Why are coal ash ponds at Plant Barry under scrutiny now?

Recent reporting highlighted 21 million tons of ash near the Mobile-Tensaw Delta and renewed attention to EPA coal ash rules. Regulators and courts may require stronger protections if groundwater or flood risks are present. For Alabama Power, that could change closure methods, speed up spending, and affect how costs are recovered.

What is the difference between cap-in-place and excavation?

Cap-in-place seals ash where it sits with a cover system and monitoring, often at lower upfront cost. Excavation removes ash to a lined landfill or recycling facility, which usually costs more and takes longer but can reduce long-term environmental risk. Regulators assess prudence, timeline, and compliance when deciding what costs are recoverable.

How could 2026 cost recovery affect customer bills?

If spending rises, regulators can spread costs over many years to ease monthly impacts. Tools may include riders, deferred accounting, and, in some cases, securitization to lower carrying charges. The exact effect will depend on approved investment levels, timelines, and performance conditions placed on Alabama Power.

What should investors watch in early 2026?

Track Alabama PSC and environmental filings, contractor awards, and detailed capital plans. Look for clarity on excavation versus cap-in-place, recycling volumes, depreciation lives, and recovery mechanisms. Any court developments or EPA responses could change timing. These signals will guide views on credit, liquidity, and potential customer bill impacts.

Global Market Insights

Alabama Power December 31: Coal Ash Cleanup Costs Back in Focus

ByHuzaifa Zahoor January 1, 2026January 1, 2026

Alabama Power is back in focus as EPA coal ash rules put Plant Barry’s 21 million tons of ash under a brighter light. New reporting this week raises questions about cleanup choices, litigation risk, and how much spending regulators will let the utility recover in 2026. We outline what a shift from cap-in-place to excavation or recycling could mean for budgets, timelines, and customer bills. Investors should prepare for active regulatory and legal calendars tied to environmental compliance in the US Southeast.