Alabama’s Economic Growth and the Role of the APSC
It seems we’ve reached a point where Alabama often gets overlooked in discussions about national economic health.
After years of local collaboration and creativity, a new chapter is opening as more industries establish themselves in Alabama’s fertile ground.
We know the stereotypes that can crop up about our state—I’ve certainly encountered a few. However, Alabama is increasingly taking a prominent role in job creation, attracting new residents, and initiating significant economic development projects.
Central to this progress is the Alabama Public Service Commission (APSC), a streamlined, quasi-executive body that holds considerable yet quiet influence. The three elected commissioners have the challenging task of balancing financial stability with affordability for the average citizen concerning large utility companies.
I want to take a moment to commend Governor Kay Ivey for stepping in as president of the APSC after Twinkle Cavanaugh’s departure. Cavanaugh, who recently appointed Cynthia Lee Almond, had previously played a pivotal role with the USDA under the Trump administration, focusing on rural development in Alabama.
This appointment may very well be one of the most significant made by the governor during her tenure in Montgomery. Effective leadership in these roles is essential for fostering industry recruitment and job growth. The monthly decisions by the APSC will greatly influence Alabama’s economic and domestic future, often without public awareness.
Commissioner Almond brings a commendable background from her time in the Alabama House of Representatives and her experience as a practical lawyer. For Alabama’s ongoing success, it’s crucial that the APSC consists of dedicated civil servants who prioritize the welfare of the residents. They should focus on securing large development projects rather than becoming embroiled solely in cultural debates, especially without a grounding in financial and economic development.
In heavy industries, energy expenses can be astronomical, sometimes even overshadowing labor costs. A minor fluctuation in kilowatt-hour rates can lead to million-dollar impacts annually.
Data centers, which have surged in number, are massive energy users. According to the U.S. Department of Energy, these centers consumed around 4.4% of the total U.S. electricity in 2023, a figure projected to rise to 12% by 2030, largely driven by the growth of AI. For these facilities, finding reliable and affordable electricity is non-negotiable.
Birmingham is positioning itself as a tech and research hub in the Southeast, just as our hospital systems have gained international recognition and provide more jobs than any other sector in the state.
The information sector has also experienced remarkable growth, with a 180% GDP increase over the last decade. In 2024, economic development initiatives attracted $7 billion in new capital investments across 224 projects, producing over 8,500 new job opportunities for Alabamians. This growth closely correlates with the strategic decisions made by APSC leadership.
Though often working away from the political limelight, the APSC dramatically influences vital services that underpin everyday life: electricity, natural gas, and water. These aren’t merely commodities; they’re essential for the lives and businesses of all Alabamians.
Without effective leadership and commitment from all APSC members, Alabama’s future—its burgeoning industries, thriving communities, and the well-being of our families—risks lagging behind other states. Building on a foundation that’s too frail will hinder our lofty aspirations for Alabama to lead in economic development and quality of life.
