as follows:
"§37-1-3
(a) Members of the commission serving on the effective
date of this act shall continue to serve until their
respective terms expire.
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respective terms expire.
(b) The terms of office of the commissioners shall be
for four years ; at.At the election to be held in the state on
the first Tuesday after the first Monday in November , 1940,
and every four years thereafter until November 2028 , a
president of the commission shall be elected by the qualified
electors of this state; and at the election to be held in the
state on the first Tuesday after the first Monday in November ,
1942, and every four years thereafter until November 2030 , two
associates, who, with the president, shall constitute the
commission, shall be elected by the qualified electors of the
state. The result of such the election shall be ascertained
and declared by the same authority and in the same manner as
are the results of election for Chief Justice and associate
justices of the Supreme Court supreme court .
(b)(c) The persons individuals elected to fill the
offices shall enter upon the discharge of their respective
duties on the day after the general election at which they are
elected and expire on the day after the general election held
in the fourth year after their election.
(c)(d) If any vacancy should occur occurs in any one of
the offices elected under subsection (b) , caused by death,
resignation or otherwise, the same office shall be filled by
appointment by the Governor , the appointee holding for the
balance to serve for the remainder of the unexpired term. If
any person individual elected to the office of public service
commissioner shall fail or refuse fails or refuses for 30 days
to qualify, such the failure or refusal shall be held to
create a vacancy in the office, which and the vacancy shall be
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create a vacancy in the office, which and the vacancy shall be
filled by appointment by the Governor , the appointee to hold
for the term for which the person so failing or refusing to
qualify was elected .
(e)(1) Beginning in November 2028, upon the expiration
of the term of office of the president of the commission, the
position of president shall be filled by appointment of the
Governor in accordance with subdivision (3).
(2) Beginning in November 2030, upon the expiration of
the term of office of the two associate members of the
commission, the associate commissioner positions shall be
filled by appointment of the Speaker of the House of
Representatives and the President Pro Tempore of the Senate,
respectively, in accordance with subdivision (3).
(3) Individuals appointed to the commission pursuant to
this subsection shall serve for a term of four years beginning
on the day after the previous term of the office expired for
the initial appointed terms, and beginning on November 1 for
subsequent terms.
(4) All appointments under this subsection shall be
subject to Senate confirmation. Appointed members may begin to
serve on the commission even if not yet confirmed by the
Senate. If an appointed member of the commission is not
confirmed during the first regular session of the Legislature
following his or her appointment, the respective appointing
authority shall appoint another individual who shall
immediately begin serving and be subject to Senate
confirmation no later than the next regular legislative
session.
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session.
(5) In addition to any other requirements set forth in
this chapter, in making appointments to the commission, the
respective appointing authorities shall select individuals
with experience relevant to the duties of the commission
including, but not limited to, experience with utility
regulation, energy or infrastructure policy or issues,
regulatory issues, economics, law, engineering, finance,
accounting, business, or economic growth issues. Each member
appointed to the commission must be a resident of this state
and of high moral character and ability.
(6) The respective appointing authorities shall
coordinate appointments so that the commission membership is
inclusive and reflects the racial, gender, geographic, urban,
rural, and economic diversity of the state.
(7) If a vacancy occurs in one of the appointed seats
on the commission under this subsection, a new member shall be
appointed by the respective appointing authority to serve for
the unexpired term and shall be subject to Senate confirmation
as further provided for in subdivision (4).
(f) A member of the commission may be appointed to more
than one term.
(d)(g) The provisions of this section shall not
diminish the current term of any member terms elected to the
Public Service Commission before the effective date of this
act."
"§37-1-5
No public service commissioner or clerk of the
commission shall, during his or her continuance in office,
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commission shall, during his or her continuance in office,
personally or through any partner or agent, render any
professional service for public utilities or for any
nonutility entity participating in matters pending before the
commission ."
"§37-1-6
No person owning An individual who owns any stock in ,
any utility, or in the employment of any utility or
pecuniarily interested is employed by, or has a pecuniary
interest in any utility , as defined in this title, shall be or
any nonutility entity participating in matters pending before
the commission is not eligible to the office of public service
commissioner."
"§37-1-7
(a) The commissioners may be impeached and removed from
office by the supreme court for the same causes and in the
same manner as other state officers ;, and any commissioner who
shall accept accepts directly or indirectly any gift,
gratuity, emolument , or employment from any person , firm,
corporation, company or association, owning or operating in
whole or in part in this state a utility , as defined in this
title, or any nonutility entity participating in matters
pending before the commission during his or her term
continuance in office, except a pass for himself or any
employee of the commission on official business, shall forfeit
his or her office and may be impeached and removed from office
therefor, or for any other cause of impeachment .
(b) Consistent with its duties and responsibilities
under this chapter, at least annually, the commission, through
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under this chapter, at least annually, the commission, through
its staff, shall convene a public meeting with utility
representatives to provide information to the commission, its
staff, and the public on cost trends, reliability, resilience,
general infrastructure investment plans, competitiveness with
peer states, economic development impacts, and other
regulatory issues the commission deems relevant. It is the
intent that these meetings be conducted in a manner that
facilitates public participation and provides a review of key
issues that the commission believes will be helpful to the
public in understanding issues that impact services under its
jurisdiction. "
Section 3. Section 37-1-54.1 is added to the Code of
Alabama 1975, to read as follows:
§37-1-54.1
Consistent with its authority under this chapter, the
commission shall establish, adopt, or implement requirements
as necessary to ensure that all lobbying expenses are
appropriately charged under the commission's system of
accounts in such a manner that those expenses are not charged
to ratepayers.
Section 4. Sections 17-14-1, 17-14-2, 17-14-3, and
36-3-1, Code of Alabama 1975, are amended to make conforming
changes to read as follows:
"§17-14-1
The following officers in this state shall be elected
by the qualified electors thereof: Governor, Lieutenant
Governor, Attorney General, Auditor, Secretary of State,
Treasurer, Commissioner of Agriculture and Industries, public
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Treasurer, Commissioner of Agriculture and Industries, public
service commissioners, senators and representatives in the
Legislature, Chief Justice and associate justices of the
Supreme Court, judges of the courts of appeals, circuit
courts, and district courts, district attorneys, judges of the
probate court, sheriffs, coroners, clerks of the circuit
courts, tax assessors, tax collectors, county treasurers in
counties of more than 56,000 population, as provided by law,
members of county commissions, constables, representatives in
Congress, United States senators, electors for President and
Vice President of the United States, and such other officers
as may be required by law to be elected by the people, when
not otherwise specially provided for."
"§17-14-2
General elections throughout the state shall be held
for Governor, Lieutenant Governor, Attorney General, Auditor,
Secretary of State, Treasurer, Commissioner of Agriculture and
Industries, three public service commissioners, no two of whom
shall be elected from the same congressional district, Chief
Justice and associate justices of the Supreme Court, judges of
the courts of appeals, electors for President and Vice
President of the United States, United States senators, and
such other officers as may be required by law to be elected by
the voters of the entire state; for a member of Congress in
each congressional district; judges of the circuit court in
each judicial circuit; judges of the district courts in each
district; district attorneys in each judicial circuit; a
senator in each senatorial district; a representative in the
Legislature in each house district; a judge of the probate
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Legislature in each house district; a judge of the probate
court, sheriff, clerks of the circuit courts, tax assessor,
tax collector, a county treasurer in counties of more than
56,000 population, as provided by law, coroner, and members of
the county commission in each county, and constables in each
precinct of the county."
"§17-14-3
The Governor, Lieutenant Governor, Attorney General,
Auditor, Secretary of State, Treasurer, Commissioner of
Agriculture and Industries, senators and representatives in
the Legislature, a sheriff in each county, one coroner in all
counties having a coroner, and other officers not otherwise
provided for, shall be elected on the first Tuesday after the
first Monday in November 2006, and every fourth year
thereafter. A president of the Public Service Commission shall
be elected on the first Tuesday after the first Monday in
November 2008, and every fourth year thereafter. Two associate
public service commissioners shall be elected on the first
Tuesday after the first Monday in November 2006, and every
fourth year thereafter. "
"§36-3-1
The Governor, Lieutenant Governor, Attorney General,
Auditor, Secretary of State, Treasurer, and Commissioner of
Agriculture and Industries , the President of the Public
Service Commission and two associate public service
commissioners shall hold their respective offices for the term
of four years from the time of their installation in office
and until their successors shall be elected and qualified,
such installation to take place on the first Monday after the
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such installation to take place on the first Monday after the
second Tuesday in January next after their election."
Section 5. This act shall become effective on December
1, 2026.
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